SEATTLE: The National Basketball Association (NBA) has received signs of interest from multiple investor groups for new teams in Las Vegas and Seattle that the league plans to sell for as much as US$10bil, according to people familiar with the matter.
Early indications show Las Vegas is drawing more interest than Seattle, the people said, asking not to be identified because the talks aren’t public.
While no formal bids have been submitted, there’s been substantial outreach from investors, one of the people said.
The league’s adviser, PJT Partners, is canvassing the landscape to identify and vet potential ownership groups ahead of a formal bidding phase expected later this year.
League executives believe the expansion fee could command between US$7bil and US$10bil, according to the people familiar with the talks who weren’t authorised to speak publicly.
NBA Commissioner Adam Silver said during a press conference in March that owners “did not discuss franchise value, per se” during a meeting that month.
“The only discussion in the room was understanding the math around dilution, in terms of projection, and what’s the direct reduction in existing revenues to teams if we were to expand beginning in 2028 or 2029,” Silver said.
The Los Angeles Lakers, which sold for US$10bil, are the only sports team globally to reach such a lofty valuation in a majority stake transaction.
Prior to that sale, the Boston Celtics were acquired last year for US$6.1bil, a record at the time.
The value of teams has surged, fuelled by growth in the cost of media rights and opening ownership to private equity investment. — Bloomberg
