This doesn't make any sense
It can be so simple. Eliminate the preseason schedule no one cares about, hold a double elimination tournament played on a handful of potential expansion team courts. Championship/later round games get played in the official NBA arenas. Everyone wants to see the new teams going into the new season, this provides the opportunity. 2 losses and it's back to training camp til the regular season.
This is basically just a random collection of games, and with it only being 4 games total tie breakers will decide mostly all the knockout round matchups. 500k is nothing to an NBA player (actually 250k after taxes), and the Vegas crowd will be full of casuals with no team allegiance
Your team gets eliminated, nothing changes to your schedule. On to the next game. Stupid money grab at it's best