US Treasury Secretary Calls Out Lakers for Taking Small Business Loan

The Los Angeles Lakers again made headlines this week, but it's sadly not for a highlight dunk or a league-altering transaction. This time, they were called out by the United States Treasury Secretary on live television.

On Tuesday morning, Secretary of the Treasury Steven Mnuchin appeared on CNBC's "Squawk Box" to discuss the federal government's Paycheck Protection Program (PPP), which was created last month to help support small businesses with loans during the coronavirus pandemic.

When discussing larger companies who applied to the program despite its intentions, Mnuchin brought up one surprising name that claimed $4.6 million in relief funds: the Los Angeles Lakers

A world-renowned brand like the Los Angeles Lakers are not what you or I would consider a "small business." The Lakers are valued at over $4 billion by Forbes, which explains Mnuchin's frustration over their application.

The Lakers, as well as other successful businesses like Shake Shack and Autozone, applied for loans through the PPP. This news comes in contrast to the recent positive press the Lakers had been getting for moving to have higher paid employees forego some of their salary to support arena workers.

Notably, Mnuchin pledged that any loan over $2 million through the Paycheck Protection Program will be audited by the Small Business Adminitstration before becoming official.

The Lakers, along with a number of other organizations, did eventually return their loans to the federal government, likely due to public pressure and that looming loan review.

Of course, that doesn't stop this whole incident from being what it is: a bad look for the LA Lakers.