The Invasion- NBA Expansion

0:00Every day, excessive delays and denials from big insurers keep patients from accessing the care they need. And when care is urgent, these delays can be disastrous. These practices cost billions in wasteful spending, driving up costs for American families. But while big insurers put up barriers, America's hospitals and health systems are in your corner, navigating endless reviews and appeals to get you the care you need when you need it most. It's time to curb these harmful practices and put the focus back on patients. Brought to you by the Coalition to Strength in America's Healthcare. We got the news this morning that the MBA next week will hold a vote at the Board of Governors meeting to explore adding expansion teams exclusively in Las Vegas and Seattle with the target for these two new teams to begin play two years from now for the 2028-2029 season. This would be the first step in making this happen. They would approve the move.

1:02Then after that, you would have to take bids. They say that the proposals would be somewhere in the seven to ten billion dollar range per team. And they do estimate that both these markets, Las Vegas and Seattle would be among the MBA's top eight revenue generators, especially Seattle. And I think it's a shame when they moved that Seattle franchise to Oklahoma City and they haven't had one yet. But the one that still just blows my mind and we've talked about this before is Vegas. How that was there's no way we would ever put a franchise in Vegas gambling and sports. We can't have that. And then now it's blown up so much with a lot of these leagues profiting because of gambling. And now Vegas is a couple years away from having all big four teams, which is incredible, which ten years ago would have seemed impossible for that to happen. And now that's going to, man, I don't know how you feel about them.

2:03And I know you don't want to eat a ton of NBA, but it's about watering down the product and how it feels like 30 teams seems like a lot now with the, but the talent that they have. That two more that's going to spread it out is that going to dilute the product. We don't feel that way in football. I think maybe some people thought that was going to be the case in football. And now you don't even think about it hockey the same way. So maybe it's just not going to even be the case here in basketball and everything is just going to go. It just feels like all right, with these two expansion teams and especially with what they're going to go for, it just, it doesn't seem like basketball is right there as far as they're going to continue to grow and the revenue is going to continue to go up and up. It feels like the NBA is kind of hit a bit of a stalemate as far as growth, and money and eyeballs, unlike the NFL. And I'm not talking about the point that they're never going to catch the NFL. But when you start having an argument about, okay, so what's the second biggest sport? I think baseball may have a little bit to say about competing with the NBA as far as

3:07the second one with eyeballs and revenue and everything else. Yeah, if we're, if we're taking college football out of the equation, because the NFL and then coach will know that most, right. But yeah, the NBA would probably like to be a third, but I don't think it is. Yeah, I don't think it is either. And there does seem to be some hesitation because for this to go through, they need 23 out of the 30 current governors must vote in favor. And if you're still talking about eyeballs and money, then they'll have to say yes. Well, some say that they believe though it's a support expansion because of long-term revenue growth from the league from those markets in particular. But others say that they're hesitant because you'd have to sell some of their shares. League equity would go from one 30th to one 30th second. And they want to see the vinyl valuations on these bids to decide if now is the time to expand or should we wait a few more years down the road. Add in two more slices to the pie because you're getting less pie. Yeah. It's going to be, it feels like this is definitely going to happen.

4:07Adam Silver wants it to happen. It feels like those are two markets that make all the sense of the world, a special Seattle that I think would be more than robust in supporting that. And Seattle is for them not to have the NBA team. And of course, they got the crack in there in the NHL what five years ago, the Seahawks, obviously, that play there, the Mariners. So it makes a lot of sense that you would have a basketball team up there as well. Because that's a top 15 market. And they've got more than enough to support it. And the growth of Las Vegas, I don't think Las Vegas has looked at the same way that it used to be even in terms not, not necessarily the gambling, but in terms of market size. Right. Right. I still can't wrap my head around, you know, players, you can't do anything about it. But this league and these owners can profit from every single gambling source that's out there. But you can't because, you know, the ethics around it because you guys play the game. But no, no, no, we can profit from it. That's all good. And how you're going to have that big four there, you just see how the, no matter what you think about the product and the league and how far behind it is with the NFL, and

5:12it really is. But when you start talking about these franchises and the value of these franchises, they will continue to go up. Golden State right now is the second most valuable franchise in sports in this world right now, which is crazy. It is crazy to think about. And then when you have these teams that are being sold, 2022, they sold the Phoenix sons for four billion, and then Portland went for four and a quarter billion, and then of course, Boston went for six point one, and then the Lakers went for 10. So if you're talking about these franchises, getting those bits and it's going to be seven bid between seven and 10 billion to get the franchise rights for these cities, man. You have added two slices of the pie there. But if you're going to say that those two teams are going to come in, and immediately be top 10 as far as revenue goes when it comes to the, to the league, that's something that they'll, I don't think they can turn that down. No, you, you wouldn't turn that down. I didn't anticipate they'll expand.

