The push for NBA expansion into Las Vegas has gained significant traction in recent years, with ESPN reporting that the league is expected to select one of three finalist bids in the near future, likely before the end of the year. The projected cost for a new franchise and accompanying arena is estimated between $12 billion and $13 billion, making it one of the highest valuations in the market. Notably, an investment group led by Josh Kushner and former Disney CEO Bob Iger recently acquired the Los Angeles Lakers for a record $12.5 billion in August. It is important to note that the Lakers' arena remains under the ownership of Anschutz Entertainment Group and was not part of that sale.
The three bidding groups in contention are Nancy Walton Laurie and Bill Laurie, Steve Apostolopoulos alongside Marc Lasry, and Bill Foley with Jerry Colangelo. Each group possesses experience in the ownership or attempted purchase of professional sports teams. Earlier this year, NBA owners unanimously approved Las Vegas and Seattle as viable expansion markets, but sources indicate the league is likely to prioritize Las Vegas due to its more lucrative bidding environment. Reports suggest that the bidders in Las Vegas are more inclined to construct a new arena as opposed to utilizing Seattle's Climate Pledge Arena.
Las Vegas has fostered its relationship with the NBA over the past two decades, hosting the league's Summer League tournament annually since 2004 and serving as the venue for the semi-finals and finals of the new in-season NBA Cup since its inception in 2023.
Should expansion proceed, Las Vegas would become the smallest metropolitan area with teams across all four major U.S. sports leagues. The city welcomed the NHL's Golden Knights in 2017, the NFL's Raiders in 2020, and will see the MLB's Athletics begin play in 2028.
The ongoing discussions about NBA expansion coincide with a notable period for Las Vegas’ economy. From 2020 to 2024, the city experienced exceptional economic growth, but since the beginning of 2025, tourism numbers have declined alongside gaming revenues, which have fluctuated.
Recent figures from August indicate that gross gaming revenue on the Strip slightly increased by 0.7% to $684 million year-over-year, according to the Nevada Gaming Control Board. Overall, the Strip's fiscal year is tracking 2.2% ahead of the previous year. However, visitor numbers fell by 4.3% to 3 million, marking the largest year-over-year decrease in 2026, per the Las Vegas Convention and Visitors Authority. Average daily room rates also dropped by 11%, and revenue per available room dropped nearly 16% during the same period. Total air traffic to Harry Reid International Airport decreased by 9% year-over-year to 4.1 million passengers, contributing to a 7% decline for the year so far.
Las Vegas has increasingly relied on sports for economic expansion, managing to attract major events like the F1 Las Vegas Grand Prix, the Super Bowl, NCAA playoffs, and March Madness, which consistently generate considerable economic impact, often exceeding $1 billion. The value of local franchises has substantially increased since their entry into the market. For example, the Athletics’ value has jumped from $1.2 billion in 2024 to $2 billion, even prior to their debut.
Despite this growth, questions remain about the market’s ability to support an NBA franchise, especially if purchasing costs reach or surpass $10 billion with an additional $2 billion for a new arena. In comparison, the NFL leads the U.S. sports revenue landscape with an average team earning over $660 million per season, contrasted with about $416 million for NBA teams. The NFL’s highest recorded sale price stands at $9.6 billion, achieved when a group led by Vinod Khosla purchased the Seattle Seahawks in July.
During the G2E 2026 conference in Las Vegas this week, local officials expressed optimism regarding the NBA’s prospects. Janis Burke, chief sports officer of the LVCVA, remarked, "Vegas owns basketball," highlighting the significant buzz generated around the Summer League this year.
As the bidding progresses, the choice of arena for the potential franchise looms large. Discussion about NBA-specific arenas on the Strip has intensified in light of the expansion exploration. Various stakeholders are presenting proposals for one of the remaining prime locations along Las Vegas Boulevard.
Sources indicate the league aims for an expansion franchise debut in the 2028-29 season, suggesting that T-Mobile Arena may serve as a temporary home until a permanent venue is established. T-Mobile currently serves as the home for the Golden Knights and is co-owned by MGM Resorts, AEG, and Knights owner Bill Foley, one of the finalists for the NBA team. While the arena already hosts NBA Cup tournament games, significant revisions would be required to accommodate a full-time team. Foley has committed to funding these updates if selected, but uncertainty regarding that remains. Given the high franchise costs, new owners may prefer to construct a completely new arena, similar to the Golden State Warriors’ Chase Center, which generates substantial revenue.
Matt Prevost, chief revenue officer of BetMGM, expressed willingness for the team to play at T-Mobile but acknowledged that alternate options could be considered if necessary.
