Expansion Handcuffs: Why Canada's First NBA Teams Struggled

Published on September 24th, 2025 11:46 am EST
Written By: Dave Manuel


The Toronto Raptors and Vancouver Grizzlies never had a fair shot when they entered the NBA in 1995. The league wanted Canadian expansion, but it did not want instant success. The rules in place made sure of that.

Expansion teams have it tough under any circumstances. But the NBA made it harder for Toronto and Vancouver. They were banned from the top five picks in their first draft. They were banned from the first overall pick for their first three drafts. They were not allowed the full salary cap in their opening seasons. On top of that, the expansion draft pool was barren, with other teams able to protect nearly every player of consequence. The result? Rosters filled with fringe players, limited payrolls, and no chance at drafting future stars like Allen Iverson or Tim Duncan.

The cap restriction was crippling. In their first two years, both teams had to operate at 80 percent of the league's salary cap. By year three, they could only spend 90 percent of the cap. In a league where stars drive everything, being forced to run with a thinner budget meant they could not pursue the top free agents even if they wanted to. It was essentially a penalty for existing. Toronto and Vancouver were competing against franchises with full payrolls, deep benches, and stars already under contract. The financial handicap ensured the Canadians would stay in the basement for years.

The punishment hit Vancouver hardest. Without access to elite picks, they missed the opportunity to land a true franchise cornerstone. Steve Francis refused to play there after being drafted, forcing a trade that set the tone for instability. Poor results on the court led to weak attendance, and by 2001 the team was gone, relocated to Memphis.

Toronto at least had a stronger market to cushion the blow. They landed Damon Stoudamire as their first face of the franchise, later trading for Vince Carter, whose superstar rise turned the team into a legitimate draw. But it still took years to dig out from the restrictions. The Raptors did not win a playoff series until 2001, six seasons into their existence.

Compare that to the rules for newer expansion teams. The Charlotte Bobcats in 2004 had access to the fourth pick in their very first draft, which they used on Emeka Okafor. They had no salary cap restrictions. In today's NBA, the setup is designed to give new franchises at least a fighting chance to be competitive quickly. Vegas and Seattle, should they join in the next round of expansion, will not be forced into the same uphill battle Toronto and Vancouver faced.

The irony? The NBA wanted Canadian basketball to succeed but kneecapped both franchises from the start. Toronto eventually survived thanks to market size and luck in trades. Vancouver never had the same chance.

The numbers underline the gap. In six years in Vancouver, the Grizzlies never won more than 23 games. The Raptors, under the same rules, had five straight losing seasons before finally cracking 45 wins in 2000-01. Both clubs were forced to start behind the line, by design.