May 14, 2009 4:11 pm US/Eastern
Heat Announce Layoffs Due To Recession
MIAMI (CBS4) ―
Despite having tens of millions of dollars to pay players, NBA teams are having to make layoffs to deal with the ongoing recession. The Miami Heat is the latest team to make cutbacks to parts of its staff to help make ends meet. The total number of layoffs will be around 20, according to the South Florida Sun-Sentinel.
Heat team president Eric Woolworth said in a statement that the team had eliminated a small number of positions, but wouldn't give an exact number.
"The Heat Group and its employees remain focused on delivering a quality experience to guests and sponsors," Woolworth said in his statement.
Employees who were laid off Wednesday will receive a severance package and be eligible to be rehired.
At least 12 teams have been loaned between $13 million and $20 million during the 2008-2009 season to help their bottom lines. NBA commissioner David Stern told teams they would have to change the current business model many teams currently utilize.
The Heat is not alone in having to shed staff to meet the economic reality that most businesses are facing. The Sacramento Kings announced similar cuts to staff in the past week.
None of the planned cuts were inside of the basketball operation. The Heat has committed $69.7 million for the 2009-2010 season in player payroll. That number doesn't include any of the players who might become free agents like Jamaal Magloire and Jamario Moon.
(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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