NBA's terms go up for expansion team

Terms Go Up, Up; Deadline Monday

by Bill Nichols

PHILADELPHIA -- The National Basketball Association has passed the ball to the visibly shaken Nick Mileti and he has until noon Monday to return it.

Finally ending days of rumors the NBA yesterday voted for expansion and announced it is prepared to addas as many as four cities, Cleveland included, for next season.

BUT THE TERMS have changed, including the price, and when Mileti, representing Cleveland, heard them he appeared obviously disappointed and deflated.

Although the new terms and conditions were declared "confidential" and kept secret by the NBA, The Plain Dealer learned the new franchise price is now $3,500,000, an increase of one-half million over the figure originally stated.

MOREOVER THE POSSIBLE addition of FOUR new teams, instead of two, changes the entire picture.

IT WEAKENS the draft of both college and pro players.
IT CUTS THE TV pie more ways, giving each new club a smaller slice
IT MAKES FOR a less attractive schedule since there will be more weak clubs in the league.

Mileti, owner of the Arena who is representing approximately 25 Clevelanders in the deal, said, "Now we'll have to decide what to recommend to our people and then I must come back to the league with our decision by next Monday." He already has deposited $100,000 in earnest money with the league. So have Houston, Portland, and two groups from Buffalo.

    MILETI HAD BEEN here since Sunday, awaiting some announcement from the NBA. When he finally got it, he came away clearly shaken. His chin was dragging on the floor.

    "They (the league) wanted the conditions confidential and I respect them for that, " Mileti said last night before heading home to tell his partners the news.
    "Conditions have been changed substantially," he said.
    "All conditions?" he was asked.
    "Yes, all conditions."
    "Now, we have to decide what we will recommend to our people and then I must tell the league by Monday."

MILETI SAID yesterday's sessions with the Board of Governors lasted about an hour and a half.

"First, all five groups met with the expansion committee," he said. "Then there was a question and answer period and then each applicant met individually with the committee."

The Arena owner admitted he was surprised by the new terms and conditions, but added, "I don't knock them. They can set any terms they want. It's their league."

"WE HAD BEEN relying on their (league) spokesman for some time and frankly we were surprised today by the new conditions."

One applicant expressed his feelings about the new terms thusly: "It was like courting a girl and when you finally got her to the altar you found out it was a man."

From the other side of the fence, Cleveland is still favored by the majority of NBA owners. One magnate said, "If anybody can make a go of a new franchise, it's Mileti."

BUT NOW he obviously considers it much more difficult. The overhead will be greater; TV income will be lower; although the new clubs will select in the first round of the college draft, they will not pick until the middle or upper middle. And there will be fewer good veterans to select in the pro draft.

Now it's up to Mileti's many partners. They'll be bouncing it around until Monday.

This article originally appeared in the Cleveland Plain Dealer January 21, 1970. Reproduced with permission.