Quote:
Originally Posted by KC_Connection
Still not enough. Expansion of this kind would mean (at least in theory) a lot more money for the collective.
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MMM maybe.
Do you listen to the Bill Simmons podcast?
He had Cuban on and he suggested that NBA expansion would hurt current owners. It was early in the spring when I heard it so I might be wrong, but if there is a guy who's math I trust, it's Cuban. But essentially he said the pie being bigger is of no consequence because you get a smaller piece of the bigger pie.
And there's probably a similar approach here. Is the additional ad revenue of an additional 52 games (is that right? 2 additional games for 18 weeks and 18 games week 19?) worth getting 2.778% instead of 3.125%. If my math is right (it's midnight and I'm tired as **** - it's probably not), that's an additional 12% you couldn't otherwise get just to break even.
654 games vs 544 is 19% more games, but really 34 of those games would be available with 32 teams, so that's only 13.4% more games from additional teams. Also, I don't know how the ad programs work. Not sure if a 13% increase in ad slots equates to 13% more revenue.
There is also some dilution effect of franchise valuation, and reduced control over decision making that I'm not smart enough to put a number on.
But if the 12% and 13.4% numbers are right, that's a mighty big bite to take for 1.4% marginal revenue - maybe.