Following the record-breaking $6.1 billion sale of the Boston Celtics, the NBA is poised for a significant transformation. Although the league’s approval is still pending, this massive transaction has revived speculation about adding new franchises. Commissioner Adam Silver confirmed that the league is interested in potential expansion opportunities.
Seattle and Las Vegas Lead the Way in NBA Expansion Talks
Silver has consistently suggested that the league wants to return to Seattle, the previous location of the SuperSonics, who moved to Oklahoma City in 2008. During a recent press conference, Silver reiterated that although no formal timeline exists, the NBA carefully assesses financial models, media rights distributions, and ownership valuations before deciding. Las Vegas is also considered ahead of the game regarding expansion.
The Golden Knights (NHL) and Raiders (NFL) have proven Sin City’s worth as a professional sports hub. The NBA has already deepened its ties with Las Vegas through the Summer League, and the city’s rapid growth makes it an attractive market for a new franchise.
Mexico City has become a potential candidate, with the NBA already hosting games and boosting interest in international expansion. However, logistical challenges and revenue-sharing complexities could create obstacles.
The Impact of Regional Sports Networks and Media Rights Deals
The unpredictable future of regional sports networks (RSNs) makes expansion planning difficult. Unlike the NFL, which primarily relies on national TV deals, the NBA relies heavily on RSNs for non-national broadcasts.
The league is apprehensive about how new teams will affect existing media revenue structures due to the decline of cable subscriptions and the financial instability of RSNs.
“I’d just add the last component, which also is giving me just a bit of pause, is that we’d like to have a better sense of where we’re going with local media,” Silver said. “It’s well known that we’ve seen some significant declines there. Virtually two-thirds of our teams are now dealing with RSNs that recently experienced bankruptcies or have shut down.”
He added, “I think while we understand the national media landscape now, to the extent we’re looking at expansion domestically, I think we’d really like to understand what that opportunity for local media is, because it’s a pretty critical component of our teams’ economics.”
The NBA must determine how expansion teams will fit into this evolving landscape while navigating upcoming media rights negotiations, which could include significant platforms like Amazon and NBC.
Seattle’s Ownership Picture: Samantha Holloway, Jeff Bezos, and Marc Benioff Emerge as Key Players
There is much speculation about ownership if Seattle is given an NBA franchise. Samantha Holloway, the daughter of billionaire investor David Bonderman and executive chair of the NHL’s Seattle Kraken for the past four seasons, has emerged as a top contender.
Her group’s partially owned Climate Pledge Arena has already demonstrated her commitment to bringing high-level professional sports back to the city.
“We built the arena in a very, very specific way to accommodate basketball,” Kraken President Tod Leiweke said. “We spent a lot of time because we knew there was another big moment coming in the NBA.”
“It would be an amazing market, and the NBA knows that,” Holloway said in an interview with Bloomberg. “This is an exercise in patience for both us and the fans because we’re all really excited for what could be.”
Rick Welts, the CEO of the Dallas Mavericks and former president of the Golden State Warriors, provided insights into the potential ownership landscape in an interview.
“Well, they’ll definitely be at the table. I’m no longer working with them, but I have been over the last couple of years to prepare them. It wouldn’t be appropriate now, but to prepare them for that time when they’ll be at the table. They’ll be evaluated on how they would run the team or other people.”
“David Bonderman, the patriarch of that franchise, just passed away two weeks ago. His daughter Samantha Holloway, rocks a couple of startups under her belt in business. She’s been living in Seattle over the past few years. She would be a lock, but I’m sure the NBA will evaluate that against all the other potential owners, and they’ll make great decisions.”
Another name circulating in ownership discussions is Marc Benioff, the co-founder and CEO of Salesforce. Benioff, a well-known basketball enthusiast and a supporter of the Golden State Warriors, was instrumental in acquiring the land for Chase Center, the Warriors’ home arena. He is a compelling candidate because of his involvement in sports-related real estate and strategic approach to business.
Jeff Bezos, considered one of the world’s most influential figures, has long been associated with owning sports franchises.
With his vast resources, he could bring back one of the most beloved teams in NBA history, the Seattle SuperSonics.
He wanted to buy the Washington Commanders, but those rumors were dismissed in less than 36 hours.
The second-richest person in the world has a genuine desire to own a sports team, which cannot be denied. Bezos has been linked to multiple NFL franchises, including the Seattle Seahawks and Commanders, and was reportedly outbid by Josh Harris for the latter, according to the Financial Times.
He was linked to the Boston Celtics despite not making public comments about his interest. Reviving the SuperSonics, a franchise Seattle lost in 2008 due to a controversial relocation to Oklahoma City, may have been his most logical and meaningful decision.
The return of the Sonics and Seattle’s strong connection to Bezos would be a turning point for both Bezos and Seattle. Bezos would make a small investment in a new NBA franchise with a potential price tag of $6 billion. Due to their wealth and influence, Seattle could finally acquire the team it deserves.
The Future of NBA Expansion: What’s Next?
The NBA anticipates receiving nearly $4 billion in expansion fees for each new franchise, with the money split among the league’s current 30 owners. The economic windfall and increasing valuations of sports franchises make expansion seem inevitable.
