BAMO 2008 Problem 5

N teams participated in a national basketball championship in which every two teams played exactly one game. Of the N teams, 251 are from California. It turned out that a Californian team Alcatraz is the unique Californian champion (Alcatraz has won more games against Californian teams than any other team from California). However, Alcatraz ended up being the unique loser of the tournament because it lost more games than any other team in the nation!

What is the smallest possible value for N ?