The NBA is now officially evaluating an expansion, with Seattle and Las Vegas as the two target cities. The league’s board of governors voted Wednesday, clearing the way for formal talks to take place between potential ownership groups in those two cities and NBA officials.

Timeline for Expansion

Commissioner Adam Silver wants the league to know by the end of 2026 whether there will be expansion. The most widespread theory is that it would take at least 18 months, if not more, to get a new team up and running, suggesting 2028-29 would be the earliest season new teams could join.

Adam Silver: “Our goal was, in 2026, to resolve this issue one way or another. So in terms of timing—we weren’t that specific with the board—we need to know by the end of this year what we’re going to do.”

The Evaluation Process

The league has engaged investment bank PJT Partners “as a strategic advisor to evaluate potential markets, ownership groups, arena infrastructure and the broader economic implications of expansion.”

Silver noted that the league has not finalized a deal yet, meaning that the bidding is wide open.

Adam Silver: If you are interested – and I say this now to anyone who may be listening or watching this – if you are interested, call the league office, call PJT Partners directly in New York. I just want to make sure that everyone understands that there have been no handshakes on the outside. There have been no commitments. Notice no promises to anyone. Here’s a completely transparent process.

PJT Partners and the league will evaluate the candidates, identify the best plans and then begin the process to see if a deal can actually be made. Given the expected expansion rate — $6 billion or more — it will not be a quick process.

Are Las Vegas and Seattle Linked?

In short, no. The league could add both cities, just one, or none at all. There are no guarantees that the league will expand, and there have been unbalanced lineups between conferences before.

Determining the Entry Fee

If the league decides to expand, it will be selling interest in the current product. Franchise values are skyrocketing, with the Boston Celtics recently sold at a valuation of just over $6 billion and the Los Angeles Lakers valued at $10 billion.

Adam Silver: The only discussion in the room was understanding the mathematics of dilution in terms of projections and what the direct reduction in existing revenue would be for the teams if we expanded from 28-29. We don’t talk about the value of the franchises as such in these meetings.

The market will ultimately determine the value of the franchises.

FAQ

When will a decision be made on expansion?

The NBA aims to have a decision by the end of 2026.

What is the estimated cost for an expansion team?

The expansion rate is expected to be $6 billion or more per team.

Are Seattle and Las Vegas the only cities being considered?

Currently, the NBA is focusing its exploration exclusively on Seattle and Las Vegas.