Well, with the Cash Loans you will be getting certain amount of cash. It has nothing to do with the interest rate of teams in the deficit. What I'm proposing is introducing a financial instrument known to mankind since 14th century. Businesses (including basketball teams) use such instruments regularly. Nothing new there. Let me give you two examples where some would find this instrument very handy:
- Say you have $100k in the reserves, you are targeting a transfer of a player who is $150k, but the transfer deadline is before your next home game. You can never bid on the player in the current system. However, if you had the option to take a loan, you will be able to place a bid on the player. You have two Mondays to figure out how to sort your expenses, whether you will sell/fire some players, fire staff members etc. It's up to you.
- Your team got promoted. You know you will sell out your current somewhat small-ish arena and will be making more money in your next weeks. But you can't invest on arena upgrade more cash than you currently have in the cash reserve. You wish you had more money than the promotion bonus to add more seats earlier in the season. With the Cash Loans you would.
The proposed interest rate of 50% may sounds harsh. Would you be interested in the Loan system if they were say 30%?