When the NBA was formed in 1946 there were originally 11 teams. Since then, throughout the years, there have been multiple expansions to finally get to 30 teams at the moment.
However rumors are getting louder about adding another 2 teams to the league,
so let’s break down what actually happens when a new team enters, how do they get players, and all the effects that it has on the association. What up everybody, my name is Stefan and this is Heat Check. Let’s get into it.
First of all let’s see how expansion rosters are constructed. When a new team enters the league, they get to pick a player from the other NBA teams. This is called an expansion draft.
But of course, since everyone would love to pick Lebron, KD, Curry, Harden and similar superstars, every team gets to protect a certain number of players. With the arrival of the Charlotte Bobcats in 2004, that number was eight.
Though there may be some changes, that was the system used 17 years ago. As you’d expect, the so-called unprotected players aren’t especially good. Yet, there have been situations in which expansion teams got their hands on guys like Gerald Wallace (the Bobcats in 2004), B.J. Armstrong (Raptors in 1995), and Rick Mahorn (Timberwolves in 1989). What’s ironic is that both Armstrong and Mahorn refused to report and were subsequently traded away.
The Mahorn situation was especially emotional. The bruising big guy had just become a champion with his Pistons. Yet, because of their depth, Detroit left him unprotected and he was therefore selected, like we said, by Minnesota. It was a decision that puts tears on his face to this day.And we cannot talk about expansion drafts without mentioning this trivia. In 1988, the Lakers sent a second-round pick to the Heat who were the new team entering the league back then in an agreement that Miami wouldn’t select one of the greatest players of all time, Kareem Abdul-Jabbar, in that year’s expansion draft.
Los Angeles kinda forgot to protect the centre focusing their attention on some younger players.
Now, back to the rules - expansion teams also have picks in the actual NBA Draft. However, there are no fixed criteria as to where they select in their first seasons in the league. The Vancouver Grizzlies and Toronto Raptors selected numbers 6 and 7, respectively, in 1995, while the Bobcats had the fourth selection, though they traded up to number 2, getting Emeka Okafor. These picks were not awarded in the lottery, but were given out by then-Commissioner David Stern.
When it comes to the salary cap issue, the league places a limit on how much expansion teams can spend. That is done to protect the rest of the NBA from being outbid easily in the fight for free agents. In its first season, an expansion team can use only 66.7% of the cap, while the figure rises to 80% in Year 2. In the third season, the full salary cap is available.
And having understood the actual mechanics of forming an expansion roster, we can now look at why owners would love this to happen soon, as well as all the pros and cons of a yet another expansion.
The main reasons why current owners would support expansion is, of course, money. According to Brian Windhorst the price tag is around $2.5 billion each for two expansion teams in the near future. Unlike other major revenue streams such as TV and ticket money, expansion fees are not split with players. That could mean about $160 million per team, a boost that could wipe out the massive debt load that’s piling up for owners, especially during Covid.
Now, for the most serious candidates that have been mentioned in terms of expansion even before the start of the pandemic, and especially since the outbreak.
They are Seattle and Las Vegas.
Seattle is the obvious choice, especially considering the rich basketball history that it already has. Also a loyal and supportive fanbase, and the size of the city as well. Even Silver himself has mentioned that.
When it comes to Vegas, let’s just say it was not a coincidence that the league had its All-Star Weekend there in 2007. Also, in December of last year, the mayor of Las Vegas said she’d spoken with Silver and they both agreed that this would be a nice fit.
Cities such as San Diego, Louisville, Kansas City, and Pittsburgh must be mentioned in this discussion as well.
As it pertains to the effects, a couple of things. A new market adds very little value to the NBA from a TV product standpoint since the ratings are primarily driven by big-market franchises and the playoffs, which are not changed. However, since national TV revenue is shared evenly among all teams, the new market gets part of the pie every other team would be entitled to even without creating more money. Other revenue streams are impacted similarly, but TV is what’s most important.
It’s like angel investors buying stock in the NBA as a whole. While it infuses much-needed money into the business right away, the long-term earnings for any previous investors are spread out.
13 июн 2024
