NBA Approves Expansion to Las Vegas and Seattle

The NBA's Board of Governors, the league's highest body where only one owner from each club sits, unanimously greenlit the exploration of bids for two new teams. Unsurprisingly, given recent discussions, Las Vegas and Seattle are the exclusive markets under consideration for potential bids. This decision, supported by all 30 owners, formally initiates the process to expand the league to 32 franchises.

The league anticipates the new franchises will begin competing in the 2028-29 season. The bidding process is expected to generate proposals ranging from $7 billion to $10 billion (6.039 to 8.6 billion euros) for each team, reflecting the surging value of sports franchises in recent years. This benchmark is set by the record amounts for which the Celtics and Lakers were sold last season, a fact that will naturally also boost the value of existing clubs.

According to ESPN, several high-ranking league officials already considered expansion a matter of "when, not if." Commissioner Adam Silver confirmed the interest in a statement. "Today's vote reflects our Board's interest in exploring potential expansion to Las Vegas and Seattle, two markets with a long history of supporting NBA basketball," he stated, adding: "We look forward to taking this next step and engaging with stakeholders."

To assist with the process, the NBA has hired investment bank PJT Partners as a "strategic advisor to evaluate potential markets, ownership groups, arena infrastructure, and the broader economic implications of expansion." Over the coming months, the NBA will analyze proposals for the two cities, with a final vote to formalize the entry of the new teams expected by the end of the year. Approval will require a 23 out of 30 majority vote.

The growing support for expansion among owners is driven by the long-term revenue growth potential that the Las Vegas and Seattle markets represent. Both cities have already demonstrated success with other professional leagues. Las Vegas welcomed the Golden Knights (NHL) in 2017, the Aces (WNBA) in 2018, and the Raiders (NFL) in 2020, while Seattle received the Kraken (NHL) in 2021.

For Seattle, this expansion will mark the NBA's return after the SuperSonics relocated to Oklahoma City in 2008, becoming the Thunder. The team, which played in the city between 1967 and 2008, departed due to a dispute over city funding for a new arena, the KeyArena. The venue has since undergone extensive renovations between 2018 and 2021 and is now the Climate Pledge Arena, home to the Kraken and the WNBA's Storm.

Las Vegas, meanwhile, has been home to the WNBA's three-time champion Aces (formerly the San Antonio Stars) since 2018, and is preparing to welcome Major League Baseball's Athletics in 2028.

With the likely addition of two clubs to the Western Conference, NBA executives anticipate that the Minnesota Timberwolves, Memphis Grizzlies, or even the New Orleans Pelicans will be moved to the Eastern Conference. This move aims to balance both conferences with 16 teams each. The structure of divisions within each conference, currently three per side with five clubs each, will then need to be determined.

The NBA's last expansion occurred in 2004 with the addition of the Charlotte team, then known as the Bobcats, which later reclaimed the Hornets name after the New Orleans franchise changed theirs to the Pelicans.

Before that, in 1995, the NBA had returned to Canada, which had a team in its inaugural season, with clubs in Toronto (Raptors) and Vancouver (Grizzlies), though the latter later moved to Memphis. In 1989, the Orlando Magic and Minnesota Timberwolves joined, and the year prior saw the admission of the Miami Heat and the first iteration of the Charlotte Hornets.