The Las Vegas NBA Summer League this year has drawn significant attention, particularly due to the highly anticipated debuts of top prospects such as AJ Dybantsa, Darryn Peterson, and Cameron Boozer. However, another point of interest surrounded the potential vote regarding the NBA's expansion into Las Vegas, a topic that has generated excitement since the league began hosting the Summer League in the city in 2004.
Despite the build-up, no vote took place this week, as NBA Commissioner Adam Silver confirmed to the press following the conclusion of league owners' meetings on Tuesday. Silver expressed appreciation for the NBA’s longstanding ties to Las Vegas, highlighting that the interest in expansion is "music to my ears" while asserting that a decision is anticipated by the end of the year.
“I really appreciate what we’re seeing so far, so it’s very encouraging,” Silver stated. “No votes have been taken yet. We’ve got a ways to go in terms of discussions with interested parties, but I’m optimistic about the future here.”
Back in March, NBA owners voted unanimously to explore Las Vegas and Seattle as potential relocation sites. The valuation for each franchise could reach between $7 billion and $10 billion if approved, placing them at the upper end of the current sports market. Notably, the Los Angeles Lakers were sold for a record $10 billion last year.
With the delay in voting, the league's timeline becomes more critical, particularly with aspirations to have new teams ready to play in 2028. Central to these plans is T-Mobile Arena, the only venue currently hosting official NBA games in Las Vegas. Since 2023, the arena has also served as the location for the semifinals and finals of the NBA Cup in-season tournament. Owned jointly by MGM Resorts, Barry Diller's People Inc, and Bill Foley, who owns the NHL’s Vegas Golden Knights, the arena is positioned as a key part of any Las Vegas expansion discussions.
MGM CEO Bill Hornbuckle mentioned that talks about T-Mobile are ongoing. “T-Mobile is part of that conversation, whether it’s short-term or long-term; all roads lead to it for now… so we’re intimately involved in those conversations,” he noted during the company’s Q1 earnings call. He emphasized that MGM has been asked how to position T-Mobile for potential buyers, highlighting significant interest in the venue.
While T-Mobile hosts NBA games yearly, it’s generally believed that the arena would require renovations and upgrades to accommodate a team permanently. Foley has proposed financing between $300 million and $400 million for upgrades as part of an ownership bid, although faced with increasing competition, nothing is guaranteed.
On the topic of ownership bids, multiple groups are making formal moves, though Silver remarked that most interested parties have remained out of the public eye. “Multiple very serious groups are in the process of presenting plans to our bankers,” said Silver. “These plans include potential ownership and their visions for basketball in Las Vegas, what the playing venue might be like, and how they would promote the sport.”
Known investor groups showing interest include:
– Bill Foley, owner of the Golden Knights
– Jerry Colangelo, former owner of the Phoenix Suns, who has initial plans to establish the team at T-Mobile Arena
– NBA Hall of Famer Earvin "Magic" Johnson, with no specific site disclosed
– Bob Iger, former Disney CEO, also without a disclosed location
Owning a professional sports franchise in Las Vegas has proven to be a lucrative venture. When the NFL authorized the relocation of the Las Vegas Raiders in 2017, the franchise was valued at $2.4 billion, which has grown to $7.7 billion according to Forbes. Similarly, the valuation of Foley's Golden Knights rose from $500 million to $2.2 billion in the same period. The MLB Athletics franchise, not yet active in Las Vegas, saw its valuation increase from $1.2 billion to $2 billion over the past two years.
