Socionomics Alert—NBA Contraction

David Stern: NBA to look at contraction

The NBA currently has thirty teams, but the league's commissioner, David Stern, seems open to the possibility that that number of franchises could shrink in the future.

Speaking on an ESPN.com podcast, Stern stated that there is some interest in contraction from both the league and players sides and that the subject will be picked up after the current Collective Bargaining Agreement negotiations are completed.

"[Contraction] is not a subect that we're against," Stern said. "In fact, when you talk about revenue sharing, a number of teams have said that if you have a team that is perpetually going to be a recipient, aren't you better off with the ability to buy them in? Because between the revenue sharing and the split of international and the TV money, we could almost buy them in with their own money.

Contraction is coming. I don't know if there was a specific prediction made by Prechter or others, but historic studies have shown contraction occurs during downturns in social mood.