It is unclear exactly how much financial damage the coronavirus pandemic will cause to the Warriors and the NBA in general.
“Golden State Warriors owner Joe Lacob has informed his fellow owners of a deal he is considering with Goldman Sachs to raise up to $ 250 million to manage future expenses,” sources recently told ESPN’s Brian Windhorst.
But the Golden State-owned group could end up going in a different direction.
“On Tuesday, Warriors sources reported that the deal has not yet been agreed and that alternative options are being explored, including cash calls and other measures,” writes Ethan Strauss of Athletic. “Right now, the Warriors are ‘looking for the best deal,’ which makes them seem more like a powerful lender than a desperate borrower.”
With COVID-19 forcing the doors of the Chase Center to close, the vast amount of revenue the franchise was supposed to generate has been suspended.
When you combine this with the fact that the NBA still doesn’t know what the salary cap and luxury tax line will be for next season and beyond, it makes it difficult to forecast spending capabilities.
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As a result, Lacob and the Warriors aren’t sure how comfortable they are spending in free agency this October.
“Depending on the economy, we have to be smart and pragmatic,” CEO Bob Myers told reporters in early June. “I can only see past history where Joe (Lacob) has always been receptive to spending if he helps us win. We are in a very unique situation now. I have no idea what the future holds in terms of some of the parameters.
“But I do know that we have a group of owners that is aggressive and always seems to push the limits. Resources have always been very positive in our organization. It’s a good thing to have. Again, I only know what I’ve seen and existed, which is what we’ve been spending a lot in the past. “
The 2020-21 season won’t start until December at the earliest, giving the Warriors plenty of time to prepare for what comes their way.
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Will fans be allowed at Chase Center? Will there even be games at the new San Francisco stadium, or will the NBA have to turn to some kind of bubble campus?
All of that remains to be determined.
“Even if there is a lot of concern about whether the NBA has fans coming to games next season and even if the Warriors get a disproportionate amount of money out of gate revenue, there isn’t much panic on 1 Warriors Way,” he writes. Strauss.
For all parties involved, hopefully the outlook continues.
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