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- League hasn’t expanded since 2004 with Charlotte Bobcats
- Las Vegas and Seattle have long been touted as target markets
- New owners could pay up to US$10bn expansion fee
National Basketball Association (NBA) team owners could share up to US$20 billion in expansion fees after the league confirmed it would explore the possibility of launching new teams in Las Vegas and Seattle.
The 30-team league hasn’t added any new teams in more than two decades, but expansion is now at the top of the agenda after the NBA secured long-term domestic media rights deals worth US$76 billion with Amazon, ESPN and NBC last year.
The league has hired investment bank PJT Partners as a strategic adviser to evaluate prospective markets, ownership groups, arena infrastructure, and the broader economic implications of expansion and could move ahead with the process later in 2026.
Although many team owners are understood to back expansion, others have reservations about their income potentially being diluted by the addition of new outfits.
It has previously been reported that the new franchises could join the NBA by the 2028/29 season.
NBA commissioner Adam Silver stressed that no final decision had yet been taken and that expansion would depend on eligible ownership groups, the availability of talent, and other factors.
“Today’s vote reflects our Board’s interest in exploring potential expansion to Las Vegas and Seattle – two markets with a long history of support for NBA basketball,” said Silver. “We look forward to taking this next step and engaging with interested parties.”
Las Vegas and Seattle have both been earmarked as expansion locations, not least as both have successfully launched National Hockey League (NHL) teams in recent seasons – a crucial indication of fan demand and also ensures both have NBA-ready arenas.
Seattle has the added benefit of an established basketball audience still lamenting the departure of the Supersonics to Oklahoma City in 2008. Meanwhile, Las Vegas has hosted the NBA Summer League and has also acquired National Football League (NFL) and Major League Baseball (MLB) teams.
The last time the league expanded in 2004, the new owners of the Charlotte Bobcats – which reclaimed the Hornets name in 2014 – paid a US$300 expansion fee.
However, surging global popularity, unprecedented national relevance, and record media revenues have helped increase average franchise values to exceed US$5 billion. Last year, the Los Angeles Lakers were sold for US$10 billion, a record sale for a US professional sports team.
It is thought that prospective owners of the planned Las Vegas and Seattle teams would have to pay between US$7 billion and US$10 billion for the privilege.
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