LeBron James heading $7 Billion bid for Las Vegas expansion team
A bid for the Las Vegas expansion franchise will cost $7 billion.
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Los Angeles Lakers superstar LeBron James heading partners to bid $7 Billion for NBA's next expansion franchise in Las Vegas
The NBA is looking to expand to at least one more team as its fan following grows larger by the day. The most obvious city whose name keeps coming up repeatedly has been Las Vegas. The city has everything going for it to have an NBA franchise. However, the rising valuations and the latest media rights deal may make things difficult. As such, Los Angeles Lakers superstar LeBron James and his partners will have to cough up an unreal amount of money to get everything together.
The figure suggested by Bloomberg is $7 billion. An amount that was unfathomable just a few years back. But with all that has transpired over the past few years, it could cost LeBron James and his partners that much. The figure includes franchise fees, building a new arena, and all the associated infrastructure required for an NBA franchise to operate. The amount is still absurdly high considering that the most expensive sale of any American sports franchise barely topped $6 billion.
The Los Angeles Lakers superstar is backed by the Fenway Sports Group and SpringHill Company. Consequently, he aims to become the first player to go straight from playing basketball to owning a franchise. However, the NBA has done all the work to ensure that they can set the demands. The primary of which was concluding the media rights deal.
The $76 billion media deal is in itself the biggest carrot the league has dangled in front of prospective bidders. That amount alone should take care of operating costs and give a nice profit. Then the rest is all straight income. Suggesting that investors will be able to recover their money soon.
Billionaire LeBron James’ business ventures
The 4-time champion was the first basketball player in history to become a billionaire while still playing. During his 21 years in the NBA, he has earned a little less than $500 million. The rest of the money has come from endorsements and his business ventures. He and his childhood friends Rich Paul and Maverick Carter worked together to establish business ventures from the early days of James’ NBA career.
The two set out to help James invest in multiple ventures. This Las Vegas franchise will not be the first sports franchise on his profile. He already has minority stakes in Liverpool and the Boston Red Sox to name a few. He also has investments in restaurant chains, alcohol brands and fashion brands. Then there is the SpringHill Company which has become an elite production house.
All of these investments have helped LeBron James have a net worth of $1.2 billion. A long way away from the $7 billion needed for a controlling ownership in the Las Vegas franchise. But even then, he could help partners lead the bid.
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Joseph Varghese
(2268 Articles Published)