The Dallas Mavericks were sold for less than that at $285 million only four years earlier despite existing in a stronger market, and the Boston Celtics, one of the league's crown jewels, fetched only $360 million in 2002. Just a matter of time. There is also the question of interest. Adding a new market adds very little value to the league as a nationally televised product because the primary drivers of ratings, such as the existing big-market teams and the postseason, remain unchanged. And already, grassroots efforts are underway in Kansas City and Louisville to position their cities as possible landing spots for the NBA. Where those teams fall geographically means quite a bit. Any player left unprotected could then be drafted by the expansion team, but no existing NBA team can lose more than one player. But because national television revenue is shared evenly among all teams, those new teams cut into the income every other team would generate even if they aren't creating more of it. It also comes with more risk than literally any city that any North American professional sports league has ever expanded into. He is going to be fine. Kansas City is pushing hard to land an NBA league expansion, hoping it will return after the Kansas City Kings were relocated to Sacramento, Calif. in 1985. NBA commissioner Adam Silver said recently the league may dust off long dormant expansion plans, igniting prospective cities and ownership groups. The simplest way to view expansion, from an economic perspective, is to think of it as the sale of a team that does not exist yet. In an expansion team's first season, it can use only 66.7 percent of the cap, and in its second, it can use up to 80 percent of the cap. The first is the redevelopment of KeyArena. If the league remains squeamish, especially after diluting its revenue, it could add extra games against divisional opponents, or even some form of flexible scheduling to accommodate either a play-in or mid-season tournament. Las Vegas: So far, professional sports have flourished in Vegas. The last three teams that have changed hands were sold at market-shattering prices. All Rights Reserved. It needs to either have an NBA-ready arena or the willingness to build one. It cut player salaries by 25 percent for the time being, but that measure is temporary, and even with escrow withholdings and the force majeure clause, it is unlikely that teams will be able to shave enough expenses to offset the massive losses they are currently sustaining. It is the second-biggest American market without a team right now (behind only Tampa Bay). Seattle's other major advantage? The Los Angeles Clippers and Houston Rockets both sold for at least $2 billion, but perhaps more telling was the $850 million price that the Atlanta Hawks garnered in a relatively modest NBA market. The Golden Knights have thrived in T-Mobile Arena (which an NBA team would presumably share), and the Raiders are about to move into a state-of-the-art new stadium. It’s at least possible someone could pay $2.5 billion to own a team in one of those markets. Louisville, Kentucky. Fortunately, even if the league did decide to expand without communicating with the union, there are several benefits for players who wouldn't have to be collectively bargained. Kansas Legislature should follow Kelly’s lead on medical marijuana, Medicaid expansion By The Kansas City Star Editorial Board February 01, 2021 03:43 PM While the minimum salary is predetermined, a lowered cap limits financial upward mobility through common sense. Why? The two sides will have to work closely together on a number of issues over the next several years. But necessity is the mother of invention, and it cannot be argued how badly the NBA needs cash right now. That impacts players at every level. Gerald, representing the Seattle Sea … While there have been some notable hiccups, revenue continues to rise annually. A fully unilateral decision to expand likely wouldn't be well-received. Seattle is by far the most likely destination, but the second city is more open – Las Vegas, Kansas City, Louisville, Mexico City and more. Harden is one of the very few players in the league that will find a way to s… Pour autoriser Verizon Media et nos partenaires à traiter vos données personnelles, sélectionnez 'J'accepte' ou 'Gérer les paramètres' pour obtenir plus d’informations et pour gérer vos choix. Kansas City. NBA expansion is looking more likely for the NBA, as owners who lost billions during the pandemic are looking for new revenue sources. Expansion teams tend to serve as roadkill for their contending counterparts. Its status as a tech hub, led by Amazon. Kentucky has two of the best college basketball schools … That math falls apart with two more teams. Vegas is a relatively small market, beating only New Orleans, Memphis and Oklahoma City in size, but it draws such massive tourism traffic under normal circumstances that filling an arena likely wouldn't be a problem. The city has a top-notch arena in the Sprint Center just waiting to be