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The question now is did Stern step in to buy the Hornets in an attempt to keep the team in New Orleans, as is being stated publicly, or is this the first step in a possible league contraction in conjunction with, or as a result of, the upcoming negotiations on a new collective bargaining agreement with the players association. According to Stern, the owners have lost around $380 million in 2008-09 and another $350 million in 2009-10.  It would take at least $750 million in salary reduction for the owners to break even and you can bet that the players association isn't about to give up that kind of money without a fight.

The dynamics for contraction may actually be in place, although it's still a longshot.  Sacramento is having a tough time getting an arena deal done and the Maloofs are going to be faced with the prospect of selling, convincing the league to allow them to move to Las Vegas or perhaps buying another franchise while selling the Kings back to the league to contract.  The third option would leave the league owning two teams it could then immediately shut down.  There are enough other franchises on the market, even some with portability, that the Maloofs should be able to cut a deal to buy a team, move it to Vegas and everyone will be happy - well everyone but the players that is.  But I think Stern and the owners are betting that the players won't be able to make it through a long lockout and will ultimately cave.

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