On Wednesday, March 25, the NBA Board of Governors voted unanimously (30-0) to formally explore adding expansion franchises in Seattle and Las Vegas. This marks the league’s first expansion move since 2004. While the vote does not guarantee new teams yet, it officially opens the process for investor proposals, with a final vote expected by the end of 2026.
The Financials: A Record-Breaking Deal
The financial impact of this expansion is set to be the largest in North American sports history. Expansion fees are projected between $7 billion and $10 billion per team, with insiders suggesting the “floor” is likely $8 billion.
If the total fees reach $16 billion, each of the 30 current owners would receive a one-time payout of approximately $533 million. Crucially, expansion fees are excluded from revenue sharing, meaning the owners keep the full amount without having to split it with the players.
Logistics and the Expansion Draft
Adding two teams to the Western Conference (Seattle and Las Vegas) will require a geographic realignment. One current Western team—most likely the New Orleans Pelicans, Memphis Grizzlies, or Minnesota Timberwolves—will need to move to the Eastern Conference to balance the league.
To build the new rosters, the league will hold an Expansion Draft:
- Current teams will be allowed to “protect” 8 players on their roster.
- Any player not protected will be available for selection by the new franchises.
Ownership Groups and Talent Concerns
In Seattle, the ownership group behind the NHL’s Seattle Kraken is currently the frontrunner. In Las Vegas, the situation is more fluid after Floyd Mayweather recently expressed he is no longer certain about joining an ownership group.
Despite the massive financial gain for owners, the move still faces criticism. Analysts and former players, including Tracy McGrady, have raised concerns regarding talent dilution. They argue that the league may not have enough high-level talent to support 32 teams without compromising the overall quality of the game.
Author:
Lucas Portela
Owner, BoldGambler • Avanhandava/SP
Oddsmaker, affiliate and content creator in the iGaming industry.