With the league taking a big step toward placing teams in both Las Vegas and Seattle next week, James’ decade-long dream is fading away.
Fenway Sports Group, James’ business partner since 2011, which owns both the Boston Red Sox and English Premier League soccer giants Liverpool, is not currently interested in pursuing a potential expansion opportunity in Las Vegas, two sources with direct knowledge of the firm’s intentions said. Athletic. One of the sources, who was not authorized to speak publicly for Fenway, said the global sports investment firm was holding off on NBA ownership in Las Vegas because of the expected costs — the league is reportedly seeking an expansion fee of up to $8 billion per team.
FSG had long been expected to be James’ primary financial backer in his stated desire to own an NBA team, and because of this, a source close to James said, “With Fenway no longer pursuing NBA ownership, it is less likely that LeBron will pursue a team.”
An FSG spokesperson declined to comment. athletic.
James, 41, who still plays for the Los Angeles Lakers as a player, has a net worth of $1.4 billion as of Wednesday, according to Forbes. But their individual value is not enough to cover the cost of the expansion fee, and they will always need to join a team of investors to realize their bid.
He has ties to wealthy business owners and conglomerates beyond FSG. For example, LeBron traveled to Saudi Arabia in 2023, where he was the guest of the country’s sports ministry, an associate partner of the Saudi Public Investment Fund. But current NBA rules do not allow sovereign wealth funds to own more than a 20 percent stake in a team.
Additionally, James would need to retire first in order to launch a bid for ownership of the team. He is undecided whether he will play in 2026-27, and with the NBA reportedly eyeing the fall of 2028 as a potential launch for new teams (if the NBA ultimately approves an expansion), the timeline would either be too tight or impossible for James to find new investment partners and submit a bid.
On August 17, 2016, James sat down for an interview on the “Open Run” podcast, which belonged to the digital media platform he owned, Uninterrupted, and told the show host, “My dream is to actually own a team.” Almost a year later, in an interview with athletic, James said, “Why would I want to own a team? I think it would be cool. I would still be a part of the game and still be able to put people in positions of power. I’ve always liked putting people in positions of power and making them feel like they can make a change and make things happen.”
In 2019, he told reporters, “There’s probably nothing about it, I’m going to do that—” and in June 2022, he said on his long-running TV and digital show, “The Shop,” that “I want a team in Vegas. I want a team in Vegas.”
But FSG was always a part of his grand plan for NBA ownership, and it seems like moving forward with his plan may require a change of heart by the firm or a rule change by the league.
The partnership with FSG is one of James’ most prominent investments and relationships in the sport. He is an equity stakeholder in FSG and has a far-reaching relationship with the investment firm. They have worked together since 2011, when Fenway Sports struck a deal with James’ management company LRMR Ventures on a global marketing and sponsorship deal that included a 2 percent ownership stake for James in Liverpool.
James joined FSG as a partner in 2021 and took a 1 percent stake in the firm, giving him a partial ownership stake in the Red Sox and Roush Fenway Racing, as well as other Fenway Sports Group properties. James’s longtime friend and business partner Maverick Carter is also a partner in the firm. The firm said it received more equity in FSG beginning in 2023.
Fenway was founded and operated by Red Sox owner John Henry. The company’s president is Tom Werner, an acclaimed television producer and businessman who had a business relationship with Paul Wachter, James’ financial advisor. RedBird Capital bought a share of FSG in 2021, valuing the company at $7.35 billion. Redbird is one of the controlling shareholders of Paramount, was the architect of the acquisition of WBD and is one of the largest holders of sports media rights. Fenway owns several sports properties in addition to the Red Sox and Liverpool, and owned the Pittsburgh Penguins until selling the NHL club this year at a valuation of about $1.7 billion.
As for the NBA’s process, team governors will vote during a March 25 meeting on whether to give the NBA the green light to formally evaluate Las Vegas and Seattle as potential expansion markets. athletic And other outlets reported Monday.
If, as expected, the proposal passes, Commissioner Adam Silver’s office will solicit formal bids from potential ownership groups, study them, and make a final proposal to the current league owners for approval. The expansion would ultimately need to be approved by a vote of 23 of the league’s 30 team owners.
NBA franchise values have increased significantly over the past half decade. Several years ago, sports financiers and investors estimated that a new NBA franchise could bring in $5 billion, but that was before the Boston Celtics were sold for $6.1 billion and the Los Angeles Lakers were purchased for $10 billion.
<a href=