The NBA’s proposed Las Vegas-based expansion team is the subject of significant interest from multiple suitors.
The proposed NBA expansion team in Las Vegas has a new suitor in the form of the Las Vegas Jacks consortium, which already has $8bn in financial commitments to acquire the team.
The group is led by former Phoenix Suns owner Jerry Colangelo, Founder of Horizon Sports David Levy, and Prime Capital Financial Managing Partner Scott Colangelo. US Bank and its subsidiary BTIG LLC. are serving as the group’s financial advisors.
Under its proposals to the NBA, the Las Vegas Jacks aims to build a new, purpose-built NBA arena as the home for the expansion team.
Scott Colangelo said: “Our team is focused on executing on three very distinct levels.
“Raise the entirety of the capital in cash with exceptional business leaders. Build the most impressive state of the art basketball arena in the world. And be part of a group committed to giving the city of Las Vegas what they deserve.”
Is a bidding war brewing in Las Vegas?
The Las Vegas Jacks group is not the only consortium or individual seeking to gain ownership of one of the NBA’s newest teams.
NHL Vegas Golden Knights‘ owner Bill Foley and his Black Knight Sports and Entertainment group, which also owns the Premier League’s AFC Bournemouth, is also interested in buying the Las Vegas franchise.
Foley owns the T-Mobile Arena, where the Golden Knights plays its home NHL fixtures, and is reportedly committing between $300m-$400m to renovating the arena to meet NBA standards and expand the capacity by an extra 1,000 seats.
Foley has also proposed a dedicated facility to be built for player welfare and practice, while also leaning on other minority partners to help support his bid.
Five-time NBA champion and basketball hall of famer Earvin ‘Magic’ Johnson is also another party interested in the Las Vegas team. Johnson has already met with Joe Lombardo, the Governor of Nevada, this year in pursuit of formulating a plan to build the franchise.
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.”
Marc Lasry, CEO of Avenue Financial Group, is another suitor, who used to have ownership of the Milwaukee Bucks before selling his stake in 2023.
NBA Commissioner Adam Silver is expected to reveal the status of the Las Vegas expansion team after the league’s annual summer meeting, held in Las Vegas.
Both the proposed Las Vegas and Seattle expansion teams are expected to command an expansion fee of $7bn to $10bn. However, if all parties interested remain intent on becoming the owners of the Las Vegas team, the expansion fee could exceed the $10bn mark.
