Who Are the Key Figures Behind the Rumored Bid?

At the center of the reports are two of the most influential names in entertainment and finance:

• Bob Iger, former CEO of Disney and current chairman of the board, has long expressed interest in sports ownership. His experience in media and global branding aligns with the NBA’s push to expand its international footprint.
• Joshua Kushner, co-CEO of Kushner Companies and brother of former White House advisor Jared Kushner, has deep ties to real estate and investment. His involvement suggests a focus on high-value markets, potentially including Las Vegas, Seattle, or a revival of past expansion candidates like London or Montreal.

Sources close to the discussions, speaking to Reuters and Bloomberg, emphasize that talks remain in the “exploratory” phase. No formal proposal has been submitted to the NBA, and league officials have not confirmed any negotiations.

Why Now? The NBA’s Expansion Timeline and Market Demand

The NBA has signaled its intention to expand for years, with commissioner Adam Silver publicly stating in 2023 that the league could add a 31st team by 2025. Key factors driving this push include:

• Revenue growth: The NBA generated $10.6 billion in 2023, up 12% from 2022, with international markets contributing nearly 20% of total revenue (NBA Business Report). Expansion would unlock additional media rights and sponsorship deals.
• Global expansion: The league has prioritized markets like London (where the Raptors played select games) and Saudi Arabia (hosting the 2023 FIBA World Cup). A new franchise could serve as a flagship for these regions.
• U.S. market saturation: While cities like Las Vegas and Seattle remain viable, the NBA has also explored reviving past expansion candidates like Montreal or even a return to markets like Sacramento, where the Kings have struggled with attendance.

Context: The last NBA expansion team, the Charlotte Hornets (1988), joined the league when it had just 23 teams. Today, with 30 teams, the NBA’s decision to expand reflects its confidence in sustaining growth without diluting existing franchises.

Potential Cities in Play—and Why They Matter

While no city has been officially named, reports from ESPN and Sports Illustrated highlight several frontrunners:

Reader Note: The NBA’s last international expansion attempt—selling the Raptors to a Toronto-based group in 1995—proved successful, but the league has since scaled back on non-U.S. teams. A London franchise would require a long-term commitment to games in Europe.

Financial Realities: How Much Would an Expansion Franchise Cost?

The NBA does not disclose exact expansion fees, but industry estimates suggest a new franchise would cost between $1.5 billion and $2.5 billion, based on recent valuations:

• The Golden State Warriors sold for $3.4 billion in 2021, but they were an established brand. A new team would likely fetch less.
• The Charlotte Hornets were valued at $1.35 billion in 2023 (Forbes), but their market is smaller than Las Vegas or Seattle.
• Kushner and Iger’s combined net worth exceeds $20 billion, but their focus would likely be on securing a high-value market rather than maximizing profit.

Expansion fees are typically split between the new owner and the NBA, with the league taking a portion to fund growth initiatives. For example, the Hornets paid $120 million in expansion fees in 1988, while the Charlotte Bobcats (now Hornets) paid $300 million in 2002.

What’s Next? The Timeline for a Decision

If Iger and Kushner proceed, here’s the likely timeline:

1. Exploratory Phase (Now–Q3 2024): The duo would identify a target city and conduct feasibility studies, including fan surveys, arena plans, and revenue projections.
2. Formal Proposal (Q4 2024): A detailed bid would be submitted to the NBA Board of Governors, including financial guarantees, market analysis, and a business plan.
3. League Approval (2025): The NBA’s 30-team owners would vote on the expansion. If approved, the new team could begin operations by the 2025-26 season.
4. Arena Construction (2025–2026): Building a new arena in a major market could take 2–3 years, delaying the team’s debut.

Key Deadline: The NBA’s next owners’ meetings are scheduled for October 2024 and March 2025, when expansion discussions would likely accelerate.

How Would This Affect the NBA’s Future?

A new franchise—especially one backed by Iger and Kushner—would have significant implications:

• Global Growth: An international team (London or Montreal) would solidify the NBA’s position as a truly global league, competing with the NFL and Premier League for global fanbase.
• Revenue Sharing: Expansion fees and increased media rights would benefit existing teams, though smaller markets (e.g., Sacramento, Memphis) might push for protections.
• Schedule Impact: A 31st team would mean 82 more regular-season games per team, increasing travel costs. The NBA would likely adjust the schedule to include more back-to-backs.
• Cultural Shift: Iger’s media expertise could accelerate the NBA’s push into streaming and international broadcasting, while Kushner’s real estate background could influence arena deals.

Comparison: The NFL expanded to 32 teams in 2002, adding the Houston Texans. While the Texans struggled initially, the league’s overall revenue grew by 40% in five years (NFL Business Report). The NBA’s approach would likely be more cautious, given its smaller roster of teams.

What Happens If the Bid Fails—or Succeeds?

Two scenarios are possible:

1. Success: If approved, the new team would join the NBA as early as 2026, with Iger and Kushner leveraging Disney’s global reach to market the league internationally. The team’s logo, branding, and even player development could reflect a media-first approach.
2. Failure: Without a formal bid, the NBA’s expansion timeline could stall, delaying growth until 2027 or later. Rival bids from other investors (e.g., Jeffrey Epstein’s former associates or tech billionaires) could emerge.

Wildcard: If the bid targets an international market, the NBA would need to address concerns from U.S.-based teams about diluted attention. The league has historically prioritized domestic expansion over global teams.