COVID-19 impact on (Seattle) Expansion
Posted: Sat May 16, 2020 8:21 pm
The lasting impact of COVID-19 on league revenue is yet to be fully realized. The salary cap will almost certainly be reduced next season and beyond with players losing the opportunity for larger contracts as overall revenue diminishes.
Until a vaccine is created the arena experience will severely limit profitability and growth. The NBA generates most of its profits from its media rights packages (Turner, ABC/espn, and local tv) anyway. If this trend continues would not it make sense for the league to expand by 2 franchises NEXT season and renegotiate their media rights package (if possible)?
Hear me out:
IF the DELAYED 2020-21 season is played next spring without fans in the arena, then these two new franchises games would be televised from a remote location anyway. The Franchise Fees are expected to be at least 1.5 Billion dollars. As I understand it, these franchise fees do not impact overall cap revenue and would only be a one time injection of cash into the Owners pockets. This could add close to a hundred million to a struggling franchise Owner who's business may be impacted by COVID-19. The negative would be this would add two new teams to split the media rights package moving forward. The players association could take credit for adding 24 new players and countless g-league jobs.
I understand the tremendous timing constraints of accomplishing this task. However, COVID-19 has completely wiped out the traditional league schedules and next season draft could be delayed far into the fall/winter. Depending on when the league decides to begin the 2020-21 regular season and especially if the league decides to televise games without fans in attendance, this could potentially be accomplished before next summer.
Some Questions:
Do you believe the owners will utilize a potentially $1.5 billion dollar franchise fee (X 2) as a way to inject cash into struggling franchise owners pockets?
Do you believe the Players Union would potentially negotiate 24 new members taking a cut against the cap?
Does the rumored Force Majeure clause allow for a scenario where the League could renegotiate media rights (if it added 2 new franchises?
Would the players association be interested in adding 24 new players?
What would the salary cap impact of those jobs be on the G-league as well as the Association as a whole?
Would the league be interested in creating the content surrounding protecting players from expansion drafts and franchise construction debates?
Would there be an appetite to water down the talent while fans aren't able to attend in person?
GAMBLING MONEY---2 new teams to take a Rake.
How unrealistic or overly optimistic is my timeline?
What negatives have I left out?
The NBA is currently in uncharted territory. With all this uncertainty created by the COVID-19 pandemic The Association should use this golden opportunity to right the Seattle wrong, Create 2 new Franchises.
Resurrect the SEATLE SUPERSONICS!
Please be aware this tread is about EXPANSION and NOT RELOCATION. Seattle does not want to discuss your team moving.
Join me in this Fight!
-Splifton
Until a vaccine is created the arena experience will severely limit profitability and growth. The NBA generates most of its profits from its media rights packages (Turner, ABC/espn, and local tv) anyway. If this trend continues would not it make sense for the league to expand by 2 franchises NEXT season and renegotiate their media rights package (if possible)?
Hear me out:
IF the DELAYED 2020-21 season is played next spring without fans in the arena, then these two new franchises games would be televised from a remote location anyway. The Franchise Fees are expected to be at least 1.5 Billion dollars. As I understand it, these franchise fees do not impact overall cap revenue and would only be a one time injection of cash into the Owners pockets. This could add close to a hundred million to a struggling franchise Owner who's business may be impacted by COVID-19. The negative would be this would add two new teams to split the media rights package moving forward. The players association could take credit for adding 24 new players and countless g-league jobs.
I understand the tremendous timing constraints of accomplishing this task. However, COVID-19 has completely wiped out the traditional league schedules and next season draft could be delayed far into the fall/winter. Depending on when the league decides to begin the 2020-21 regular season and especially if the league decides to televise games without fans in attendance, this could potentially be accomplished before next summer.
Some Questions:
Do you believe the owners will utilize a potentially $1.5 billion dollar franchise fee (X 2) as a way to inject cash into struggling franchise owners pockets?
Do you believe the Players Union would potentially negotiate 24 new members taking a cut against the cap?
Does the rumored Force Majeure clause allow for a scenario where the League could renegotiate media rights (if it added 2 new franchises?
Would the players association be interested in adding 24 new players?
What would the salary cap impact of those jobs be on the G-league as well as the Association as a whole?
Would the league be interested in creating the content surrounding protecting players from expansion drafts and franchise construction debates?
Would there be an appetite to water down the talent while fans aren't able to attend in person?
GAMBLING MONEY---2 new teams to take a Rake.
How unrealistic or overly optimistic is my timeline?
What negatives have I left out?
The NBA is currently in uncharted territory. With all this uncertainty created by the COVID-19 pandemic The Association should use this golden opportunity to right the Seattle wrong, Create 2 new Franchises.
Resurrect the SEATLE SUPERSONICS!
Please be aware this tread is about EXPANSION and NOT RELOCATION. Seattle does not want to discuss your team moving.
Join me in this Fight!
-Splifton