3,968 sports companies received $ 1.72 billion in Paycheque Protection Program, or P3, Loans intended to help support small businesses during the pandemic. 286 sports companies received loans of $ 1 million or more, of which $ 232 million went to teams like the Pittsburgh Penguins, Orlando City SC and Roush Fenway Racing.
According to a recent analysis of PPP data, Sportico found that $ 781.8 million of this money went to fitness and recreation centers, $ 270.3 million to sporting goods retailers, $ 181.9 million was given to article manufacturers in sports, $ 170.4 million went to sports education businesses, $ 84.5 million went to various other sports-related businesses, while the rest went to sports teams.
A total of 473 sports teams, sports conferences and halls of fame have received PPP loans.
The Lemieux Group, which owns a large part of the Pittsburgh Penguins, obtained $ 4.82 million in P3s.
Major League Soccer teams in Washington DC, Seattle and Orlando each received more than $ 1.7 million. (Sporty points out that Orlando City SC is reportedly set to sell for $ 400 million.)
Several racing teams have also received millions of PPP loans, including RCR Enterprises ($ 6.33 million), Chip Ganassi Racing ($ 3.96 million), Andretti Autosport ($ 2.3 million) and Roush Fenway. Racing ($ 3.53 million).
The New York Racing Association, which operates the aqueduct, received the maximum PPP loan of $ 10 million, as did the Belmont and Saratoga racetracks.
Fubo TV, which promotes itself as one of the leading providers of sports content, received a PPP loan of $ 4.7 million. Yet in October, that same company raised $ 183 million in cash in an IPO.
According to United States Small Business Administration (SBA), “The Paycheck Protection Program is a loan designed to directly incent small businesses to keep their employees on the payroll. “
However, the SBA’s definition of “small business” is probably not what the average person would consider “small.”
Small Business Financial Resources Website Fundera states that the SBA’s definition of a small business “varies by industry, but a small business is a business with fewer than 1,500 employees and up to $ 38.5 million in average annual revenue.”
If 1,500 employees and $ 38.5 million in sales seem like a business to you, but more than a “small” business, you are not alone.
Hey $ FUBO with your post dilution market cap of $ 5 billion, maybe you could consider paying off that $ 4.7 million PPP loan you took out? I know restaurants and gym owners who really need the money pic.twitter.com/JVN9Uo2fzv
– The Friendly Bear (@FriendlyBearSA) December 11, 2020
@DGodfatherMoody Several racial groups received large P3 loans, Richard Childress RCR Enterprises $ 6.33 million; Chip Ganassi Racing $ 3.96 million; Andretti Autosport $ 2.3 million; and Roush Fenway Racing $ 3.5 million. Total abuse of funds for small businesses by millionaires.
– Russell J. Shaw (@ CWV09) December 8, 2020