Red Bull GmbH, known for its energy drinks, is considering expanding into the sports industry by potentially acquiring a new NBA franchise, with Las Vegas as a prime location. This move comes as the company looks to further establish its presence in the world of sports, following successful ventures in Formula One, Major League Soccer, and other sports teams.
The Austrian company, which does not publicly disclose its financial information but reported revenue of $10.9 billion last year, is well-positioned to make a significant investment in acquiring an NBA team. Red Bull has a strong track record of spending on athletic sponsorships, with over $1 billion allocated to such initiatives in 2022. This financial strength could make them a formidable contender in the race to secure an NBA team in Las Vegas.
While Commissioner Adam Silver has previously downplayed talks of NBA expansion, the league could consider adding two new teams in the future, bringing the total number of franchises to 32. This potential expansion has sparked interest among various parties, including NBA legends like LeBron James and Shaquille O’Neal, who have expressed a desire to be part of ownership groups for a Las Vegas team.
In addition to Red Bull, other contenders for owning an NBA team in Las Vegas include real estate developer LVXP and Oak View Group. LVXP aims to redevelop the former Wet’n’Wild site near prominent casino hotels, potentially incorporating a state-of-the-art arena suitable for NBA games. On the other hand, Oak View Group has plans for a massive $10 billion project that includes a casino resort and entertainment district with an NBA-ready arena, without the need for public financing.
As Red Bull explores the possibility of acquiring an NBA team, it will face stiff competition from various stakeholders vying for a piece of the Las Vegas sports market. The city’s reputation as a sports and entertainment hub makes it an attractive location for a new NBA franchise, and the potential economic benefits of such a venture are significant for all parties involved.
In conclusion, Red Bull’s interest in owning an NBA team in Las Vegas underscores the company’s commitment to expanding its sports portfolio and further solidifying its presence in the global sports industry. With the financial resources and strategic partnerships at its disposal, Red Bull could be a formidable player in the competitive landscape of NBA team ownership.