The NBA is officially ready to take a deeper look at expansion.
Commissioner Adam Silver said Tuesday the league will now conduct an “in-depth analysis” into adding new franchises, calling it “a significant step” in what has been a long-running discussion among owners.
“I think there is a significant step now in that we are now engaging in this in-depth analysis, something we weren’t prepared to do before,” Silver said after the league’s board of governors meeting in Las Vegas (via the Associated Press). “But beyond that, it’s really Day 1 of that in-depth analysis. And so, in terms of price, potential timing, it’s too early to say. … It is truly a complicated issue.”
The analysis will be led by the advisory finance committee, with support from the audit and strategy committee.
The league has not set a timeline for the process, nor decided on expansion fees or when new teams could potentially begin play, the Commissioner acknowledged.
“For every team you add, you’re diluting the economics of the current league,” Silver said. “There’s no question that those purchase prices have an impact on any economic analysis of teams, so it doesn’t necessarily complicate it more, but it certainly is an indication of value. And one other factor we have to look at: we’re trying to think what is the value of expansion, what does it mean to dilute the existing equity, and how additive is this potentially to the league by adding an additional team.”
Las Vegas and Seattle continue to be viewed as frontrunners if the NBA expands beyond its current 30 teams.
“It’s an incredible market,” Silver said of Seattle. “I wish, standing here as the commissioner, I had lots of teams to dispense to many different markets who are interested in NBA basketball. I just think that we also have this greater obligation to expand, if we do so, in a very deliberate fashion and in a way that makes sense holistically for the league.”
The league’s next board of governors meeting is expected in September.
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