The owners of the NBA’s 25 teams could be pushed to sell their teams, with a plan being developed to do so by the end of this year, ESPN has learned.
The league is in discussions with owners about possible measures to limit the potential for a lockout that could result from a potential sale, league sources told ESPN.
Owners could be asked to sell up to five franchises and face a $25 million fine, sources told the network.
The owners are also in talks with league owners about ways to help the league get a new stadium, sources said.
A number of owners, including owners of teams such as the Los Angeles Clippers and Minnesota Timberwolves, are exploring a sale, but the league is working with the owners on a strategy, sources added.
While it is possible that all or a portion of the league’s 30 teams could end up sold, some owners are wary of giving up the franchises they have built.
Owners are also concerned about a possible relocation issue, sources familiar with the talks told ESPN, which is why owners are considering whether to buy out their teams.
It is unclear whether the owners have made any final decisions about how they would proceed with their sale process, but sources told NFL Media’s Albert Breer that the owners are preparing to make a decision within the next few weeks.
The NBA is under pressure from players’ unions, including the players’ association, to sell its teams in the near future.
It is unclear how much money would be needed to make that happen.
The move would have significant implications for the NBA.
It would mean that some owners, such as New York Knicks owner James Dolan, would have to sell some of his teams, and the NBA would also have to move its league-owned teams to smaller arenas in order to play games in the new venues.
The NBA would then have to buy the new arenas, which could take several years.
The union is hoping that the league will do away with the luxury tax and cap rules that are a major part of the deal that could give the league a significant financial boost over other sports.
The luxury tax is designed to prevent teams from using revenue from television contracts to pay for player salaries and other expenses, while limiting the amount of time teams can spend on the court, per NBA rules.
The cap limits how much a team can spend and where players can play, per league rules.
In the past, the league has used the luxury taxes to boost revenue, but it also has to play by the cap rules because of the revenue the luxury-tax rate is supposed to generate.
The luxury tax currently hits teams on the money they receive from their television contracts.NBA owners have said the tax would hurt them because it makes it difficult for them to sign players and build the rosters they have desired.
The tax is the main reason teams like the Los Antonio Spurs have struggled to compete with teams like Miami and Boston for NBA championships, and it has made the league more competitive in the last two years, sources have told ESPN over the years.