For example, the Memphis Grizzlies were a tremendous mo…

For example, the Memphis Grizzlies were a tremendous money loser up until a few years ago. They were not alone. Most insiders that talk about this topic say it takes a franchise roughly ten years to really get on solid footing in a new market, and neither the new labor deal or the current TV deal will be around in ten years. Many of the more frugal owners understand that taking in an expansion fee, even one that could cross the billion-dollar mark, is basically a loan against future earnings. That does not mean there are not some owners that would have interest in a cash infusion while the game is growing and revenue is pouring in. Expansion fees would be divided among the current owners, so a billion-dollar fee would equate to more than $33 million to each owner. That’s not an insignificant number.
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September 27, 2021 | 3:03 pm EDT Update