The 2023 Las Vegas NBA Summer League attracted significant attention, particularly due to the anticipated professional debuts of top talents like AJ Dybantsa, Darryn Peterson, and Cameron Boozer. However, the discussion around a potential vote for the NBA's expansion to Las Vegas added an intriguing layer to the event, which has taken place in the city since 2004.
NBA Commissioner Adam Silver addressed reporters following the recent meetings among league owners on Tuesday, confirming that no vote occurred on the expansion. He emphasized the NBA's long-standing relationship with Las Vegas and expressed enthusiasm about the interest in expansion, stating it is "music to my ears" and reaffirmed that progress should be made by year-end.
"I really appreciate what we’re seeing so far, so it’s very encouraging," Silver said. "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."
In March, NBA owners unanimously decided to explore relocation options, with Las Vegas and Seattle being the primary contenders. The anticipated cost for franchises could reach between $7 billion and $10 billion if the expansion is approved, placing it among the highest in market value. The Los Angeles Lakers set a record last year by selling for $10 billion.
The postponement of a vote this year raises the stakes on the league's timeline, which hopes for new teams to start play by 2028. A crucial element of this timeline involves securing a venue for the teams. Currently, T-Mobile Arena is the only location in Las Vegas officially hosting NBA games. T-Mobile has been the site for the semifinals and finals of the NBA Cup since its introduction in 2023. Co-owned by MGM Resorts, Barry Diller's People Inc., and Bill Foley, who also owns the NHL's Vegas Golden Knights, T-Mobile Arena is pivotal in current discussions.
MGM CEO Bill Hornbuckle highlighted during the company's Q1 earnings call that initial conversations about venue considerations 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 stated. Hornbuckle also mentioned that MGM has been approached regarding how they might position T-Mobile for potential bidders and acknowledged the significant interest in the venue.
While T-Mobile regularly hosts games, it is believed that renovations would be necessary to accommodate a full-time team. Foley has proposed financing between $300 million and $400 million for upgrades as part of a bid for ownership, though this remains uncertain as competition for ownership intensifies.
Several groups have formally announced their interest in owning an NBA franchise in Las Vegas. Silver noted that many of these interested parties have not yet gone public, saying, "Multiple very serious groups are in the process of presenting plans to our bankers, including details on potential ownership and a vision for Las Vegas basketball."
Among the investor groups known to be interested are Golden Knights owner Bill Foley, former Phoenix Suns owner Jerry Colangelo, NBA Hall of Famer Earvin "Magic" Johnson, and former Disney CEO Bob Iger, although specific sites for some bids remain undisclosed.
Historically, owning a sports franchise in Las Vegas has been a profitable venture. The Las Vegas Raiders were valued at $2.4 billion at the time of their NFL relocation in 2017, a figure that has increased to $7.7 billion today as per Forbes. Foley's Golden Knights also saw their valuation rise from $500 million to $2.2 billion within the same timeframe, while the yet-to-debut Athletics MLB franchise has shifted from a valuation of $1.2 billion to $2 billion in just two years.
