In February, the Los Angeles Lakers were among three teams in the NBA valued at over $4 billion on the Forbes franchise valuation list, ranking second, only behind the Knicks, at $4.4 billion. While franchise valuation isn’t necessarily representative of the cash flow ownership has at any given time, the Lakers are always near the top of the most profitable franchises in the league and few would think of them as a business getting hit the hardest by the current pandemic.
There is no doubt that sports franchises are feeling the effects and hurting like so many others, but when the federal government launched the Small Business Administration’s Paycheck Protection Program, no one would have thought of the Los Angeles Lakers as an organization worthy of a cut. As it turns out, the Lakers did indeed apply and were granted $4.6 million by the PPP, but have since given the funds back after the coffers went dry amid various reports that large corporations and companies had received loans while many actual small businesses around the country struggled to get through the process, as they told ESPN’s Kevin Arnovitz in a statement.
“The Lakers qualified for and received a loan under the Payroll Protection Program,” the Lakers said in a statement to ESPN. “Once we found out the funds from the program had been depleted, we repaid the loan so that financial support would be directed to those most in need. The Lakers remain completely committed to supporting both our employees and our community.”
The Lakers qualified as they are a business with 300 or so employees, but they certainly don’t operate or bring in revenue like what you would think of when you think of a small business. It’s not surprising that the Lakers and others looked into PPP funding and applied, and truthfully, it’s an indictment of the federal government’s planning and processing of the fund that they were given a loan while others were denied — and that there wasn’t enough set aside to help more businesses in need. Still, it’s the right move to give the money back, as many other larger businesses have, even if it shouldn’t have had to be their decision in the first place. The Lakers are surely being impacted tremendously by the current situation, but there are thousands upon thousands of businesses around the country that find themselves in far worse situations.