Pacers don't intend to take NBA loan

INDIANAPOLIS (WISH) - The struggling economy has already forced the Indiana Pacers to cut ticket prices, and they're not alone. To get teams back in the black, Thursday the NBA got a $200 million line of credit for teams to borrow.

NBA teams have been able to get loans for years from a special credit facility the league set up. The NBA said earlier this month -- at a time when it's hard for almost everyone to get a loan -- JP Morgan and Bank of America approached the organization, asking if teams could use an additional $200 million dollars in credit. The NBA's answer was yes.

In fact, 12 of the league's 30 franchises plan to borrow between $13 million and $20 million a piece. The NBA said there's no restriction on how the money is used. The teams will have to pay back the cash at around eight percent interest.

"The only thing I was surprised about was that they got the money," said University of Indianapolis Marketing Professor Larry DeGaris. "This expanded credit facility from the NBA is an indication they know they need to help teams as a league."

The Pacers aren't one of the 12 teams taking the additional line of credit, which is surprising since the team said it's lost money in nine of the past 10 seasons.

A Pacers spokesperson said the team has never borrowed from the NBA's credit facility because the team uses other banking means.

The NBA won't specify which teams have signed up for the extra money. But the Orlando Magic confirms it plans to tap into the new borrowing. Like the Pacers, the Magic said it's been operating at a multi-million dollar loss the past several years.

The NBA said it's not just the losing teams who are borrowing. Some heavy hitters are also taking advantage of the extra credit.