6:13It'll be a couple of years like we're talking about because this would not be for the next year, even the year after that, 28, 29 down the road, it's going to water it down to some degree, just because you don't, I don't know that everybody believes there's enough talent to support the 30 teams that exist now. I know. So I was not going to happen when you've got to have 10 more starter caliber NBA players, plus 30 more guys that can actually play in the league. I'm trying to remember the last time they did this and how they handled that expansion draft. I'm pretty sure it was, you have the right and ability to protect seven eight players. I don't know the numbers. It was Charlotte no four. Right. 20 years ago's the last time they expanded. But it'll be like that. I would imagine, right? Where you go, all right, you got to protect however many and then they're going to draw from that. It'll also be because again, Las Vegas and Seattle, I don't know how well people know maps. Those are Western conference teams. Yeah. So that means that when they add to there that it looks like you would think Memphis makes the most sense. Minnesota, Memphis one of those.

7:13It'll be one of those two teams that's going to move to the Eastern Conference. And then the Mavs three years from now when they're being competitive, we'll get two brand new teams in their conference to beat up on. Yeah. And you know, you think about what hockey did and when Vegas golden nights came about, they got good really quickly, really quick and but insanely quick. Yeah. But it takes sometimes the NBA when they bring teams in, those teams are bad for a long time. Yes. And you would think or wonder that if you're going to have those two teams, new teams and have those franchises, they would want a little more parity than they've had before once they bring new teams in. So I wonder if they will handle that expansion differently because you don't want Vegas and Seattle to come in in 10 years from now, they've made one playoff appearance like they suck. No, you wouldn't want that. And then I'm trying to think off the top of my head, it was what was like five years in to Orlando when they made their run because they hit gold with drafting shack because of Orlando. Yeah. One's overall, right?

8:13Yeah. Yeah. Yeah. Yeah. With Chris Webber. Yeah. The only team that's had back to back number one in the lottery system and they traded Chris Webber and got penny hotaways. Right. Right. And you're right. Yeah. And that was, man, that was early on in that franchises. But even then like the first three, four seasons of their existence, they weren't any good. And you wonder with the NBA, there's so many things with the lottery now. If you have two new expansion teams, do you say, okay, you guys get a one percent chance of the one? The end of the lottery is it you get two picks right after the lottery. But then I almost feel like they would have to have the first and a second overall pit. And then you have the other team jump starting those teams that have never done anything and teams that actually have been doing it for years and trying to figure it out get punished because all these teams are brand new. They get the top two picks. Yeah. I really do think so because you really want those teams to come in and compete. You do, you do and I guess, man, you're probably right because these are markets that they want to have success today because I was trying to think I'm ahead of it.

9:14It was the Wimbee year, like hands down. We know who the number one overall pick is going to be. It's the Wimbee year. We are talking an actual generational player and we want our brand new team to have that guy. I would think so when you're bringing especially to Seattle market that had basketball before, Seattle seems fair. I don't know how they're going to handle it, but man, on the surface, I would say yes because I'm partial to Seattle. And I think that basketball and it had it went over very well up there and it will do it again. I truly don't care about Vegas, but I think the NBA does. And I think all the sports care because the ages are now and then you have the Raiders. Right. They have all four. So they truly care about being in that Las Vegas market. But I think they would want those guys to get and out again, I got to, I guess brush up on the rules that they had before when those teams, a couple of those teams came in at the same time and not just Charlotte, but when they had two teams coming in at the same time, how they, how those expansion drafts and who, how many people they can protect.

10:17Maybe you protect one less player in your franchise and expose better players to the draft instead of, you know, exposing the guys that you almost basically just don't want or you don't care about moving on. You got to do something if you want them to have any semblance of a shot at success early on. That's your point. You don't want two brand new teams to suck forever. No, you don't. So that, uh,