NBA national basketball commissioner Adam Silver hasn't granted any new franchise to a city since 2004, when expansion costs were just $300 million. Twenty years down the line, bids for a single city have exceeded $10 billion.

In the Tuesday press conference of the Board of Governors, Silver elaborated on the reason behind that one city's dominance over the other.

He said, "There was not as much discussion around Seattle as there was around Las Vegas. Las Vegas, it's not even clear what the site would be, let alone the arena yet."

However, there remains one hurdle to the establishment of a franchise in Las Vegas, and it has nothing to do with ‌finances.

Seattle already has its Climate Pledge Arena that was able to host matches in five weeks’ time, according to Silver, but Las Vegas is yet to decide on either T-Mobile Arena or a brand-new venue.

Even without a confirmed venue, Las Vegas continues to show progress in one aspect of its bid.

According to ESPN NBA insider Shams Charania, Las Vegas is at an advanced stage of the expansion process, with bids set to be submitted on Thursday.

Charania stated that "My understanding is proposals for that Vegas team is reaching and potentially exceeding $10 billion."

The number is consistent with the overall trend in the broader market within the league. It is also very close to the amount that Bob Iger and Josh Kushner shelled out to acquire the Los Angeles Lakers from Mark Walter, which was estimated at $12.5 billion.

The link between the sale of the Lakers and Las Vegas is not unnoticed in the league.

Shams Charania Details the Expansion Bidding Timeline

As per Silver’s statement this week, Patrick Dumont, owner of the Dallas Mavericks and also a resident of Las Vegas, has spearheaded the discussion on locations for a Las Vegas team.

Charania added further detail on where the process stands, saying, "The NBA and Adam Silver are in deeper and deeper stages of the expansion conversation, and I'm told specifically for Las Vegas, the next round of bids for an expansion team in Las Vegas are due on Thursday."

He also spoke about the city of Seattle's parallel track, observing that it is anticipated that both will rank among the top ten regarding revenue sharing in the future.

NBA's latest expansion took place in 2004, when Robert L. Johnson spent $300 million to establish the Charlotte Bobcats, and this helps put into context the magnitude of today's billion-dollar bids. Even in light of the bids crossing $10 billion already, that obstacle, an assured arena, remains for Las Vegas to clear.

Written by

Utsav Gupta

Edited by

Utsav Gupta