NBA Board of Governors approves exploration of two expansion teams in Seattle and Las Vegas.

The National Basketball Association's Board of Governors has unanimously approved the exploration of expansion teams in Seattle and Las Vegas.

“Expansion will not only reshape the league’s structure but could also trigger conference realignment and significantly boost league revenue”

AS USA

This marks a significant step toward the league's first expansion since 2004.

AS USA

All 30 team owners voted in favor of authorizing the league to formally pursue potential franchises in these two markets.

Commissioner Adam Silver emphasized that both cities have 'a long history of support for NBA basketball.'

The league has engaged investment bank PJT Partners as a strategic adviser to evaluate various aspects of expansion.

Multiple officials have termed expansion as being 'when, not if,' according to sources.

The process is expected to generate expansion fees in the $7-10 billion range per team.

The NBA is targeting the 2028-29 season for the two expansion franchises to begin play.

This timeline comes from sources cited by ESPN and Sports Business Journal.

Basket USA

The expansion represents a multi-year process involving several phases.

AS USA outlines a detailed six-phase process for the expansion.

The phases include formal bidding, market evaluations, ownership selection, final approval, and expansion draft implementation.

The league will examine bids from both cities over the next several months.

A potential final vote could occur later this year to finalize the move to 32 teams.

Each voting round requires 23 of 30 governors to approve.

Seattle and Las Vegas present contrasting yet compelling cases for NBA expansion.

“- Published Seattle could regain an NBA team after the league's board of governors voted to explore adding two expansion franchises, with Las Vegas the other potential location”

BBC

Seattle lost its beloved SuperSonics in 2008 when owner Clay Bennett relocated the franchise.

The city has a rich basketball history dating back to 1967 with a championship in 1979.

Seattle now boasts the Climate Pledge Arena, a $1.15B transformation of the former KeyArena.

The arena hosts the NHL's Kraken and WNBA's Storm.

Las Vegas has never hosted an NBA team but has emerged as a premier sports destination.

The city is home to the NHL's Golden Knights (2017), NFL's Raiders (2020), and WNBA Aces.

Las Vegas annually hosts the NBA Summer League and NBA Cup Final Four.

The city has significant NBA exposure through venues like T-Mobile Arena.

The addition of Seattle and Las Vegas as expansion teams will necessitate significant conference realignment.

Both new franchises would join the Western Conference under current geographical considerations.

Devdiscourse

This would create 17 teams in the West and only 15 in the East.

Executives across the league expect to resolve this by moving one existing franchise from West to East.

According to ESPN, industry observers believe either the Minnesota Timberwolves or Memphis Grizzlies would be likely candidates.

Basket USA notes that this realignment challenge remains a key logistical consideration.

The league has not yet announced which conference the new teams will join.

The geographical distribution of Seattle and Las Vegas strongly suggests they would both be placed in the West.

The financial implications of NBA expansion are substantial.

“Mat Ishbia purchased the Phoenix Suns in December 2022 for a then-record $4 billion valuation”

ESPN

Sources project expansion fees between $7-10 billion per team according to ESPN and Sports Business Journal.

ESPN

This would make it one of the most lucrative expansion processes in sports history.

The Portland Trail Blazers' recent sale to Tom Dundon for $4.25 billion provides a recent benchmark.

Expansion fees typically exceed market valuations due to the scarcity of new opportunities.

A growing number of owners support expansion for long-term revenue growth potential.

Both Las Vegas and Seattle have demonstrated strong support for professional basketball.

The move to 32 teams will create new revenue streams through various channels.