Energy drink conglomerate Red Bull is reportedly competing for ownership of an NBA team.
What Happened: The Austrian company is willing to spend $4 billion to bring a franchise to Las Vegas, Bloomberg reported, citing unnamed sources.
Red Bull already owns two Formula 1 teams and Major League Soccer’s New York Red Bulls, among other sports-related investments.
It is unclear how Red Bull would finance a deal. Company revenue from its energy drink products is believed to have eclipsed 10 billion euros ($10.9 billion) for the first time in 2023.
Why it Matters: In addition to Las Vegas, Seattle is reportedly attracting expansion franchise attention following the expiration of the NBA’s media rights deal.
Las Vegas is currently home to the NHL’s Golden Knights and the NFL’s Raiders. The MLB’s Oakland Athletics are planning to move to Las Vegas by 2028.
The city could go from having zero to four major sports teams within a decade, given that the NBA goes through with expansion in Sin City.
Reports surrounding NBA expansion come amid the rapid increase in the valuations of professional sports teams. Private equity firms including Ares Management Corp ARES, Blackstone Inc BX and Carlyle Group Inc CG have eyed sports team investments, according to Business Insider.
It is also unclear where a Las Vegas team would play. T-Mobile Arena, owned in part by MGM Resorts International MGM is located near the Las Vegas Strip and could serve as a possible venue. The arena, home of the Golden Knights, served as the site for the championship of the league’s in-season tournament.
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