Adam Silver calls reported $2.5 billion target fee for expansion ‘very low’ compared to what NBA would want

NBA expansion appears more realistic than ever because of the revenue lost to the Covid-19 pandemic. Adam Silver has acknowledged the possibility, and it is a sensible one given the NBA’s current financial situation.

Brian Windhorst of ESPN reported that the league could charge a $2.5 billion expansion fee, making $5 billion in total if the league jumped from 30 teams to 32. Divide that among 30 teams, and each would receive an immediate payment of $166.7 million but Silver seems to think that the league can do better.

In Sportico’s valuation event on Tuesday Silver suggested that the league would want even more than has been reported. He said it “doesn’t feel like the right time” to focus resources or attention on future growth with the league still trying to navigate the pandemic. But Silver did say that “clearly [the] valuations [show] some of the reported numbers [for expansion fees] are very low in terms of the value at which we would expand.”

Silver’s comments are exactly what the seller should say, hoping to increase the buy-in price for a new team. The market may have different ideas.

- Advertisement -720x200

Most importantly, that means less TV money for all existing teams. In the short term, $166.7 million would be extremely helpful. In the long term, The existing ownership groups would wind up losing far more than that in terms of their share of national television revenue. The league’s current deal with ESPN pays out $2.6 billion per year. This is around $86.7 million per team but would decrease to $81.3 million if divided among 32 teams.

Advait Jajodia
An experienced sports content writer. A national-level basketball player and a huge sporting enthusiast.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Related Articles

Stay Connected


Hot Topics


Latest Articles


All the upcoming Indian Web Series in March 2021

As the situation is under control so many new Indian web series are going to launch in March.  The OTT platforms have tried their...

Top 10 most valuable player in the world in 2021

Transfer window has reopened for the month of January already. CIES Football Observatory has released the list of most expensive players of the world. Here...

Lenovo Legion 5 Pro with up to AMD Ryzen 7 5800H & RTX 3070 available in Germany for €1,799

Lenovo's Legion gaming laptop series is exceptional for professional and casual gaming; among them, the Legion 5 model is one of the most "value...

How to watch the Bundesliga 2020-21 season in India after Star Sports ends deal?

Star Sports has been the exclusive broadcaster for the Bundesliga matches live in India. Star Sports and Bundesliga had been negotiating for a renewing...