Penguins, Fenway and Fubo among $ 1.7 billion in PPP loans for sports companies

Nearly 4,000 companies in the sports industry, from big-league franchises to local recreation centers, have received more than $ 1.7 billion under the federal government’s wage protection program, designed to help companies to preserve their jobs during the onset of the pandemic.

Last week, a federal judge ordered the release of loan data that specifies the loan amount of each entity that received $ 150,000 or more (the names of smaller loan recipients are withheld). A previous version of large PPP loan data only provided a range PPP distributions.

Analysis of the latest data shows that 3,968 sports companies have received $ 1.72 billion to support 235,475 jobs. Most loans were relatively small – about a third of industry loans ranged from $ 150,000 to $ 200,000, for example. There were 286 sports companies that received loans of $ 1 million or more. The main beneficiaries, who took out loans of up to $ 10 million each, were the New York Racing Association, which operates Aqueduct, Belmont and Saratoga racetracks, and Youfit, a chain of fitness centers in the South is.

About 473 sports teams, sports conferences and halls of fame have received PPP loans. The Lemieux Group, which owns Mario Lemieux’s stake in the Pittsburgh Penguins, received a PPP payout of $ 4.82 million, while Major League Soccer teams in Washington DC, Seattle and Orlando each received more. of $ 1.7 million. Orlando City SC, majority owned by Brazilian Flávio Augusto da Silva, is reportedly set to sell for $ 400 million.

Several racing groups received large loans, including Richard Childress’s NASCAR team, RCR Enterprises ($ 6.33 million); Chip Ganassi Racing ($ 3.96 million); Andretti Autosport ($ 2.3 million); and Roush Fenway Racing ($ 3.53 million). The latter is a division of Fenway Sports, which discusses a 8 billion dollars IPO transaction with a SAVS.

Meanwhile, sports-centric channel Fubo TV, which raised $ 183 million in cash when it closed its initial public offering in October, received a $ 4.7 million PPP loan. .

P3 loans were designed to encourage small businesses to keep workers on the payroll. The maximum limit of $ 10 million applies to each business entity, which means that some brands have received much more. For example, Planet Fitness gyms received at least $ 26 million in loans due to having six different franchise owners, including a Boston-based private equity firm. Lending parameters have also focused primarily on the salary costs and net income of a business unit, meaning that the business branches of seemingly wealthy sports figures, including Andre Agassi, Scott Boras, Tom Brady and Floyd Mayweather were able to acquire PPP disbursements.

Loans are repayable by the federal government based on expenses (primarily related to payroll) incurred in a period following the loan. A total of 4.9 million loans worth $ 521 billion were disbursed by the federal government as part of its efforts to support the economy during the spread of the COVID-19[female[feminine pandemic, according to a Small Business Administration report in June.

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