Expansion on track as NBA valuations hit new heights

The NBA is entering a pivotal moment following consecutive franchise sales at unprecedented levels – the Celtics entered the record books at $6.1 billion, and the Lakers at a jaw-dropping $10 billion.

These deals have catalyzed serious discussions around expansion values.

The Celtics’ sale stunned analysts by inflating the benchmark far beyond the $4 billion record set when Mat Ishbia bought the Suns.

This valuation was unexpected, especially because the team does not own its arena.

The Lakers’ deal blew that figure out of the water, rising 65 percent higher. It’s expected to be approved during next month’s Board of Governors meeting in Las Vegas, adding a formal seal to what’s already been a dramatic shift.

Commissioner Adam Silver confirmed that while many cities are interested, the league has held off formal discussions to ensure fairness:

“There’s been no lack of interest,” Silver said. “I don’t want to have meetings with some and not others. So if we were to say yes, we’re now going to move into a more formal exploratory phase.”

With these recent transactions, expansion fees are now estimated at around $6 billion each. That means current owners could receive roughly $400 million apiece if two teams are added.

Notably, unlike typical league revenue, these expansion fees are not shared with players, making them even more attractive financially.

Cities like Seattle and Las Vegas are frequently mentioned as top contenders for new franchises. As league plans take shape, NBA expansion could very well transform from speculation to reality.