filled. If the NBA is desperate enough, those negotiations could be expedited, but there is no guarantee. If one of those cities doesn't want to play ball on a new arena, the NBA can merely point to what happened to Seattle as proof that it isn't bluffing when it threatens to move a team. Kansas City officials put on full-court press to bring NBA in 2020-21 Courtesy T-Mobile Kansas City's Sprint Center will now be called the T-Mobile Center because of the company merger taking place. It would be unfair to one conference if the other had fewer competitors, therefore, any expansion plan likely has to account for two new teams. It’s a real thing I’ve heard from multiple sources. As the former home of the Kings, Kansas City already has an NBA history, Young notes, and Mayor Quinton Lucas gained the league’s attention when he offered to serve as a temporary location for the Raptors. Paris, France. Players don't technically have a say in the decision to expand, but they hold an unusual amount of leverage at this particular moment. Jan 8, 2021, 9:20am EST The National Basketball Association reportedly is considering the addition of two expansion franchises, reigniting the … As we'll discuss, most of the best expansion markets would make more sense in the Western Conference. The Bobcats had the No. There's also valuable optionality in having more markets in the league. The 19,000-seat T-Mobile Center is already in place to house an expansion franchise, but there’s no obvious person to bid for the team. Why Austin? A territory that has been casually divided among the Bulls, Pacers, Grizzlies and Thunder could belong to a Kansas City expansion team. Some owners can weather this storm. If Seattle gets a team back, what would stop any other city from assuming it could lose a team and get it back down the line as well? The NBA is discussing the possibility of expansion. Remember that slight inflation of market value I mentioned earlier? Harden’s game may not be too fun to watch for other fanbases, but there’s no denying that the man controls the game when he’s got the ball in his hands. Note the past tense of the word "planned," there, because nothing wrecks plans quite like pandemics. But for every benefit, there is a major concern. Finally, we need to address the cap. From a report in May 2018, Jarrett Sutton of the SEC Network cited an anonymous NBA executive. The league already nearly doubled its line of credit. These are merely suggestions. If, for instance, the idea of cutting games out of the regular season gains any traction, teams could theoretically play each of their non-conference opponents twice and each of their conference opponents three times. James Harden – Oklahoma City Thunder – 2009 When you’re one of the top candidates for MVP for five out of the last six years, it’s pretty safe to say that you’re a hit. While the union would not have the power to demand concessions upon the immediate formation of expansion teams, it could negotiate its way around some of these hurdles. Obviously the coronavirus pandemic's impact on the global economy has been pronounced, but the complications surrounding expansion pricing extend further than that. Informations sur votre appareil et sur votre connexion Internet, y compris votre adresse IP, Navigation et recherche lors de l’utilisation des sites Web et applications Verizon Media. Découvrez comment nous utilisons vos informations dans notre Politique relative à la vie privée et notre Politique relative aux cookies. The NBA had trouble convincing players to move to Vancouver. Both allow players to earn above their designated max by reaching certain criteria. It infuses cash into the business immediately, but dilutes the long-term earnings for any previous investors. If the average salary declines, the NBA could offset some of the lost Mid-Level salary by raising the ceiling on other forms of the exception, such as the Tax-Payer- and Cap Room-Mid-Level Exceptions. Not every owner is so fortunate. Which brings us back to the league's commitment to a 30-team model. There's also the prospect of realignment. CBS Sports is a registered trademark of CBS Broadcasting Inc. Commissioner.com is a registered trademark of CBS Interactive Inc. site: media | arena: nba | pageType: stories | The city of Kansas, Missouri has remained dormant for way too long, it’s time that they got their shine in the NBA. They certainly wouldn't settle for those early-decade prices, but buyers wouldn't be willing to pay the premium that Steve Ballmer (Clippers) and Tillman Fertitta (Rockets) did, either. They account for an estimated 40 percent of league revenue. The NBA is absolutely bleeding right now. A new team would have no trouble filling its luxury boxes, and while Chris Hansen would be viewed as the heavy front-runner to lead an ownership group, Seattle has so many billionaires in and around the city that the NBA could potentially drum up something of a bidding war for the right to revive the Sonics. Filling in the best available markets takes them off the board