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NBA Owners Budgeting For Two Expansion Fees

3 weeks ago 14

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NBA teams are budgeting for expansion fee payouts from two new franchises, which adds pressure on the league to expand to Seattle along with Las Vegas, ownership sources told ESPN. Each team is expected to receive a distribution of $500 million to $600 million.

One team ESPN spoke to is planning around $533 million. Teams have been preparing for the money for some time, whether for roster spending, arena upgrades or paying down debt. Without a Seattle team, each franchise would receive hundreds of millions of dollars less than expected.

Commissioner Adam Silver is fully committed to Las Vegas, and a decision on the winning bid there could come within weeks. But Silver has not promised the league will add two teams at once. At last month's board of governors meeting, he left owners with the impression that Seattle was no longer a sure thing with Mexico City floated as an alternative.

The league is not satisfied with the Seattle bids, sources said. There are two known bidders, led by a group headed by Seattle Kraken and Climate Pledge Arena owner Samantha Holloway. Their offers are far below what the Las Vegas bidding war is producing, which could exceed $10 billion.

Stopping at 31 teams would also create problems. The NBA had an odd number of teams from 1980-81 through 2003-04 when the Charlotte Bobcats were formed, but the NBA Cup did not exist then. A 31-team tournament would require a new format.

The NBA added teams in pairs in 1988, 1989 and 1995. The SuperSonics played in Seattle from 1967 until moving to Oklahoma City in 2008.

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