The 2023 NBA Summer League has attracted significant attention, especially with the NBA debuts of top talents such as AJ Dybantsa, Darryn Peterson, and Cameron Boozer. This year's event in Las Vegas, which has been hosted in the city since 2004, also stirred speculation regarding a possible vote on expansion to Las Vegas.
However, NBA Commissioner Adam Silver confirmed to reporters post-meetings on Tuesday that no such vote occurred. He commended the NBA's long-standing relationship with Las Vegas, expressing that the growing interest in expansion is "music to my ears". Silver anticipates a resolution by the end of the year, saying, "I really appreciate what we’re seeing so far, so it’s very encouraging. 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 consider Las Vegas, along with Seattle, as a potential relocation site. If approved, the expansion cost for each franchise is expected to range from $7 billion to $10 billion, positioning it close to the league's current market value. Last year, the Los Angeles Lakers set a league record when they were sold for $10 billion.
The postponement of a vote adds pressure to the league's timeline, as it aims for any new teams to commence playing in 2028. The arena situation in Las Vegas represents one of the key challenges within this timeline. Currently, T-Mobile Arena is the only venue hosting official NBA games and has been the site for the semifinals and finals of the NBA Cup since its inception in 2023. Co-owned by MGM Resorts, Barry Diller's People Inc., and Bill Foley, owner of the NHL's Vegas Golden Knights, T-Mobile has been central to discussions about the potential NBA team’s operations.
During MGM's Q1 earnings call, CEO Bill Hornbuckle highlighted the importance of T-Mobile, stating, "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 also mentioned that there has been "extensive interest" in how T-Mobile could be positioned for potential bidders.
While T-Mobile currently accommodates games, it’s generally believed that renovations would be necessary for a permanent NBA team. Foley has offered to finance between $300 million and $400 million for upgrades as part of his ownership bid, though this remains uncertain amidst rising competition.
In terms of ownership bids, multiple groups have emerged, and Silver noted that many interested parties have not gone public yet. He mentioned, "Multiple very serious groups are in the process of presenting plans to our bankers, and those plans not only include who the potential owners would be, but their vision for what Las Vegas basketball could look like, where they would play, how they would present the game."
Some of the known investor groups include Golden Knights owner Bill Foley, former Suns owner Jerry Colangelo with initial plans to play at T-Mobile, NBA Hall of Famer Earvin "Magic" Johnson, and former Disney CEO Bob Iger, although their specific sites remain undisclosed.
The financial prospects of owning a sports franchise in Las Vegas have proven favorable. The Las Vegas Raiders were valued at $2.4 billion when the NFL approved their move in 2017, and their current valuation stands at $7.7 billion, according to Forbes. Similarly, Foley's Golden Knights expanded in value from $500 million to $2.2 billion in the same period. The Oakland Athletics’ MLB valuation has also risen significantly, from $1.2 billion to $2 billion within the last two years.
