The negotiations continued at 1:30 pm, and Stern agreed with Gan Guoyang's suggestion to establish a Gambling Commission and allocate a portion of the dividends as League revenue.
After reaching consensus on this, both parties further discussed the new team's salary cap, expansion draft rules, and advertising revenue sharing in the afternoon.
These were relatively minor issues, and after some exchanges, both parties quickly reached an agreement.
However, the most challenging and significant hurdle, the second point of contention, unfolded in the final stages of the negotiation.
David Stern demanded that the Las Vegas team must achieve a total revenue of $1 billion over the next five seasons.
If unable to meet this, as Stern said, the team's shares would be discounted and compensated to the League.
In essence, if your revenue doesn't meet the requirements, other teams will unite to take you down.
