After years of discourse, the NBA Board of Governors voted in favor of the exploration of two new expansion teams on March 25. The league plans to place the teams in Seattle and Las Vegas. The NBA has enlisted investment bank PJT Partners to help field ownership groups. Current projections have each franchise valued between $7-$10 billion. Commissioner Adam Silver is expected to make a final decision before the end of 2026.
Both cities have had rumors circulating among them for years in relation to the NBA. From 1967 to the mid 2000s, the Seattle SuperSonics were one of the most popular sports franchises in the Pacific Northwest. The beloved SuperSonics were the pride and joy of Seattle sports up until their relocation, winning a championship in 1979 led by finals MVP Dennis Johnson. The team also made a finals run in 1996 where they ultimately fell short to the legendary Michael Jordan Chicago Bulls. Into the 2000’s, they drafted two different MVP and future Hall of Famers in Kevin Durant and Russell Westbrook. Although Westbrook would never get the opportunity to play in a SuperSonics jersey, as the team would relocate before his NBA debut.
The foundation for a relocation was laid in 2006 when long-time owner and Starbucks CEO Howard Schultz sold the franchise to an ownership group based in Oklahoma City. While the group claimed they intended to stay in Seattle, a conflict arose while negotiating the lease of the Key Arena, causing the group to move the franchise to OKC. After nearly 20 years, the Emerald City may be getting their beloved SuperSonics back.
Since 2004, Las Vegas has hosted the NBA’s summer league, featuring upcoming young players before the start of the regular season. While viewership for Summer League remains relatively low, it has built valuable infrastructure for the NBA. Vegas also hosted the infamous 2007 NBA All-Star weekend, though this was seen at the time as a failure due to a large spike in arrests while the city hosted the events. With more than 400 arrests during the weekend alone, the event is believed to have held professional sports out of Vegas for a decade. This is no longer the case, as Las Vegas is now home to three professional sports teams in the NHL, NFL and WNBA.
Although most owners in the league support expansion due to the revenue growth associated with the two markets, some are hesitant to lose league equity. Owners could see their stake in the NBA go from 1/30 to 1/32, with some smaller market owners fearing they could be forced to sell their franchises. Other league insiders worry how the expansion will affect the already waning number of viewers during the regular season. The NBA has been losing viewership throughout the streaming era despite bigger contracts for streaming partners. League shareholders worry expansion would only exacerbate the worsening situation.
Expansion seems inevitable. After two decades of anticipation, Seattle and Las Vegas are ready to house the NBA’s two latest teams. Seattle fans have been clamoring for their beloved franchise’s return for years. Las Vegas has slowly healed its reputation and is ready to host yet another professional team. While faithful basketball fans are ecstatic for the new markets, ownership is wary of how the expansion will affect their bottom line. The league hopes this expansion will help spur growth in viewership and cultural importance.
