from the paywall article, it is suggested that the teams may be real sellers of talent as their ownership has taken significant damage to their wealth sources during covid, and if the cap drops to $109 million, may consider divesting salary obligations to shore up near term losses elsewhere.
https://theathletic.com/2076228/202...which-nba-franchises-are-hurting-financially/
Pinched vs. prospering: Which NBA franchises are hurting financially?
"Pacers: Owner Herb Simon boasts billions, but he’s in a small market and his Simon Property Group is heavily leveraged into malls. Yes, malls. This was a troublesome business to be in
before the pandemic struck. Today’s Motley Fool update on the Simon Property Group
begins with the statement, “There’s really no way to put a positive spin on 2020 for Simon Property Group (NYSE:SPG) or its shareholders.” Yikes."
"Rockets: This one is obvious. Rockets owner Tilman Fertitta is invested heavily in restaurants, hotels, amusement parks, casinos and, really, any property you can name that might have been devastated by COVID-19. We’ve seen the public signs of financial issues.
Fertitta lobbied President Donald Trump in person for a restaurant chain bailout and he got a private loan
at very high interest rate. Basically, he looks like he’s desperately trying to hold on, just as this Rockets era could be unraveling. Bad times in Houston could be ahead"
"Heat: Two words:
Carnival Cruises. Still, I’ve heard some league insiders say that Heat owner and Carnival Corporation chairman Micky Arison has a bit less exposure to the losses than you might think. I also happen to believe that, when the pandemic ends, older people will return to cruise ships en masse. Their love of cruises is about as constant as Heat culture."
"Kings: This is the little brother of the Warriors’ situation. The Kings have a new-ish arena, which means they have new costs. Vivek Ranadivé is not among the wealthier owners and Sacramento is a smaller market. The Kings have a lot to sort out financially. Hopefully, they can get better stewardship on that front
than they’ve gotten in the recent past."
"Knicks: To quote Knicks great Patrick Ewing, yes the Knicks make a lot of money, but they spend a lot of money, too. The Madison Square Garden Company is heavily invested in entertainment ventures that have been hard hit, such as basketball and hockey. Due to that, its stock price cratered in the spring and has yet to really recover. The Knicks have traditionally squandered their financial advantage over other teams. Perhaps even that edge is eroding."
"Raptors: It’s a very similar situation to the Knicks, save for the on-court product. Maple Leaf Sports & Entertainment presides over multiple sports franchises and the high costs associated with them. This pandemic represents a haircut on many fronts."
"Warriors: This one is local. The Warriors spent lavishly to build an arena on the last piece of good land in San Francisco. That was all great when Chase Center could reliably bet on season-ticket revenue and lucrative concerts, but not so much during the big freeze. Meanwhile, the franchise has been stuck on a TV contract that was signed shortly after Joe Lacob and Peter Guber bought the team, locking them out of proceeds that could have been netted from their miraculous rise. Now the Warriors claim a very expensive roster, having committed roughly a combined $130 million to their four best-paid players next season (Stephen Curry, Klay Thompson, Andrew Wiggins and Draymond Green)."
teams with ownership doing well and prospering during the financial crisis include
Cavaliers:
Nets
Clippers