LEBRON James has been seriously stepping up his bid to land an NBA franchise in Las Vegas.
The basketball legend, 39, has made no secret of his desire to become part of an ownership group once his glittering career comes to an end.
LeBron James wants to become an NBA team owner in retirementCredit: Getty
James could potentially own a team in Las VegasCredit: Getty
He is desperate to plunge some of his $1 billion fortune into a new team in Sin City and The U.S. Sun has been told he has really been putting his foot on the gas in recent weeks.
Key meetings were held during Super Bowl week and during the NBA All-Star break in Indianapolis, with two sources confirming numerous sponsors are in discussions about a project that could start off at around $3.5 billion but is expected to reach a value over $10 billion once all the pieces fall into place.
Discussions over a new arena in Vegas – which could cost $1.8 billion – are also underway.
James’ timing is key – the NBA’s current TV deal expires in 2025, and with Apple, Amazon, TNT and ESPN all circling, a bigger share of the financial pie could be available to all franchise owners.
Commissioner Adam Silver is set to confirm two new franchises in 2025, taking the number of NBA of teams from 30 to 32.
LeBron’s long-standing relationship with Nike is also seen as a huge draw for potential investors and “tons” of sponsors.
“LeBron helps Nike make around 600 million dollars per year in sales, and it’s evaluated that with him owning the Las Vegas franchise, it could grow by 10 to 15% in sale for Nike, that is huge!”, enthused the source who now works as an external consultant but was involved in expansion deals in Toronto, New Orleans and Vancouver.
“He can really change the business model in there by example having his logo on the jerseys, or even having part of the merchandising with his name on, which it’s on their plan. LeBron is looking for serious investors.”
Vegas has successfully welcomed NHL, NFL, and even F1 in recent years, with Major League Soccer also eyeing up options in the desert.The appetite for an NBA team is “huge” according to the insider, who claims the pressure will be less than playing in Los Angeles for the Clippers or Lakers.
“LeBron will be able to attract very good players,” another source, who specializes in NBA business development, said. “It’s a win-win situation for everyone.”
Tapping into the constant tourist market also puts Vegas in a favorable position, with no fears of being unable to fill a potential arena holding 23,000.
But it’s the interest of potential sponsors – and the money that could be made – which is helping accelerate the plans.
“We speak about hundreds and hundreds of investors and companies, that is insane! They all know that working with LeBron, the investors and sponsors know that the profits will be massive quickly and that everything has to be done in Las Vegas, with the unique location and context of the city. ”
Legends like Michael Jordan and Magic Johnson are both billionaires, yet LeBron is the first active NBA player to join that exclusive club.
His stellar playing career which has taken in memorable spells at the Cleveland Cavaliers, Miami Heat, and now the Lakers, has seen him rake in a whopping $480 million, while some smart business moves – endorsements and other ventures – have seen another $900 million flood in.
“It might be a big investment to start with, but the profits at the short and mid-term are going to be massive, as it’s evaluated by many studies and business plans to be around more than 300 million per year,” explained the insider.
“As an example, the Knicks and the businesses of the franchise and around Madison Square Garden make a cumulated of around $17 million a night on game day/night. By evaluation, it could be two to three times more for the Las Vegas franchise per game, which is massive!
“The effects of LeBron owning a franchise would be unique in the sports industry in America.”
LeBron has already dipped his toe into sports ownership – he has recently increased his stake in the Fenway Sports Group, who own the Boston Red Sox, Pittsburgh Penguins, and English soccer team Liverpool.
James is a billionaire and has expressed a desire to become an ownerCredit: Getty
