LeBron James Wants To Own An NBA Team In Las Vegas

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Hey Friends,

Last week, LeBron James became the first NBA player in history to reach billionaire status while still active. And now, he already has his sights set on his next challenge.

"I wanna own a team. Yeah, I wanna buy a team. For sure," James said in a preview for his show "The Shop" on Thursday. "... I want the team in Vegas,” he declared.

Now this isn’t the first time that LeBron has hinted about the possibility of NBA ownership after retirement. He has mentioned it on several podcasts in the past, and his business partner Maverick Carter has even said NFL teams might also be in play.

But his path toward NBA ownership is becoming clearer — so let’s run through it.

LeBron James officially joined the three comma club last week as one of the few athlete billionaires in sports history, according to Forbes. He has earned nearly $400 million on the court and more than $900 million off the court through various business ventures and endorsements, including Spring Hill Company, Fenway Sports Group, Blaze Pizza, Beats by Dre, Beachbody, and $80 million in real estate holdings.

But the average NBA team is now worth more than $2.5 billion, and by the time LeBron James retires and new media deals kick in, it will probably be even higher.

So here’s what I think will happen — the NBA will eventually expand from 30 teams to 32 teams, and Seattle and Las Vegas have become the obvious options. They are large TV markets with strong fan bases. They don’t cannibalize existing NBA markets, and they will both have large, NBA-ready arenas within the next few years.

Still, the NBA will reportedly be looking for $2.5 billion-plus in expansion fees. So how will LeBron afford it? It’s not like he has $1 billion of cash in his bank account.

I think this is where his relationship with Fenway Sports Group comes in. If you remember correctly, LeBron James accepted a 2% stake in Liverpool FC—instead of cash—through a business deal with Fenway Sports Group (FSG) in 2011.

That investment reportedly increased in value from $6.5 million to more than $50 million over the following decade. And when FSG received a $750 million investment from RedBird Capital last year, LeBron was named a partner at the firm and converted his Liverpool FC stake into a 1% ownership stake in the FSG parent company.

But there’s also an interesting caveat that most people might not realize. Sure, Fenway Sports Group already owns the Boston Red Sox, Liverpool FC, Fenway Park, Anfield, and several other sports assets. But they raised the $750 million so that they could go and acquire more professional sports teams. And that’s exactly what they did, with FSG acquiring the NHL’s Pittsburgh Penguins for around $900 million last year.

Fenway Sports Group Assets Include:

• Boston Red Sox

• Liverpool F.C.

• Pittsburgh Penguins

• Fenway Park

• Anfield

• Roush Fenway Racing (50% ownership)

• Pawtucket Red Sox (10% ownership)

• Salem Red Sox

• Fenway Sports Management

• New England Sports Network (80% ownership)

• MGM Music Hall at Fenway

• Fenway Sports Group Real Estate

• Fenway Music Company

So if an expansion team is expected to land in Las Vegas within the next few years—most likely right after 37-year-old LeBron James eventually retires—and Fenway Sports Group is actively looking to acquire professional sports teams, I think it probably makes a lot of sense that LeBron would be involved. I mean, it’s a win-win for everyone involved, including LeBron, the NBA, FSG, and even basketball fans.

Of course, this is all speculation at this point. The CBA doesn’t allow active NBA players to hold ownership stakes, and several things need to fall into place for this to happen. Still, don’t be surprised if LeBron James eventually makes his NBA ownership dreams come true, and he teams up with FSG in Las Vegas to make it happen.

I hope everyone has a great weekend. I’ll talk to you on Monday.

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