as leverage. If a team can succeed in Canada, then theoretically, it could succeed in Mexico. Put more simply, adding teams lowers the cap. Were the NBA to seriously entertain expansion, the earliest possible timeline would have new teams playing by the 2022-23 season. In this exercise, every team in the NBA is allowed to protect a certain number of its players (in 2004, it was eight). First, just no. NBA Executive: “Jarrett, going to be real honest with you, Kansas City will get an NBA team at some point. It has been a 30-team league for almost two decades, and if Adam Silver is to be believed, it planned to remain a 30-team league for the foreseeable future. Comparing Louisville to Vancouver, in terms of talks over NBA expansion franchises, is just not fair to Louisville. Seattle was not willing to invest in a stadium in 2007. The downsides, though, are potentially significant. The NBA may never have faced more desperate times than it is now, and if it is seeking a desperate measure to compensate, expansion is by far the best one available. With apologies to Pittsburgh, Anaheim, Louisville and Virginia Beach, these are the four cities that check the most boxes for the NBA: Seattle: The city that the NBA left over a decade ago is the one it could potentially return to now for two main reasons. It’s … It has a fairly new arena that has hosted NBA games before (albeit with some incidents, including a fire in 2013). In its third season, an expansion team has the entire salary cap at its disposal. If the NBA is willing to be flexible on the number of teams it puts on the floor, expansion could solve many of its short-term financial issues. Kansas City is one of the most underrated sports cities in this country. What's the harm in losing a team if you can just get a new one in a decade or two? Teams will always prioritize spending their space on better players, so cutting into cap space would likely force lower-level players to accept minimum deals more readily because there just wouldn't be space available. Adding new teams does not expand the existing player pool, so more teams wind up sharing the same amount of talent. Houston's Tilman Fertitta needed to take out a $300 million loan at a 13 percent interest rate just to keep his restaurant empire afloat, and his purchase of the Rockets in the first place already left him heavily leveraged. Mexico City: The ultimate wild-card in any expansion talks. Players see none of it, and they have no say in whether or not the league can expand. Yahoo fait partie de Verizon Media. Broadly speaking, a city needs to hit a few important checkmarks in order to interest the NBA. At that price, each team would get a $50 million payout to do with what they saw fit. Louisville is 1.2 million. Expansion teams also have picks in the actual NBA Draft. Kansas City, Missouri There’s an empty spot on the NBA map between Oklahoma City and Minneapolis. Yes, the state of Kansas supports its Jayhawks, but the Kings spent over a decade in Kansas City without making much of a dent. 6-keys: media/spln/nba/reg/free/stories, at Seattle fans have made it perfectly clear that they want a team back. 9:24 am ET, Harden as a facilitator has propelled Nets' offense, Rookie Rankings: Ball shines in starting lineup, NBA DFS picks, Feb. 5 lineups, stacks, advice, Warriors unlock Draymond, Oubre with small lineups, Clippers vs. Celtics odds, picks, simulations, Nets vs. Raptors odds, picks, simulations, Warriors small lineup unlocks Green, Oubre, Rookie Rankings: Ball shines as a starter, Star Index: Kyrie lets play do the talking, LeBron calls All-Star Game decision 'a slap in the face', Lakers shuts down Nuggets as Horton-Tucker shines, NBA All-Star voting: Durant, LeBron collect most votes, Fox: NBA holding All-Star Game this year is 'stupid'. That deviation creates opportunities for different sorts of players to get paid. Even now, it makes sense to characterize this scenario as "unlikely." Kansas City: Another fairly small market, but a potentially valuable one. Kansas City also has a rich basketball history that the NBA could lean on when marketing the expansion team. Vegas made perfect sense a year ago. It needs to be a certain distance away from other NBA markets so as not to impede on their territory. Missouri has a few big ones in its backyard such as Sprint and Anheuser-Busch, but it trails significantly behind Seattle and the Vegas casinos in that way. KC has hosted an NBA team in the past and has the T-Mobile Center in the heart of downtown. The NBA could put expansion franchises practically anywhere. Four years earlier, the Philadephia 76ers fetched only one-third of that price at $280 million with a nearly identical metro population and more concentrated wealth. As the league is nothing more than the 30 teams that make it up, the sale price is split evenly among those 30 teams, and because it is not considered basketball-related income, the teams keep every cent of that money for themselves. For higher-level players, more teams equals more competition for