Reports indicate that Fenway Sports Group (FSG), owners of Liverpool FC, are actively exploring the possibility of acquiring a new franchise in the National Basketball Association (NBA), particularly in Las Vegas. FSG, already holding ownership of Liverpool since 2010 and controlling major sports entities such as the Boston Red Sox in Major League Baseball and the Pittsburgh Penguins in the National Hockey League, has demonstrated a keen interest in expanding their portfolio.
In addition to their existing sports ventures, FSG has delved into other domains, including ownership in the Technology Golf League and a 50% stake in NASCAR’s RTK Racing. The group is described as being in “growth mode,” with longstanding speculation about their involvement in a potential new NBA team in Las Vegas. Basketball superstar LeBron James, a partner in FSG, has expressed a desire to bring an NBA team to Nevada after his playing career concludes.
The NBA is currently hosting its inaugural In-Season Tournament in Las Vegas, and NBA Commissioner Adam Silver has previously acknowledged the possibility of expanding the league from 30 to 32 teams. Las Vegas has emerged as a significant sports hub, with recent additions such as Formula One racing and the relocation of the NFL’s Raiders in 2020.
RedBird Capital Partners, who acquired an 11% stake in FSG for approximately £533 million in April 2021, has played a role in these discussions. Gerry Cardinale, the founder and managing partner of RedBird Capital Partners, stated that FSG has been considering the NBA expansion project for three years and is looking to collaborate with LeBron James in bringing a new team to Vegas.
Acquiring a new NBA franchise typically involves a multi-billion-dollar investment, with the cost shared among existing teams. Recent sales of NBA teams, such as the Phoenix Suns in December 2022 for $4 billion and ongoing talks for the sale of a majority stake in the Dallas Mavericks for $3.5 billion, provide some financial context to the potential venture. Forbes valued the Mavericks at $4.5 billion earlier in the same year.
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