JOIN OUR WHATSAPP CHANNEL
Las Vegas NBA Team Poised to Become Most Expensive Sports Franchise in US History With Looming Bidding War
Las Vegas is poised to get an NBA expansion team, and the bidding war for the franchise is considered to be the most costly and competitive sports deal in US history.
The proposed NBA expansion team in Las Vegas is on track to become the most expensive sports franchise in U.S. history. A Bloomberg report highlighted that the expansion fee and a new stadium are estimated to total about $7 billion.
This amount, according to the report, would break the current record of $6.05 billion, which Josh Harris’ group paid last year to acquire the NFL’s Washington Commanders and their stadium.
NBA Commissioner Adam Silver talks expansion at Summer League
During the NBA2K25 Summer League earlier this week, National Basketball Association Commissioner Adam Silver briefly mentioned the possibility of expansion, specifically noting Las Vegas.
With discussions around Las Vegas getting an NBA team, stars like LeBron James and Shaquille O'Neal have expressed their interest in being part of this venture.
Earlier in the week, at a press conference during the Summer League at the Thomas & Mack Center on the UNLV campus in Vegas, Silver mentioned the league would start looking into expansion later this year after finalizing a reported $76 billion media rights deal and a new collective bargaining agreement.
"We're not quite done with our media deals yet, but once we are, we will turn to consideration around expansion," Silver told the media.
Las Vegas as a potential market for an NBA team
Expansion in major U.S. sports leagues is uncommon. The NBA last added a team in 2004 with the Charlotte franchise. The NFL hasn’t expanded since 2002, and Major League Baseball’s last additions were in the late 1990s. Meanwhile, team valuations have surged, and Las Vegas has become a sports hotspot, hosting the recent Super Bowl and adding an MLB team to its NFL, NHL, and WNBA franchises.
“Vegas is a unicorn,” said Michael Leeds, a sports economist and professor at Temple University. The city's mix of being a major tourist destination and a booming sports town will make an NBA franchise a “huge draw.”
The Las Vegas team's ownership appears wide open, unlike Seattle, which lost its NBA team in 2008. Seattle’s NHL team owners, led by David Bonderman and his daughter Samantha Holloway, are strong favorites to secure an NBA franchise.
A $7 billion price tag would eclipse the current record of $6.05 billion that Josh Harris's group paid last year for the NFL’s Washington Commanders and their stadium.
READ MORE: NBA Insider Reveals LA Lakers' Players Have Negative Trade Value; DETAILS Inside
Costs and venue considerations for the Las Vegas NBA franchise
Where the Las Vegas NBA franchise will play is a big factor in the cost. The NHL’s Golden Knights play at T-Mobile Arena, co-owned by MGM Resorts International. MGM's CEO, Bill Hornbuckle, has expressed interest in hosting an NBA team.
Building a new arena would add to the franchise purchase cost. Reports suggest the fee is around $4 billion but could reach $5 billion due to competition and increased media rights revenue, according to sources who requested anonymity due to the private nature of the discussions.
The sale of the NBA champion Boston Celtics could also influence the pricing of expansion teams. Sportico values the Celtics at $5.1 billion, making them the fourth-highest in the league.
In Las Vegas, various groups are competing for real estate. Tim Leiweke’s Oak View Group has proposed a $10 billion project centered around an NBA arena, while LVXP has its own plan for a complex on the Las Vegas strip.
LeBron James shows interest in owning the Las Vegas NBA team
LeBron James has openly expressed his desire to own a Vegas team if it becomes a reality. The NBA's rule prohibiting active players from owning a team could influence James's retirement timeline.
ESPN's Brian Windhorst commented on First Take that the biggest thing, other than health, that we're going to see that is going to determine the end of LeBron's career is when the owners of the league set forth a timeline about when they're going to establish that expansion team in Las Vegas. He believes that once the TV rights deal is settled, expansion talks will follow.
Windhorst also noted that James "wants to join up with partners to become the face of the franchise in Las Vegas."
Shaquille O'Neal's also interested in team ownership
James isn’t alone. Shaquille O’Neal, an NBA Hall of Famer and media personality, has also shown interest in owning the team. O’Neal had to sell his minority stake in the NBA’s Sacramento Kings due to a betting partnership.
Even multinational companies are interested. Red Bull GmbH, the energy drink maker, is in early discussions about bidding for a Las Vegas team, Bloomberg previously reported.
This is just the beginning. Once the NBA officially announces the expansion process, more investor groups are expected to join the competition.
You May Like This
Latest Articles
