Seattle and Las Vegas would be the obvious choices for the league going to 32 teams. In my opinion, these cities are the most financially capable of handling and promoting an NBA franchise. As for European expansion, the NBA just isn't prepared for that and to be honest the European talent pool is not what it used to be. The elite players from Europe all move to the US to be part of the NBA and at least for the foreseeable future, the NBA is where it is at. 32 teams would make sense, and with all the $$$ out there for the taking, the NBA could certainly absorb two more franchises and prosper.
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