Brian Windhorst reported that NBA owners are already budgeting for a $500-600 million expansion windfall each, with two new franchises potentially generating $15-18 billion in total and multiple Las Vegas bids already exceeding $8 billion.
ESPN insider Brian Windhorst has shared new financial details surrounding potential NBA expansion.
"I talked to an owner recently who told me that they are budgeting getting between $500 and $600 million in expansion fees," Windhorst said on The Hoop Collective podcast. "Which means they believe that the two teams will generate between $15 and $18 billion in sale."
"He was talking about their team spending and their cap position, and he's like, 'Well, we've got this $500 or $600 million windfall coming on the expansion,'" Windhorst added. "Obviously, they don't have the money yet. It sure sounds like he's expecting to get it."
Under NBA rules, expansion fees are distributed directly among existing franchise owners and are not classified as Basketball-Related Income (BRI), meaning they do not have to be shared with the players.
Meanwhile, projections for a potential Las Vegas franchise may be even higher than previously expected.
"From what I understand, the bids for the Las Vegas team were all over $8 billion," Windhorst said. "They got multiple bids over $8 billion. And so that means it's gonna go higher than that."
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NBA has not formally approved expansion yet
Despite the significant interest, Windhorst noted that the NBA has still not officially committed to expansion.
"They have not actually said they're gonna expand," he explained. "They haven't actually said we're for sure going to expand, and they haven't said we're for sure going to expand to Vegas and Seattle, and they haven't said whether they're going to expand to Vegas and Seattle at the same time."
"The NBA played with 29 teams for years," Windhorst added. "They could play with 31 teams. And I'm not saying that's what's going to happen. I am just saying to you that they have to go through a process."
Windhorst also identified Nancy Walton Laurie and her husband as leading one of the ownership groups bidding for a Las Vegas team, saying that "most people believe" their group is currently the favorite.
In addition, Melinda Gates has joined one of the ownership groups pursuing a potential Seattle franchise.
Seattle has sought a return of NBA basketball ever since the SuperSonics relocated to become the Oklahoma City Thunder in 2008.
"The Waltons are bidding on expansion," Windhorst said. "And there's money in Seattle as well."
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