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Mark Cuban. Image via: Christopher Willard | Disney General Entertainment Content | Getty Images
NBA expansion has been one of the league’s most talked-about possibilities, with commissioner Adam Silver openly confirming that owners commissioned a detailed study into potential new markets.
Yet despite the growing buzz, billionaire entrepreneur and Dallas Mavericks minority owner Mark Cuban isn’t convinced. Speaking candidly on the DLLS Mavs podcast, Cuban explained why expansion may not be realistic in the near future and why the financial math doesn’t line up for either players or team owners.
Mark Cuban breaks down the financial flaws of NBA expansion
Mark Cuban, who Forbes estimates is worth around $6 billion, unpacks the core issue with the potential NBA expansion.
Expansion fees may look enticing on paper, but they don’t create long-term value.“The expansion fee is just a loan,” Cuban said. “You loan me let's say it's $6 billion and I pay back that loan. I give you 1/31—because there's 30 teams now, there will be 31. I get 1/31 of the TV money, and then it's only a question of how long it takes. So if the TV money, let's just make it an easy number, is $100 million, and it's $6 billion so that means in 60 years the loan will be paid off with no interest. So why split up the pie any further?”
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His concerns don’t stop there. Cuban noted that adding even one or two franchises directly impacts the collective bargaining agreement and the salary cap.
“Part two of that is, when you calculate the CBA, and when you calculate the cap, now you're divided by 32 teams,” he explained. “So now if the cap is $170 million, but the basketball-related income hasn't really increased by the team that you added, so now 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 further stressed that the ripple effect would hit players directly. “So think about it if you're a player, and now 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. So the players would have to decide, do we want to take less money in cap room, or do we want extra jobs?”
Why does Mark Cuban favor global growth over domestic expansion?
Mark Cuban. Image via: Borja B. Hojas/ Getty Images
Cuban’s skepticism isn’t rooted in negativity but in what he views as smarter opportunities.
He pointed out that bigger market teams like the Los Angeles Lakers and New York Knicks already carry more financial weight, yet stand to lose more if revenue gets divided further. Players, too, are navigating tighter contracts under the current CBA, and some contenders have already shed talent to dodge the costly second tax apron.Looking ahead, Cuban suggested the players’ union could exercise its opt-out clause at the five-year mark of the current deal, especially if expansion pressures salaries even further.
“I would not be surprised if the players take the opt out,” he said.Also Read: WNBA legend Candace Parker receives rare second jersey retirement honor as Chicago Sky salute her franchise legacyStill, Cuban isn’t against all growth. He openly supports reports of a possible NBA league in Europe. “That's just a new source of revenue, and we're a global sport,” he said. “So I think that's a net positive if they can make it work.”