"Expansion is an economic question for the league's existing 30 owners. At what point does the math make sense to where it becomes worth it to go from owning 1/30 of the league to 1/32? NBA teams currently own 3.33% of the league. If the league jumps to 32 teams, that percentage drops to 3.13%."
"So why would the owners do it? Because, at some point, the math tips in their favor if the expansion fees -- which aren't shared with the players and go straight into the owners' pockets -- get big enough. With team valuations skyrocketing in recent seasons, including the Los Angeles Lakers selling for $10 billion last year, the realistic numbers the NBA could expect to pursue in expansion has risen along with it."
The NBA is progressing toward expansion after Commissioner Adam Silver reopened the discussion in December 2020. The league plans to vote on adding Seattle and Las Vegas as franchises beginning in the 2028-29 season. Expansion represents an economic calculation for the 30 existing owners, as their ownership stake would decrease from 3.33% to 3.13% of the league. However, owners support expansion because the fees generated—which are not shared with players and go directly to owners—become economically advantageous when large enough. Rising team valuations, exemplified by the Lakers selling for $10 billion, have increased realistic expansion fee expectations significantly.
#nba-expansion #seattle-and-las-vegas-franchises #league-economics #ownership-stakes #expansion-fees
Read at ESPN.com
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