On Monday, John Lombardo of Sports Business Daily reported that the Washington Wizards and all other NBA teams received a $30 million cash distribution from the NBA later this month. The funding comes from the private-placement market which totaled $900 million (with each of the 30 teams receiving $30 million).
For those of you who are not finance gurus (and I’m not), here’s what this more-or-less means.
The NBA received $900 million from a round of securities. But unlike public offerings of securities which are stocks, bonds or warrants, this private placement offering is made of securities that are raised and sold to a private group of institutional investors.