The NBA’s plans to expand the league from 30 to 32 teams has already garnered interest for one of the markets proposed to host a new franchise.
The NBA has received interest from several parties regarding a proposed expansion team in Las Vegas, which includes Los Angeles Lakers legend Magic Johnson.
NBA Commissioner Adam Silver confirmed the league will hold a vote this year on expanding the league from 30 to 32 teams, with Las Vegas and Seattle the two markets to host the two new franchises.
Earvin ‘Magic’ Johnson, a five-time NBA champion with the LA Lakers, is one of those interested in owning a share in a potential Las Vegas franchise, according to a report from Bloomberg.
Johnson reportedly met with Joe Lombardo, the Governor of Nevada, this year in pursuit of formulating a plan to build the NBA franchise if expansion is approved by the NBA Board of Governors this year.
The former LA Lakers President of Basketball Operations said to the Las Vegas Review Journal in March, “Las Vegas is my favourite home away from home, and I can’t think of a better place to expand my Magic Johnson Enterprises.”
NHL Las Vegas Golden Knights owner Bill Foley is also another suitor with reported interest in acquiring an NBA Las Vegas franchise, as well as Marc Lasry, Founder of Avenue Capital Group.
It is unclear whether Johnson, Foley and Lasry will form a consortium between them or with other external investors.
Multiple reports have suggested that the expansion fee ownership groups will need to pay for the Las Vegas and Seattle teams is $7bn-10bn each.
PJT Partners has been brought onboard by the NBA to assess ownership proposals for both teams ahead of the Board of Governors meeting and vote, set for late 2026.
Why LeBron James backed out
Another icon of the Lakers confirmed last month he will not be part of any ownership consortium for the proposed Las Vegas franchise.
LeBron James confirmed in a press scrum in March he will not be part of an ownership group after reports suggested he would team up with Fenway Sports Group (FSG) to bid for the Las Vegas team.
Founder of The Ringer, Bill Simmons, was one of the earliest to report James’ interest in becoming one of few NBA players to own a franchise in 2022.
USA Today revealed that James and FSG backed away from the Las Vegas team due to the reported $10bn expansion fee it would cost them.
NBA team valuations have skyrocketed in recent years due to the league’s new $76bn media rights deal it signed last season, as well as garnering greater commercial deals and international support.
The Lakers sold for a record $10bn last year, which was followed on from another record-breaking fee of $6.1bn paid for the Boston Celtics just a few months prior.
