Lakers Sale Makes NBA Expansion Even Hotter Topic Post-Finals

Forbes

4 hours ago

LOS ANGELES, CA - OCTOBER 31: Jeanie Buss attends a basketball game between the Los Angeles Lakers ... More and the Detroit Pistons at Staples Center on October 31, 2017 in Los Angeles, California. (Photo by)
With the NBA due to crown its seventh different champion in seven years when the 2025 Finals conclude, expansion was already going to be at the top of the agenda, according to recent remarks from Commissioner Adam Silver.
Salary cap machinations under Silver have pushed more parity for the NBA – something the league's still working on taking full advantage of from a media standpoint – so it only makes sense that opportunity is a selling point for prospective new owners in ways it may not have been previously.
The newly announced sale of the Los Angeles Lakers, for a record $10 billion, would also do a lot to warm the NBA's existing owners to the idea.
Not even 12 months ago, the going rate for an NBA team sale seemed to sit around $4 billion or so. Then the Boston Celtics sold for a then-record $6.1 billion, and now this Lakers deal ups the ante even further.
It's not to say that the value of every NBA team is now $10 billion. But the Lakers selling for that price puts the potential out there, and increases the inherent value of the other 29 teams. The number also increases the expected expansion fee – which gets pocketed by the league and current owners – from something in the $5-6 billion range, to potentially much more.
Expansion was already an enticing prospect for the NBA. Now? It's a no-brainer.
For the NBA to add teams, owners need to recommend a formal expansion exploration, and they will almost certainly do so when they meet at the board of governors meeting in July. The league then meets with prospective ownership groups and cities, gets a better understanding of who has the finances and infrastructure (existing or planned) to make it happen, then starts making decisions.
It's no secret to Silver that various markets and groups would like expansion teams. So while there will be a desire to hear all potential bids, the expansion fee likely narrows the list immediately and it's not like the league is unaware of the current frontrunners (by all accounts, Seattle and Las Vegas).
Silver has said he wants to address 'underserved' markets with expansion. What might those be? That depends…
SEATTLE, WASHINGTON - OCTOBER 10: A Seattle Sonics fan holds a sign before the Rain City Showcase in ... More a preseason NBA game between the LA Clippers and the Utah Jazz at Climate Pledge Arena on October 10, 2023 in Seattle, Washington. (Photo by)
As U.S. pro sports have become absolutely ubiquitous across culture due to streaming, 24/7 coverage and the marketing dollars invested in these leagues, you could argue it's hard to find many 'underserved' markets or fans that don't already have allegiances in place.
Even the NFL, for all its overwhelming financial success, hasn't added a truly 'new' market since 1995 (Charlotte, Jacksonville). The last three teams were all retread markets filling a void left by teams that relocated.
For at least one of the teams the NBA will likely add, it seems like an obvious script to follow.
Seattle SuperSonics fans have felt abandoned by the league for 17 years now, and no time more than these past couple weeks as the Oklahoma City Thunder (the one-time Sonics) knock on the door of their first championship in OKC. The Seattle area has the means and desire to support a team, and already proved they could. Plus, the arena's already built, assuming the team would play at ClimatePledge Arena, current home of the Kraken (NHL) and Storm (WNBA).
After that, though? It gets trickier.
There are retread U.S. markets like St. Louis (Hawks), Kansas City (Kings) and San Diego (Clippers), and you could argue all are currently 'under-served' by the NBA to an extent.
Given the NBA's global focus, international expansion to somewhere like Vancouver (former home of the Grizzlies) or Mexico City also has upside. Current U.S. policies might present the most hurdles for both. But both markets could be seen as 'under-served' as well.
Las Vegas is the leader for spot No. 2, but it's also not 'under-served' as an NBA market as it is, which is where Silver's comments could shed light on an atypical city selection.
Just to play devil's advocate on Vegas: The NBA already has a large footprint in the city between annual Summer League showcases and the NBA Cup played there. It's effectively the league's West Coast headquarters without a team, and league functions there feel like an event because they're not in any team's home market.
The once-plucky story of Vegas as a pro sports city is also gone at this point. It's a Golden Knights town that also happens to have the Raiders and soon, the Athletics. The NBA adding team No. 4 to the mix has questionable appeal on its face.
All of this doesn't mean Vegas fails to get an expansion team. It's simply a reason why it may not be as much of a lock as many assume.
No matter which cities the NBA eventually expands to, however, they'll be entering a new dynamic that must demand more of the league's media partners to prop up less-established franchises. The roster-building rules focused on parity are just part of it. To really reap the rewards of that open playing field, and expansion as well, league media has to find ways to market all 30 (32) teams, and not just the same handful of squads.
Whether they're the Lakers or one of those expansion teams, they're all businesses worth well over $5 billion each now. If coverage reflects that, it'll lead to even more growth beyond that in the long-term. And any expansion group should be making those sorts of demands upon admittance.