On Wednesday, the NBA’s Board of Governors unanimously approved the league’s decision to expand beyond 30 NBA teams. This would mean that the NBA can formally start exploring expansion teams in Las Vegas and Seattle. This will be the first time since the Charlotte Bobcats in 2004 that the league will possibly expand. 

Given the financial consequences of the expansion, which could reach up to $10 billion per team, it is worth exploring the details. Let’s take a quick look at everything we know about the expansion so far.

NBA Expansion Cities

Las Vegas and Seattle are two cities where the expansion is now focused. While Seattle previously had an NBA team, Las Vegas would be hosting its first franchise. 

However, Vegas has plenty of experience in hosting games. The NBA now hosts its NBA Cup semifinals and finals in Vegas, as well as hosting Summer League games before the regular season. Everything combined, the city is a leading name in expansion talk. 

Seattle was previously home to the Supersonics, which later moved to Oklahoma and became the Oklahoma City Thunder. With already a large fanbase and the call for an expansion team to base in the city, the chances are very high that it will have a team of its own.

The Possible Reshuffling in Conferences

If the league adds two more teams, it’s very unlikely that they would be divided between East and West. Both Seattle and Las Vegas are in the western part of the US. It means that they will be added to the Western Conference. So how will the league even it out?

One of the three teams from the West, the Memphis Grizzlies, the New Orleans Pelicans, or the Minnesota Timberwolves, would be shifted to the Eastern Conference. There is a good chance the Timberwolves will be shifted because they are the farthest from the other West teams.

How Would Teams Fill Rosters?

The roster spots would be filled in two ways. First is obvious; through the NBA Draft. The second way these teams would bring players is through the expansion draft. 30 teams would have to release the list of unprotected players. Both teams can pick unprotected players from other teams, but no more than one per team. 

However, it remains to be seen if the league introduces a new approach when the time comes.

Timeline for NBA Expansion

While there is no fixed timeline for when expansion teams will start playing, ESPN reports that the league plans for new franchises to begin their seasons in 2028-29. The possible three-year gap has been laid out to make an ownership decision, build arenas if that’s necessary, and add staff to the new franchise. 

A lot will depend on the league’s decision in finalizing the ownership bid. It might be done at the end of this year or perhaps moved to next year. 

Expansion Not Guaranteed

The NBA’s Board of Governors only approved the league’s willingness to expand, but that does not guarantee expansion in Las Vegas or Seattle. The voting only means that the NBA can start exploring options and opportunities. 

The Cost of Expansion

While the expansion cost will depend on the specific city, the cost is expected to be much higher than that of most of the currently existing teams in the league. As per ESPN, the expected valuation of each team is expected to range between $7-10 billion. 

Moreover, the 30 owners will also receive a one-time payment from the expansion teams. If two teams cost $16 billion in total, each owner of an already existing franchise will receive an up-front payment of $533.3 million, which will be excluded from revenue sharing. This means that all the money they receive will be kept for themselves.

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Written by

Nandjee Ranjan

Edited by

Siddharth Rawat