FSG Reportedly Not Interested In Expansion Team, Limiting LeBron James’ Ownership Options

LeBron James‘ partnership with Fenway Sports Group won’t help him get any closer to becoming an NBA owner, according to Joe Vardon and Mike Vorkunov of The Athletic. Two sources with direct knowledge of the firm tell the authors that FSG currently has no interest in pursuing ownership of an expansion team in Las Vegas.

Cost was cited as the main reason, as the NBA will reportedly seek fees of up to $8 billion per team if the Board of Governors approves exploring expansion opportunities in Las Vegas and Seattle at its meeting next week.

Vardon and Vorkunov note that James first expressed his desire to someday own an NBA franchise in 2016, and he stated four years ago that he would like to be part of the investment in Las Vegas. He has been a business partner with FSG since 2011.

“With Fenway no longer pursuing NBA ownership, it is less likely that LeBron will pursue a team,” a source close to James told the authors.

Forbes cites James’ worth at $1.4 billion, which doesn’t come close to covering the expected expansion fee, and Vardon and Vorkunov state that he always understood that he would have to be part of a team of investors. They also point out that he has connections with wealthy business owners apart from FSG. That includes a 2023 visit to Saudi Arabia as a guest of the Ministry of Sport, which is a partner of the Saudi Public Investment Fund, but the authors explain that the NBA doesn’t permit sovereign wealth funds to own more than 20% of a franchise.

Vardon and Vorkunov also note that James would have to retire as a player before he could pursue an ownership opportunity. He hasn’t stated publicly if he plans to return next season, and with the new franchises targeted to possibly begin playing in 2028, there will be a limited window for James to round up new investment partners and submit a formal bid.

The authors state that James viewed FSG as his path toward ownership. He’s an equity stockholder in the company and became a partner in 2021, giving him partial ownership in the Boston Red Sox, Roush Fenway Racing and the firm’s other properties. His longtime friend Maverick Carter is also an FSG partner, and they were given more equity in 2023.