All nine teams will play in the inaugural NBL Cup competition, starting on February 20, in which they will play each other once.

There will be $300,000 in prize money to be shared among the top three teams and results will count towards clubs' regular home-away-season records.

The majority of games in the Melbourne hub will be played as double-headers at John Cain Arena, with the NBL hopeful attendance restrictions in Victoria will be lifted to 75 per cent capacity early next year.

Afterwards, Australian-based teams will be sent back to their home cities to complete the 2020-21 season, which tips off on January 10.

But NBL Commissioner Jeremy Loeliger is wary of the potential for further issues relating to COVID-19, with the league to maintain flexibility through the use of a rolling fixture beyond the early rounds and Melbourne hub games.

It comes after the 2019-20 grand final series was cut short in March when the Sydney Kings pulled out amid coronavirus concerns.

"Playing these extra games in Victoria will provide us with valuable time for restrictions on crowd numbers to continue to be eased around the country, hopefully allowing more fans to see their teams play at home," Loeliger said.

"It also enables us to accumulate more games in an accelerated format should any unexpected issues arise later in the season.

"The additional games will also generate much needed revenue for our clubs during this COVID affected year but are also a huge bonus for our fans and the game of basketball across Australia as we bounce back from an unexpectedly long off-season."

If successful, the new NBL Cup format could continue in future NBL seasons.

Three points will be awarded for a game win, with extra points on offer for each quarter won.

The winning team will scoop up $150,000, with the runner-up claiming $100,000 and $50,000 going to third place.

"The NBL Cup will be the biggest event the NBL has staged in one city and a chance to see the best players from around Australia and New Zealand in what will be a showcase of world-class basketball featuring all nine NBL teams," Loeliger said.

The NBL is hopeful all teams will still be able to play their standard 14 home games during the regular season, subject to government COVID-19 protocols and scheduling issues.

The New Zealand Breakers are the possible exception, starting their season in Australia and only returning to Auckland if border restrictions are eased.

Australian Associated Press