Dallas Mavericks owner Mark Cuban questioned the financial and competitive implications of NBA expansion during an appearance on the DLLS Mavs Podcast.
Cuban challenged the perceived benefits of expansion fees, describing them as a long-term loan rather than immediate revenue. “The expansion fee is just a loan,” he said, via Grant Afseth of the Dallas Hoops Journal. “You loan me, let’s say it’s $6 billion and I pay back that loan… it’s only a question of how long it takes.”
He highlighted that dividing television revenue among more teams could dilute existing franchises’ income. “So if the TV money is $100 million, and it’s $6 billion, that means in 60 years the loan will be paid off with no interest,” Cuban added, emphasizing the limited financial upside for current owners.
Beyond ownership, Cuban warned expansion could reduce the salary cap under the league’s collective bargaining agreement. “If it’s one or two teams, you’re reducing the cap. So literally, in a second apron era, the cap goes down, and the second apron goes down, and the teams are f—–. It just doesn’t work.”
He also noted that players, especially those on maximum contracts, would feel the effects. “All of a sudden you’re a max player and because they added two expansion teams, there’s just not as much money to go around to the players,” Cuban said. “Players would have to decide, do we want to take less money in cap room, or do we want extra jobs?”
Cuban’s comments come as NBA Commissioner Adam Silver continues studying the feasibility of adding new franchises. Silver described expansion as “complicated” and emphasized that the league has not set any timeline or price point.
The commissioner outlined several concerns for potential expansion, including talent dilution, competitive balance, and the financial health of local and regional television markets. He stressed that any new team must have a viable market plan and strong arena facilities before approval.
Cities such as Seattle and Las Vegas remain top candidates, but the NBA Board of Governors has agreed to let the league office conduct a full analysis before moving forward.
The NBA appears to be more focused on launching a new league in Europe rather than expanding with Silver already with potential participants such as Real Madrid.
