Getty Images
- Bidding process for both teams will take place if proposal passes first vote
- Saudi PIF to bid for London-based team in NBA’s European league
- Qatar Sports Investments and RedBird Capital also expected to make offers for European outfits
The National Basketball Association (NBA) will vote on the additions of two expansion franchises in Seattle and Las Vegas at the board of governors meeting next week, according to ESPN.
Should the proposal be approved after the first vote, the NBA will then initiate a bidding process for the two teams. ESPN estimates that they are expected to cost between US$7 billion and US$10 billion each. Both outfits would then be subject to a final vote later this year with a view to joining the league in time for the 2028/29 campaign.
ESPN reports that an increasing number of team owners are in support of expansion because of the long-term revenue growth projected in the Seattle and Las Vegas markets. However, some owners are said to be reluctant to see their share of league income decrease and would want to see the final valuation of expansion team bids and the fees involved before proceeding.
If the two teams are to join the league, either the Minnesota Timberwolves or the Memphis Grizzlies are expected to switch from the Western Conference to the East to accommodate the new arrivals and ensure each division has 16 teams.
Seattle and Las Vegas have long been earmarked as expansion locations, not least as both have successfully launched National Hockey League (NHL) teams in recent seasons – a crucial indication of fan demand and also ensures both have NBA-ready arenas.
Seattle previously hosted an NBA team between 1967 and 2008 in the Seattle SuperSonics, who then relocated to Oklahoma and became the Oklahoma City Thunder.The northwestern city is home of the reigning Super Bowl champions in the Seahawks, as well as the NHL’s Kraken, the Women’s National Basketball Association’s (WNBA) Storm and baseball’s Mariners.
Meanwhile, Las Vegas is increasingly a sporting hotspot, with Major League Baseball’s (MLB) Athletics in the process of relocating to the city. It is also home to the National Football League’s (NFL) Raiders, the NHL’s Golden Knights and the WNBA’s Aces.
The lofty valuations projected for both sides reflect the upward trajectory of the NBA, which is in the first year of US$76 billion domestic media rights deals. The Los Angeles Lakers were sold to Mark Walter for US$10 billion last year, which set a record for the sale of a US professional sports team.
Another priority for the NBA is its planned European division, for which it is currently soliciting investor interest. It is aiming to form a 16-team league representing the UK, France, Spain, Italy, Germany, Greece and Turkey.
The NBA has confirmed it would like to add established EuroLeague franchises to play in its division. It also plans to found new teams, which will reportedly be valued at US$1 billion.
According to The Athletic, Saudi Arabia’s Public Investment Fund (PIF) is one interested party, and plans to make a bid to own the London-based franchise. The PIF has a major sporting footprint already through Newcastle United and the LIV Golf circuit.
Meanwhile, Qatar Sports Investments (QSI), the owners of Paris Saint-Germain, is expected to bid for a team in Paris, while AC Milan owners RedBird Capital Partners will also bid for a Milan-based outfit.
The Athletic reports that all three bidders plan to build a new basketball venue should they be successful with their respective approaches.
A deadline of 31st March has been set for investors to submit bids for a team license, with over 100 bidders able to access a virtual data room set up by the league to inform their offers.
SportsPro says…
The NBA is clearly keen to press ahead with domestic and international expansion.
Its new broadcast deals with ESPN, NBC and Amazon now man it can devote its full attention to growing the league, with Seattle and Las Vegas the obvious candidates. Seattle retains a major fanbase who became disconnected once the SuperSonics were relocated, and now appears to have the quality of infrastructure required to host an NBA team. Indeed, the lack of an appropriate venue was one of the reasons the SuperSonics departed.
Meanwhile, Las Vegas has become a popular city for the NBA, given it plays Summer League games there and also held the semi-finals and final of the NBA Cup in the city. Both markets are also big enough to help NBA owners grow their revenues in the long haul.
As for the European division, the league has clearly been successful in capturing the attention of established sports investors who don’t have any ties to the NBA’s US teams. Unlike the US, the NBA is permitting sovereign wealth funds to invest in the European teams, which commissioner Adam Silver previously noted could lead to guidelines for investment changing in the North American competition.
The largest gathering for sports business professionals in the UK, SportsPro London will dive into the reality of sport, right now. No buzzwords, no fluff, just real insights. Learn more about attending here.