The league and the Victorian Government announced on Monday that the southern capital will host 36 games in a $300,000 'NBL Cup', starting February 20, with all nine teams to be part of Melbourne hub.

However, the Hawks and Kings could be forced to relocate earlier after all states and territories imposed borders restrictions on NSW travellers. Queensland and Western Australia have re-implemented hard border closures while Victorian Premier Daniel Andrews hasn't ruled out expanding current restrictions on travellers from the Greater Sydney hotspot.

The draw for the first five rounds of the competition has the Hawks making two trips to Melbourne and three trips to Queensland in its first nine games. The NBL, and representatives from both NSW-based clubs, have opened dialogue with relevant government authorities to consider the options available should restrictions not be eased in time for season tip-off on January 10.

The Hawks and Kings played their preseason match on Sunday at an empty Qudos Bank Arena as the Northern Beaches cluster grew, and could be forced to re-locate to Melbourne ahead of the Cup. The New Zealand Breakers are already based full-time in Victoria until border restrictions in New Zealand are eased.

The NBL Cup was planned long before the Sydney outbreak and will see all teams based in Melbourne from the end of February, with all wins recorded on the NBL regular season ladder.

Points will also count towards a separate Cup ladder, with three points awarded for a win and an extra point awarded for each quarter won. Every team will play each other once and the team with the most points at the end of the 36 games will be awarded the NBL Cup and $150,000 in prize money.

The runner-up will receive $100,000 and third place $50,000, ahead of teams returning to their home venues for the remainder of the home and away season.

With doubts over when other cities will be able to host crowds, the month-long tournament will allow games to be played in front of close to packed houses, with the Victorian government expected to allow venues to hold up to 75 per cent capacity in the new year.

NBL commissioner Jeremy Loeliger says the plan, and the additional eight games it adds to the schedule, will also assist the league in adapting to rapidly changing COVID situations around the country that have continued to shift in recent days.

"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 generate much-needed revenue for 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.

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"Extra games are a great outcome for everyone, especially when so many sporting leagues in Australia and around the world have had to shorten or even cancel their seasons. We are very grateful to the Victorian Government for the opportunity. It's certainly not taken for granted given where we were only a few short months ago."

It remains to be seen what impact the COVID situation could have on the opening month of the season, but Hawks co-owner Dorry Kordahi backed the move for extra games in the Melbourne bubble with the aim of keeping the club's full home-game quota intact.

"The current climate means a hub is the best way to ensure basketball can continue safely and successfully no matter what's happening in our communities," Kordahi said.

"The team is excited to head to the hub and determined to make our Hawks fans proud during the inaugural NBL Cup. A big positive [of the hub] is that it will allow our team, which has a lot of fresh faces, to mesh and learn more about one another in a quick period of time.

"It will be a tight-knit environment, and one we believe will only benefit our team in its pursuit of this year's NBL championship. Our players and coaches will have to make sacrifices by leaving the Illawarra, and we ask our fans to continue supporting us from afar.

"They have been through a lot over the last few years, but are a passionate and resilient bunch that will get behind our team no matter where it is playing."