The National Basketball Association (NBA) has initiated a formal inquiry into potential expansion, as owners unanimously endorsed a proposal to assess the addition of franchises in Las Vegas and Seattle.
This resolution by the NBA’s Board of Governors sets in motion a systematic evaluation process for expanding beyond the current 30 teams, inviting potential ownership groups to present their bids and development strategies. The league noted that expansion is not confirmed and might lead to no new teams, one, or two.
“The vote today demonstrates our board’s commitment to examining potential expansions into Las Vegas and Seattle—two cities with a rich history of supporting NBA basketball,” stated Commissioner Adam Silver. “We anticipate engaging with interested parties as we move forward.”
The NBA has enlisted PJT Partners as a strategic consultant to evaluate possible markets, ownership candidates, arena facilities, and the broader economic ramifications.
Expansion fees are projected to start at a minimum of $6 billion. Early estimates suggest that each franchise could be valued between $7 billion and $10 billion, with both prospective markets likely ranking among the top eight in revenue generation.
Nevertheless, introducing new teams may dilute the current revenue-sharing scheme for existing franchises, a contentious subject among team owners.
“Some owners believe we simply do not need to expand,” Silver remarked. “While they don’t seem to be worried about the future, they feel secure with our existing 30-team structure.”
The earliest prospective launch date for the new teams is the 2028–29 season, though final approvals and logistical arrangements may extend over several years.
Las Vegas has long been regarded as a prime candidate for expansion, having a historical relationship with the NBA through events like the Summer League and more recently, the NBA Cup finals. The city’s status as a significant sports destination is also on the rise, with the NFL’s Raiders, NHL’s Golden Knights, and WNBA’s Aces all calling it home, as well as the anticipated arrival of Major League Baseball’s Athletics in the near future.
Nevada Governor Joe Lombardo praised the NBA’s decision: “The Board of Governors’ vote is a clear indication of the tremendous growth we are experiencing in Southern Nevada and our state’s favorable business environment.”
He further remarked: “The people of Las Vegas have demonstrated unwavering enthusiasm for our professional sports teams, and the arrival of a new NBA franchise will enhance entertainment options, create additional jobs, and foster small business growth in the region.”
Ownership interest in Las Vegas may feature groups associated with Magic Johnson and entrepreneur Bill Foley, among others. The issue of arena development is notable, with options like T-Mobile Arena possibly requiring enhancements to comply with NBA standards.
Meanwhile, Seattle, which once housed the Seattle SuperSonics before their relocation in 2008, has been eagerly pursuing a return to the league. The city is renowned for being an enthusiastic basketball market with passionate fan support.
The expansion process will also entail addressing competitive balance. Both Las Vegas and Seattle franchises are expected to be added to the Western Conference, which may necessitate moving existing teams like New Orleans, Memphis, or Minnesota to the Eastern Conference.
The league clarified that expansion remains uncertain and will depend on the outcomes of its evaluative efforts, including economic assessments, ownership proposals, and competitive considerations outlined by team owners.