Seattle’s bid to return to the NBA faces uncertainty as some team owners question whether an expansion franchise in the city would deliver the financial returns they expect.
Seattle has emerged alongside Las Vegas as a leading candidate for expansion. However, concerns among owners could complicate its chances of returning to the league for the first time since 2008.
That year, the SuperSonics moved to Oklahoma City and became the Thunder.
Owners weigh expansion costs and benefits
People familiar with the discussions said some owners doubt Seattle would generate enough financial value to justify its inclusion.
Owners must weigh the expansion fees against the need to share media-rights revenue with more teams. They must also consider the possibility of diluting the available player talent.
One owner said Las Vegas offers stronger financial prospects, while Seattle remains a question mark.
People familiar with the process said the franchise fee for a Las Vegas team could reach $10 billion. That would give each of the NBA’s 30 existing teams about $330 million.
Seattle, by comparison, could attract between $6 billion and $6.5 billion. This would translate to roughly $200 million per existing franchise.
The difference partly reflects the lack of competition for ownership in Seattle. Samantha Holloway has emerged as the leading bidder and discouraged other potential investors.
Holloway strengthens Seattle bid
Holloway owns the NHL’s Seattle Kraken and controls Climate Pledge Arena. The venue is the only facility in the city large enough to accommodate an NBA team.
Her control of the arena creates a major obstacle for rival investors. Any competing group would need to build a new facility, which could cost more than $2 billion.
Such a project could also face political opposition. The SuperSonics previously failed to secure public funding for a new arena before leaving Seattle.
Holloway strengthened her ownership group earlier this year by bringing in Melinda French Gates. The billionaire philanthropist has an estimated net worth of $17 billion, according to the Bloomberg Billionaires Index.
Other investors include Amazon chief executive Andy Jassy and Hollywood producer Jerry Bruckheimer.
Holloway declined to comment. However, a person familiar with her thinking said her group remains committed to bringing an NBA team back to Seattle and has maintained active discussions with the league.
Las Vegas attracts stronger competition
Despite the concerns, the expansion process could still deliver significant financial benefits to existing owners.
Teams had expected expansion to generate at least $500 million in total fees per franchise. Current discussions could help them reach that target.
The NBA began exploring expansion in March and appointed investment bank PJT Partners to oversee the process.
Commissioner Adam Silver has repeatedly said the league is considering different outcomes, including awarding one franchise or none.
Adding only one team would leave the NBA with 31 franchises. The league last operated with an odd number of teams during the 2003-2004 season.
Meanwhile, Las Vegas has attracted three major ownership bidders, increasing competition and potentially driving up its expansion fee.
Some investors who lose out in Las Vegas could join Holloway’s Seattle group as minority partners rather than launch competing bids.
The NBA’s relationship with Seattle has remained strained since the SuperSonics relocated in 2008.
In 2013, former Microsoft chief executive Steve Ballmer attempted to buy the Sacramento Kings and move the franchise to Seattle. However, the NBA rejected the proposal, and Ballmer later purchased the Los Angeles Clippers.
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