The NBA is considering possible expansion and will look more seriously at the idea once the league's new media rights deal is finalized, Commissioner Adam Silver said at a news conference in Las Vegas on Tuesday.
“We haven't completed our media deal yet, but once it is, we will look at expansion,” Silver said. “I have to say it can be a little more complicated than what's being suggested, because if you look at our most recent deal, for example, once that deal is completed, the value of it is diluted when we bring in a new partner. [the current teams]Sometimes expanding can look like you're printing money, but it's really no different than selling equity in your business. So I think it's going to take a fair bit of modeling from the league office, working with the existing owners, really looking at the long-term prospects. Again, not just from an economic standpoint. [there’s] Potential dilution of talent.”
Adding a team after a media rights deal would certainly dilute the revenue share that existing franchises receive, but the fact that it would still be considered is suggestive. Clearly, there is enough of a value proposition to evaluate the possibility of adding a team to the NBA.
It is unclear which cities will be candidates for expansion in this round of talks, but Athletic Seattle and Las Vegas have been mentioned as possible locations, but Mexico City, Montreal and Vancouver are also possibilities, he said.
