NBA Launches Expansion Analysis With No Predetermined Outcome, Timeline
NBA commissioner Adam Silver announced Tuesday that the league will conduct comprehensive expansion analysis following board of governors discussions. Two existing subcommittees will lead the research process, though Silver emphasized no predetermined outcomes or specific timeline exist for potential franchise additions.
Silver described the board's tone as one of "curiosity" regarding expansion beyond the current 30 teams. The advisory finance committee and audit and strategy committee will collaborate on the analysis, examining both economic and non-economic factors.
"A consensus quickly formed that the league office should do the work and work with these particular committees and the board and present that analysis," Silver said.
The expansion study will examine how adding franchises would impact revenue distribution, particularly from national television deals. Silver compared the process to selling equity in a business, noting the complexity of diluting existing team economics while projecting future league growth.
Recent franchise sales, including the Boston Celtics' pending $6.1 billion transaction, factor into economic valuations. Silver acknowledged these purchase prices impact expansion analysis without necessarily complicating the process.
"We would be malpracticing if we didn't figure out how local regional television is going to work before expanding," Silver said.
The analysis will evaluate specific markets, facilities, and local appetite for NBA basketball. Silver highlighted concerns about talent dilution across two additional rosters and the uncertain future of local television deals for teams.
Seattle remains a prominent candidate after losing the SuperSonics to Oklahoma City in 2008. Silver called Seattle "an incredible market" while emphasizing the need for deliberate expansion decisions.
"I wish, standing here as the commissioner, I had lots of teams to dispense to many markets who are interested in NBA basketball," Silver said.
The NBA last expanded in 2004 with Charlotte's franchise addition. There are a number of existing owners who are skeptical of expansion due to the need to split national television revenue with two additional partners.