The National Basketball Association (NBA) is drawing strong interest from major investors as it explores adding new teams in Las Vegas and Seattle, which the franchise expects to sell for at least $10 billion.
Potential investors for the Las Vegas team, which has been garnering more interest than Seattle, include Hall of Famer Magic Johnson; owner of the NHL's Vegas Golden Knights, Bill Foley; and founder of Avenue Capital Group, Marc Lasry, Bloomberg reported.
Johnson reportedly met with Las Vegas Governor Joe Lombardo and other civic leaders regarding a formal pursuit of the NBA bid and a potential hotel project on the Las Vegas Strip. Johnson holds minority stakes in the Dodgers, Commanders, LAFC, Washington Spirit, and Sparks. He previously held a minority stake in the Lakers as well.
Meanwhile, Samantha Holloway has reportedly positioned for a bid in Seattle, which has not had a team since 2008 when the SuperSonics relocated to Oklahoma City.
Holloway, the daughter of the late TPG Global founder David Bonderman, launched One Roof Sports and Entertainment as a parent company in the ownership group behind the NHL's Seattle Kraken. One Roof also acquired a controlling interest in the Climate Pledge Area in Seattle.
Investors have not submitted formal bids yet. PJT Partners, the league's advisor, is actively identifying potential ownership groups as it prepares for a structured bidding process anticipated later in the year.
The NBA's board of governors is expected to decide later this year whether to authorize the addition of the two expansion teams. The league's most recent expansion occurred in 2004, when the Charlotte Bobcats joined for a $300 million fee.
Private Equity In Sports
Private equity and venture capital firms have recently taken an interest in professional sports franchises, as major leagues such as the NFL, NBA, NHL, and MLB now permit private equity investments.
Thrive Capital has bought a small stake in the San Francisco Giants through a new holding company called Thrive Eternal.
Last month, a consortium comprising Blackstone (NYSE:BX), Bolt Ventures, Aditya Birla Group, and The Times of India Group agreed to acquire the Royal Challengers Bengaluru (RCB) cricket franchise.
Meanwhile, Ares Management Corp., Apollo Global Management(NYSE:APO) and Sixth Street Partners are reportedly having early-stage conversations regarding the National Basketball Association's (NBA) European expansion.
According to a report from Meketa, the global sports market reached $463 billion in revenue in 2024. It is projected to accelerate to just over $600 billion in revenue by 2028, and to nearly $863 billion by 2033.
Drivers of this growth include "the rising value of media rights deals, increased fan engagement, the expansion of sponsorship and merchandising opportunities, and growth in sports-adjacent businesses," the report stated.
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