Lakers return $4.6 million coronavirus relief loan

The Los Angeles Lakers has repaid a $4.6 million coronavirus relief loan the professional basketball organization received as part of the fe...

Posted: Apr 28, 2020 3:42 AM

The Los Angeles Lakers has repaid a $4.6 million coronavirus relief loan the professional basketball organization received as part of the federal government's Paycheck Protection Program.

"The Lakers qualified for and received a loan under the Payroll Protection Program," a Lakers spokesperson wrote in a statement emailed to CNN Business. "However, 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 -- the second-most valuable NBA team with a $4.4 billion valuation, according to Forbes -- is the latest big-name entity to obtain and subsequently return money touted as a Covid-19 relief measure for small businesses. The news was first reported by ESPN.

The highly trumpeted PPP effort has come under scrutiny following reports that large businesses, including publicly traded companies, received high-value loans. The $349 billion in funding, which was quickly depleted, was intended to help small businesses. Following public scrutiny, businesses such as Shake Shack, Ruth's Hospitality and Kura Sushi said they would return their multimillion-dollar loans.

Late last week, Treasury issued guidance intended to prevent large entities -- especially those with other means of securing funding -- from receiving the loans. Companies that cannot, "in good faith," prove that the loan is necessary for their business after fully taking into account their liquidity and operations were asked to repay the loans by May 7, 2020.

The Lakers organization qualified for the $4.6 million PPP loan because it has 303 full- and part-time employees, a source with knowledge of the situation told CNN. The source also said the company has not and is not planning to furlough or lay off any employees and that the Lakers' top executives agreed to defer 20% of their salaries to ensure other employees could be paid.

The Lakers have contributed to a fund along with the Los Angeles Clippers and Los Angeles Kings to provide financial support to employees of Staples Center.

Any loans returned or repaid will go back into the program for future disbursement, an SBA spokesperson told CNN Business last week.

The SBA has not disclosed who was approved for PPP loans and the amount received. CNN and other entities have filed Freedom of Information Act requests for this information. More than 200 publicly traded companies received at least $870 million in PPP loans, according to a FactSquared analysis of US Securities and Exchange Commission filings.

As of April 16, the SBA had approved more than 1.66 million loans for more than $342.2 billion, according to an agency report. Of those, 4,412 were for $5 million and above. The high-value loans represented 0.3% of the total number of loans and 9% of the overall dollar value.

"When a wildly successful sports franchise that can afford to pay LeBron James nearly $40 million a year is being shamed into returning paycheck protection program funds, the question we should be asking is why the White House and Congress haven't been more prescriptive about who and what can qualify for help," Kyle Herrig, president of government watchdog group Accountable.US wrote via email to CNN Business. "This program is in desperate need of increased transparency so that struggling mom and pop small businesses on the cusp of bankruptcy can get the assistance they need."

- CNN's Kevin Dotson contributed to this report.

Oregon Coronavirus Cases

Data is updated nightly.

Cases: 356061

Reported Deaths: 4275
CountyCasesDeaths
Multnomah55695704
Washington38673322
Marion36719454
Clackamas29660309
Lane27624302
Jackson22982310
Deschutes20211125
Umatilla14451150
Linn12780130
Douglas12065243
Josephine9349196
Yamhill8674113
Klamath7965118
Polk733681
Malheur561776
Benton546531
Coos501294
Columbia379744
Jefferson372352
Union318449
Lincoln318039
Crook287546
Wasco287441
Clatsop243329
Baker202529
Tillamook196432
Hood River192137
Morrow184423
Curry180025
Harney113726
Grant100013
Lake92412
Wallowa68612
Gilliam1544
Sherman1503
Wheeler1121
Unassigned00

California Coronavirus Cases

Data is updated nightly.

Cases: 4842472

Reported Deaths: 71202
CountyCasesDeaths
Los Angeles148181426506
Riverside3712935030
San Diego3660564183
San Bernardino3582135663
Orange3241845550
Sacramento1593332308
Kern1459621644
Fresno1458772084
Santa Clara1453911896
Alameda1205301400
San Joaquin1025821721
Ventura1009841166
Contra Costa998841008
Stanislaus860701331
Tulare80203967
San Francisco54375646
San Mateo54112622
Monterey50885587
Solano46021341
Santa Barbara45160523
Merced42299581
Sonoma40925402
Placer39342425
Imperial35999766
Kings32801322
San Luis Obispo29945332
Madera23876285
Shasta23851352
Butte23738270
Santa Cruz21018220
Yolo20353248
Marin17692244
El Dorado17169149
Sutter13913175
Napa12882100
Yuba1008582
Tehama9510110
Humboldt9243108
Nevada914290
Mendocino763687
Lassen754347
San Benito744472
Tuolumne688089
Lake6605104
Amador544064
Siskiyou450546
Glenn436733
Calaveras389381
Del Norte358342
Colusa307218
Inyo211140
Mono16703
Plumas16417
Mariposa133416
Trinity87711
Modoc6865
Sierra1880
Unassigned1820
Alpine1030
Out of CA00
Medford
Cloudy
51° wxIcon
Hi: 57° Lo: 48°
Feels Like: 51°
Brookings
Cloudy
52° wxIcon
Hi: 52° Lo: 49°
Feels Like: 52°
Crater Lake
Cloudy
51° wxIcon
Hi: 36° Lo: 28°
Feels Like: 51°
Grants Pass
Cloudy
51° wxIcon
Hi: 58° Lo: 48°
Feels Like: 51°
Klamath Falls
Cloudy
42° wxIcon
Hi: 48° Lo: 37°
Feels Like: 37°
Showers and cool Friday
KDRV Radar
KDRV Fire Danger
KDRV Weather Cam

Community Events