NHL Borrows $1 Billion to Spread Across All 31 Teams

The pandemic has taken its toll on all the major sports as each league has had to make drastic changes just to keep operations moving along. The NHL was certainly no different with their bubble playoffs in Toronto and Edmonton and now with divisional alignment changes and no fans in the stands. 

While it's been a small bright light in people's lives to see some hockey on the television each and every night, there's certainly been some hardship. The NHL is in a massive financial hole that could impact the game for decades.

Sounds like the league is doing whatever it can to help all 31 teams, as according to reports, the NHL will be borrowing $1 billion to divide across the league. 

As per Sports Business Journal's Mark J Burns and Chris Smith:

The NHL will create a central entity with the funds to allow all 31 teams to withdraw as much as $30 million to account for cash-flow problems, payroll concerns, and additional operating expenses. The funds are reportedly secured against future league revenue. The lenders could not be identified, and the NHL declined to comment.

A league-wide credit facility already exists, but this is separate from that system, according to Burns and Smith, who added that some teams that have "well-financed" owners aren't likely to take advantage of the opportunity. NHL commissioner Gary Bettman acknowledged earlier this month that the league is expected to lose billions of dollars this season.

Let's hope this monetary strategy can get the NHL back to the stability it needs off the ice. 

Photo credit:  Fred Kfoury III/Icon Sportswire