The league has raised the debt limit of owners to $325MM, a move that should lessen the impact of increased payrolls and luxury-tax payments next season, Adrian Wojnarowski of ESPN reports.
The rising value and financial health of NBA franchises was the primary reason for the decision, Wojnarowski continues. Teams with cash flow problems already have mechanisms to get relief but the ability to take on debt is often focused on infrastructure and facility improvements, Wojnarowski notes.
The $325MM debt limit is a $75MM increase and the first time it’s been raised since 2014. The Board of Governors approved the move on Friday but it didn’t become public until Monday.