The total cost for an NBA expansion team in Las Vegas could reach $7 billion when factoring in the expansion fee to the league and the cost of building an arena, according to two sports advisers who have previously sold NBA teams. Various reports have the expansion fee set at around $4 billion, but some advisors expect it to approach $5 billion due to the competition and increased revenue from media rights.
LeBron James has publicly lobbied for the Las Vegas franchise and is backed by RedBird Capital Partners and Fenway Sports Group, with both parties investing in James’ The SpringHill Company in 2021. Shaquille O'Neal has interest in bidding, as does Tim Leiweke, the developer behind Oak View Group, who has proposed a $10 billion project based around an NBA arena. Red Bull GmbH, the energy drink maker, is also in early deliberations about bidding to win a Las Vegas team. Finally, T-Mobile Arena has interest in hosting an NBA team.
The Boston Celtics are currently up for sale and their price could help set the market for Las Vegas. The Celtics are valued by Sportico at $5.1 billion and do not own their own arena.