their services, which theoretically drives up price. Mexico City would be an even tougher sell. Kansas City, Missouri is one of the largest media markets without an NBA franchise, and a larger TV market than current NBA cities Oklahoma City and New Orleans. Kansas City has a rich basketball history and housed the Kansas City Kings, which relocated to Sacramento, California, in 1985. That would put a total of 77 games on the schedule. Even given the current economic state of the world, interest is so great that the league would likely draw hefty fees. On paper, this is a slam dunk. According to Jarett Sutton of the SEC Network, the NBA could bring basketball back to Kansas City via an expansion in the near future. Inertia is the most powerful force in sports. The fans … Cover your ears, children; it's time for the dreaded "D" word. This would appear to be more of a concern under David Stern than it is under Adam Silver, but it's the only major hiccup in a potential Seattle bid. What they're doing seems to be working. Convincing 30 billionaires to try anything new is difficult because, well, they are already billionaires. The NBA is a 30-team league. The 1995-96 Chicago Bulls won 72 games, but did so at a point in which six new teams had been added to the league within the previous seven seasons. 11) without its own … When new teams are born, the NBA fills them with something called an expansion draft. NBA 2K20 : My League Expansion @ Kansas City #3 Blhite. Making it through this is going to require cash that the NBA may not have, or may not have the ability to generate through traditional means. Seattle appears to be a lock for one of the proposed two expansion teams, and Kansas City and Las Vegas are viewed as competing for the second one. To compensate, that could allow for a current Western Conference team to switch over to the East. After 11 miserable seasons without our beloved SuperSonics, the city of Seattle rejoiced Friday morning when NBA Commissioner Adam Silver announced the return of an expansion franchise. When finished, the new KeyArena will be able to support both an NBA and an NHL team. Leagues prefer to keep a deep stable of possible relocation markets in their back pocket to hold over their existing cities. It has a bigger population than New York, and a more densely populated one at that. If the pandemic stretches on without a vaccine, billions more could be lost in future gate and television revenue. The Kings played in KC in the 1970s and 1980s before moving to Sacramento. 6 and No. That means inevitable talent dilution. Two new teams mean 30 new roster spots and four more two-way slots to be filled. Expansion is a time-honored way for professional sports leagues to raise capital, so it’s no surprise that MLB types are quietly discussing expansion as a way to offset operating losses this year and last. Not only does that mean players have more cities to choose from in free agency, but it creates meaningful stylistic diversity. In 2018, a group of local businesspeople led by Michael Fortier have announced their intention of seeking investors for an expansion team. NBA expansion cities: Louisville. The city of Louisville is a top contender for an NBA team because they … Covering the impact of coronavirus on the sports world. While the $2 billion figure an anonymous owner gave The Athletic's David Aldridge in 2017 is likely far-fetched, it is not a stretch to suggest $1.5 billion as a starting point. The change of venue had been said to have been partly suggested by Jack Twyman and Dave Piontek, who were two of several roster … Armstrong, Rick Mahorn and Walt Bellamy stand out as some of the biggest names ever selected. Considering their lack of prior financial burdens, the NBA limits how much new teams can spend in order to protect the rest of the league from being easily outbid for free agents. The same could theoretically be said of Michael Jordan, as premium sneaker sales are likely to decline sharply as well. And then there's the matter of the schedule. Vous pouvez modifier vos choix à tout moment dans vos paramètres de vie privée. … section: | slug: nba-expansion-101-how-adding-new-teams-could-help-solve-leagues-current-financial-crisis-due-to-coronavirus | sport: basketball | route: article_single.us | Television. New teams do generate new revenue locally, but as we've discussed, have little value on the national stage, so while the league's total revenue would rise with expansion, it would not grow nearly enough to offset the damage of dividing that revenue among 32 teams rather than 30. Even if the league decided tomorrow that it wanted to expand, it would likely need at least a few months to find buyers, and then more than a year to integrate those new teams into the league. The Mid-Level Exception is based on the average salary in a given year. Minnesota and Memphis both make geographical sense, and moving one of them would cut down on travel time for both themselves and the rest of the league. 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