NBA expansion beyond 30 teams faces significant owner resistance as league governors prioritize collecting revenues from the new $76 billion media rights deal, according to multiple senior team officials. Seattle remains the top candidate for expansion, but momentum has stalled among ownership groups.
The reluctance stems from the league's massive 10-year media contract beginning next season with NBC, Peacock, Amazon Prime, ABC and ESPN. Several owners prefer splitting the new revenues among existing teams rather than adding franchises that would reduce individual payouts.
"There are people who are, I wouldn't say rethinking, but asking why we need to move as quickly as we expected," a senior team official told The Athletic. The official added that expansion will likely occur eventually, just not immediately as there is not currently overwhelming momentum.
Financial Considerations Drive Delay
Commissioner Adam Silver has softened public comments on expansion inevitability, citing the league's focus on processing the sales of the Boston Celtics and Los Angeles Lakers. The new media deal represents hundreds of millions in additional revenue per team over the contract's lifetime.
Adding two expansion teams within the next two years would significantly dilute national television revenue distribution. Teams collectively lost nine figures in revenue as regional sports networks collapsed, making the national media windfall more crucial.
"They want to see how the new TV money plays out next year," another senior executive said.
Seattle, Las Vegas Remain Top Markets
Seattle has been the frontrunner for a new expansion team since the SuperSonics relocated to Oklahoma City in 2008. Climate Pledge Arena was specifically built to NBA specifications and houses the NHL's Seattle Kraken.
Las Vegas also remains under consideration, with Oak View Group announcing plans for a $1 billion privately-funded arena. Expansion fees for either market are expected to reach $5-6 billion per franchise.
Silver acknowledged during June's Finals that expansion means "selling equity in the league" and depends on ownership's perspective of the NBA's future growth potential.