NBA Expansion Nearing Reality as Cities Vie for New Teams
For over two decades, the National Basketball Association (NBA) has operated with a consistent roster of 30 teams. But as momentum builds for expansion, it's becoming increasingly likely that the league will soon welcome new franchises into its fold. The future may not have arrived, but it’s rapidly approaching.
Expansion on the Horizon
Expansion discussions have become commonplace, with two cities standing out as frontrunners: Las Vegas and Seattle. Both cities boast state-of-the-art arenas—T-Mobile Arena and Climate Pledge Arena, respectively—and have shown strong market support. Seattle’s potential return to the league is particularly sentimental, seeing as the city was the beloved home of the Supersonics for over four decades.
Aside from sentimental ties and compelling infrastructure, these cities also present significant financial potential. Recent NBA franchise sales have placed the valuation of teams at $3 billion or more, with Mat Ishbia’s purchase of the Phoenix Suns setting a record at $4 billion. In such a climate, potential expansion fees could soar, with projections of $4.5 billion for each new team. This windfall would net existing team owners a significant financial return of $300 million each in expansion fees, although these fees are not considered basketball-related income.
Impact of Expansion
The addition of new teams brings more than just financial benefits. Expansion would create 30 additional full-time roster spots, alongside six more two-way slots, giving more players an opportunity to shine on one of the world’s biggest basketball stages. For expansion teams, roster building primarily occurs through an expansion draft where they are granted certain predetermined slots and existing teams protect a limited number of players. Moreover, typical labor agreements, which only recently culminated in 2023, would ensure that these teams operate under a constrained salary cap for their first two seasons.
Should expansion occur, roster alignments may also see shifts as teams like Memphis, Minnesota, and New Orleans might transition to the Eastern Conference, helping balance the league geographically.
International Aspirations
Beyond Las Vegas and Seattle, the NBA's aspirations extend internationally, with Mexico City being a noteworthy consideration. The city’s Arena Ciudad de México has a seating capacity of 22,300 and has hosted 32 NBA games since 1992, showcasing its capability as a potential NBA city. Other domestic cities, like Anaheim, Kansas City, and Louisville, also remain in the conversation, each with their own appeal and infrastructure to support an NBA team.
New Revenue Streams on the Horizon
Expansion isn’t just about adding numbers; it’s about growth and the promise of new media deals that inevitably follow labor agreements. With the NBA recently finalizing its labor agreements for 2023, attention will likely shift to negotiations that can further elevate the league's global reach. The entrance of new teams can spur fresh media rights opportunities, capitalizing on untapped markets and fanbases eager for NBA basketball.
While the ink might not yet be dry on any contracts, and while specific timetables remain uncertain, the conversations surrounding NBA expansion are gaining more serious traction. For a league that hasn’t introduced a new team since the Charlotte Bobcats joined in the 2004-05 season, the allure of a groundbreaking expansion bringing new cities, teams, and fans into its fold makes for an exciting prospect. The basketball world waits eagerly to see how this burgeoning narrative unfolds.