Momentum is building for NBA expansion to Las Vegas, with reports from ESPN indicating the league will select from three finalist bids by the end of this year. The expansion franchise and a new arena are expected to cost between $12 and $13 billion, placing the investment near the highest market valuations. In August, an investment group led by Josh Kushner and former Disney CEO Bob Iger made headlines by purchasing the Los Angeles Lakers—the NBA's illustrious franchise—for a record $12.5 billion, although the arena owned by Anschutz Entertainment Group was not part of that deal.
The finalists include:
– Nancy Walton Laurie and Bill Laurie
– Steve Apostolopoulos and Marc Lasry
– Bill Foley and Jerry Colangelo
All three teams have experience in professional sports ownership or have previously attempted to acquire franchises. In March, NBA owners unanimously endorsed Las Vegas and Seattle as potential expansion sites. However, the league appears to be prioritizing Las Vegas, driven by a more vibrant bidding environment and higher offers. Notably, bidders show greater interest in developing a new arena compared to using Seattle's existing Climate Pledge Arena.
For over 20 years, the relationship between Las Vegas and the NBA has flourished. The city has hosted the NBA Summer League since 2004 and was chosen to hold the semi-finals and finals of the NBA Cup in 2023.
If the expansion proceeds, the NBA would join a growing list of major sports leagues in Las Vegas. The NHL's Golden Knights launched in 2017, the NFL's Raiders relocated in 2020, and the MLB's Athletics are set to start playing in 2028, making Las Vegas the smallest metro area with teams in all four major sports leagues.
These expansion discussions come amid significant shifts in Las Vegas's economy. From 2020 to 2024, the area recorded its best economic performance. However, early 2025 saw a decline in tourism and visitation figures, alongside fluctuating gaming revenues. In August, the gross gaming revenue for the Strip rose slightly by 0.7% year-over-year to $684 million, while Clark County's total for the month saw a 2.8% increase, marking a 2.1% rise for the fiscal year.
Despite this, visitor numbers decreased by 4.3% to 3 million, representing the largest year-over-year decline of 2026 thus far, according to the Las Vegas Convention and Visitors Authority. The average daily room rates for the Strip dropped by 11%, and revenue per available room fell nearly 16%. Additionally, Harry Reid International Airport experienced a 9% year-over-year decrease in air traffic, totaling 4.1 million passengers and marking a 7% decline year-to-date.
Las Vegas has increasingly turned to sports for economic growth, attracting major events like the F1 Las Vegas Grand Prix, the Super Bowl, and NCAA tournaments, each providing an economic impact potentially nearing $1 billion. The valuations of local franchises have surged since their inception, with the Athletics' worth rising from $1.2 billion in 2024 to an estimated $2 billion, according to Forbes.
Still, the market remains uncertain for an NBA franchise, particularly if the franchise price exceeds $10 billion and the cost of a new arena adds another $2 billion. The NFL commands the largest share of the US sports market, with an average team revenue above $660 million per season, compared to approximately $416 million for NBA teams. The highest NFL sale reached $9.6 billion in July, with a group led by Vinod Khosla acquiring the Seattle Seahawks.
At the recent G2E 2026 conference in Las Vegas, local officials expressed optimism about the NBA's prospects. Janis Burke, the chief sports officer of the LVCVA, emphasized, "Vegas owns basketball," and highlighted the incredible energy surrounding the Summer League this past summer. Burke noted, "You’ve got every shoe company and tournaments looking to come here; basketball is huge here. I think having the NBA full-time is just going to bring a whole new dynamic."
As the bidding competition heats up, the proposed arena for the new franchise remains a key unresolved issue. Previous NBA arena projects on the Strip have faltered but discussions are becoming more serious with the NBA's expansion exploration. Various stakeholders are preparing pitches for the few remaining development opportunities on Las Vegas Boulevard.
The NBA aims for a projected debut of the expansion franchise in the 2028-29 season, suggesting T-Mobile Arena might serve as a temporary venue while a dedicated arena is constructed. Currently, T-Mobile, co-owned by MGM Resorts and AEG, serves as the home for the Golden Knights. Although it hosts NBA Cup games, significant renovations would be necessary for full-time NBA operations. Foley has expressed willingness to fund these upgrades should his bid succeed, although it's uncertain if that would be feasible.
With such a high purchase price for the team, prospective owners will likely push for new arena construction to maximize revenue possibilities, similar to the Golden State Warriors' development of the Chase Center, which now leads the NBA in revenue. Matt Prevost, chief revenue officer of MGM's BetMGM, expressed a desire to see the team at T-Mobile but acknowledged that if it ends up elsewhere, that would also be acceptable.
