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Bobcats, contraction, appear in same thought on CBSSports.com

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Bobcats fans paying close attention to their team's political situation -- in the league and the region -- have known the team's existence is less assured than, say, the Knicks' existence. It's not a huge difference, because the league and franchise would owe Charlotte massive penalties for moving within the next couple decades, but I'm not sure if there are any penalties attached to (gulp) contraction.

It's highly... HIGHLY... unlikely to ever happen. The last major American pro sports team to fold was the Cleveland Barons, of the NHL, in 1978. Again: exceedingly unlikely. However, Ken Berger of CBSSports.com reports the league is considering contraction, and floats the Bobcats as a contraction candidate.

A person with knowledge of the owners' discussions said the league "will continue to be open to contraction" as a possible mechanism for restoring the league to profitability.

[snip]

Saying goodbye to the Grizzlies, Timberwolves, Bucks and Bobcats would save the league a few hundred million in needless salaries and improve the product dramatically.

I put this at about a 1% chance of this happening, and only that high because the labor negotiations playing out in the media have been particularly heated, with owners taking a crazy-rigid stance for cutting costs. Every market is different (I hear the situation in Memphis is an all-around disaster), but it's most likely that this is posturing, offering up a more drastic option in order to get the players to agree to the less-drastic, but still drastic, measures they wanted all along. It's not like the owners' sky-is-falling narrative is very credible, either.