As we touched on the other day, the NBA seems to be ready to start using the D-League a little bit more, by going to a hybrid affiliation, where an NBA team will be able to buy the basketball operations side of a D-League team with incurring the business expenses of the off-court product. Marc Stein, in today's Weekend Dime, updates us a bit further on this development.
The NBA team must make a three year commitment when doing this, which equates to a potential investment of $1.2 million. Another new aspect in Stein's article says that the NBA will also be in charge of absorbing all travel cost, which explains the $400,000 per year investment.
The cost involved in running all levels of a D-League franchise, by contrast, was estimated by one Western Conference executive as "a million-dollar loss for one year."
Wow.
Other interesting bits in Stein's article are as follows:
Our initial quickie poll of a handful of teams, however, suggests that only a few NBA clubs are expected to take advantage of the new model, even though the push for this option came from the teams as opposed to the league office in recent months. The deterrant is the mandatory three-year commitment which makes it a potential investment of $1.2 million. As one East exec noted: "This couldn't come at a worse time economically. I love the idea and we'll look at it, but [it's] hard to stomach more costs for most teams now." "But it's a massive difference from baseball when you don't get to control player rights. What are you really getting? The Lakers or the Spurs could develop a guy in their D-League program and we can sign him if he's not [on their NBA roster]."
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