The NBA Drops Latest Hint At Expansion

Although it may not seem like it, the buzz surrounding the NBA expansion has been around for quite a while now. The NBA is an international phenomenon, with players from all around the globe. Now, NBA games are played all over the world. Approximately 23 to 27% of the NBA is made up of non-American-born players. Seven of the last 10 NBA MVPs have been awarded to foreign-born players.

The NBA, alongside FIBA, established the Basketball Africa League (BAL) in 2019. Earlier this year, there was buzz surrounding the NBA expanding to Europe.

However, in addition to the NBA’s international proposals, the league is also exploring domestic expansion. Las Vegas and Seattle are the two front-runners to get NBA franchises. This will bring the total number of NBA teams all the way up to 32.

But is this realistic? And what does the NBA have to say about this?

The NBA Drops Latest Hint At Expansion

Seattle And Las Vegas

According to Shams Charania, the NBA will hold a vote at the Board of Governors meetings on March 24-25 to explore the addition of expansion teams, namely in Seattle and Las Vegas. The target date for the teams to join the NBA is the 2028-29 season. Industry executives suggest that the bids for each team will be in the range of $7-10 billion dollars.

Over the past season, three different NBA teams have been sold, and the only sale to reach the figures suggested by the executives was the Los Angeles Lakers, who were sold for $10 billion dollars.

The other two teams, the Boston Celtics and the Portland Trail Blazers, were sold at $6.1 and $4.25 billion dollars, respectively.

This massive price tag for each expansion team makes it worth it for the NBA owners to give up a portion of the NBA. Should both teams combined sell for at least $15 billion, each owner will take home approximately $500 million.

In an appearance on First Take, Charania suggested that once there were enough bidders to raise the amount necessary for an NBA expansion, team owners would remain skeptical. For NBA expansion teams to be “financially feasible,” Charania suggested the following figures. While a Las Vegas franchise would cost anywhere between $9-10 billion, $7-8 billion would be enough for a team to come to Seattle.

The Investors Dilemma

Comparing the two markets together, Las Vegas stands out as the bigger fish in this tiny pool of potential expansion cities.

And indeed, this is something that is reflected in the number of bidders driving up the price of owning an NBA team in Las Vegas. The Oak View Group is interested in owning a team in Las Vegas. Alongside ownership, they also plan on building a new arena in the South Strip area. The LVXP Group has many of the same intentions, while wanting to build an arena in the North Strip area.

Lakers forward LeBron James and the Fenway Sports Group were named as other suitors for a potential expansion team. However, according to a statement from James after a Lakers‘ win, they have since withdrawn from the race.

Lastly, Lakers legend Magic Johnson, alongside his group, The MAGI, has expressed interest in ownership and renovating T-Mobile Arena.

The only group interested in a Seattle NBA franchise, however, is the Seattle Kraken owner, Samantha Holloway.

This lack of investor interest has led to ESPN suggesting potential destinations, including Mexico City, Vancouver, Montreal, and Kansas City.

Does this mean that the NBA’s expansion is imminent?