$7 Billion Price Tag for NBA Expansion Clubs

The NBA is moving closer to expansion, with cities like Las Vegas and Seattle on track to welcome new teams. However, entry into the league will come with a substantial price tag, as expansion fees are expected to reach as high as $7 billion. This steep price reflects the NBA’s booming business, with media deals and franchise valuations reaching unprecedented heights.

The NBA’s new media deal is projected to be worth $75 billion, which would significantly increase league revenues and, by extension, the value of its franchises. Additionally, record-breaking sales, like the Washington Commanders’ recent $6.05 billion transaction, have raised the bar for sports team valuations. With expansion markets such as Las Vegas and Seattle offering immense growth potential, the cost of joining the NBA is expected to rise accordingly.

Investors are seeing these teams as more than just sports franchises—they are multi-faceted business enterprises. The appeal of owning an NBA team now includes media rights, real estate opportunities, and entertainment ventures. Las Vegas, for example, has evolved into a major sports hub, attracting the NHL’s Golden Knights and the NFL’s Raiders, and now eyeing the NBA.

Key figures, including LeBron James and Shaquille O’Neal, are reportedly part of ownership groups interested in leading bids for new teams, as well as global brands like Red Bull, making this expansion a highly competitive race.

With formal expansion discussions set to begin after the NBA finalises its media deals, the league could see new teams joining as early as the 2026-27 season. While Las Vegas and Seattle are widely considered to be leading candidates, other markets such as Vancouver and Mexico City have also expressed interest.

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