Competitive Edge - Sports & Entertainment Marketing News

NBA wants $2.5 billion fee for possible expansion teams; expects offers in Vegas and Seattle, per report


The NBA is sorely in need of a cash infusion. Billions of dollars in revenue have been lost, and with no clear point at which fans will safely be able to return to arenas, even more profits are expected to go down the drain. A possible solution that has been broached is expansion. If the league chose to add two teams, it could sell them to the highest bidder for cash that would offer sorely needed relief to its 30 existing teams right now. 

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Discussion Questions:

  1. What is revenue?
  2. Why might the NBA be interest in expanding?
  3. How much influence do you think the pandemic had on the league’s decision to revisit the idea of expansion?
  4. What might the argument against expansion be?
  5. What is an expansion fee?
  6. Why would anyone pay $2.5 billion just for the right to buy a NBA expansion franchise?
  7. According to this story, what cities might be the most likely to land a team? Why might that be?
Chris Lindauer
After working for nearly a decade in professional sports, Chris Lindauer, formed Sports Career Consulting to provide unique sports business education opportunities in and out of the classroom. In the eighteen years (and counting) that followed, Chris has inspired thousands of students to pursue their passions and explore the career of their dreams. He currently lives in Portland, Oregon with his wife, two teenage daughters and their dog.


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