Billionaire Magic Johnson's Las Vegas NBA bid faces new rival targeting $13 billion war chest

Magic Johnson's pursuit of an NBA expansion franchise in Las Vegas has run into its most heavily financed rival yet, a group led by Basketball Hall of Famer Jerry Colangelo that says it is targeting as much as $13 billion in capital.

The group, operating under the working name Las Vegas Jacks, went public on July 8 with $8 billion already lined up. Roughly $5 billion of that is committed, with another $3 billion formally indicated. Its stated asset goal runs between $12.5 billion and $13 billion, and it intends to pay the league's expansion fee entirely in cash.

That announcement reset the terms of a contest Johnson entered first. His investment vehicle, MAGI, was the earliest group to declare interest in a Las Vegas team, and it has spent months courting local support. Johnson met in February with Nevada Governor Joe Lombardo and other stakeholders to press the group's case. MAGI also includes sports and entertainment executive Andre Cleveland and Las Vegas businessman Mike Bellon.

Johnson's pitch has leaned on more than basketball. His group has said it wants to build a resort project alongside a new arena, a package that would tie the franchise to the city's hospitality economy rather than lease space in an existing building. A minority-led ownership group would also mark a first for a league whose player base is overwhelmingly Black and whose owners are almost entirely not.

The field has grown crowded. Bill Foley, who owns the NHL's Vegas Golden Knights, is assembling a bid and has said he would put upwards of $400 million into renovating T-Mobile Arena and build a practice facility in Summerlin. Former Disney chief executive Bob Iger is exploring a bid with venture capitalist Joshua Kushner through Thrive Eternal, a vehicle Kushner created, and has hired investment bankers. Marc Lasry, the former co-owner of the Milwaukee Bucks, is also in the mix.

Colangelo's entry carries weight the others cannot easily match. He owned the Phoenix Suns, ran USA Basketball for 16 years and chaired the NBA Board of Governors, giving him relationships across the league office and among the 30 owners who will vote. His group includes former Turner Sports president David Levy, former NBA players Vinny Del Negro and Jay Williams, and finance chairman Scott Colangelo. U.S. Bank, BTIG and Global Leisure Partners are serving as institutional partners.

The Jacks plan to start play at T-Mobile Arena while developing a basketball-focused venue and surrounding entertainment district. Levy has said the group will pay in cash, a structure that sidesteps the league's limits on how much debt bidders can carry.

Johnson's group, by contrast, has gone quiet. A Las Vegas Review-Journal columnist handicapping the field this week wrote that MAGI has shown little movement in recent months and may be losing steam, while ranking Colangelo the front-runner. Johnson has not publicly detailed his financing.

His track record in sports ownership is the strongest argument in his favor. Johnson holds minority stakes in the Los Angeles Dodgers, the Washington Commanders, Major League Soccer's LAFC and the WNBA's Los Angeles Sparks, and he was part of the Guggenheim-led group that bought the Dodgers in 2012 in what was then a record deal for an American sports franchise. He built Magic Johnson Enterprises after retiring from the Lakers and crossed into billionaire territory through those investments rather than through his playing career.

Shaquille O'Neal is circling the same prize without leading a bid. His Las Vegas business manager, Perry Rogers, has confirmed conversations with ownership groups, saying the city is the right fit for an NBA team. O'Neal has spoken for years about wanting to own a franchise and has modeled his business career on Johnson's. He is building a youth sports complex in northeast Las Vegas.

Michael Jordan's name has surfaced in the same conversations. A source told the Review-Journal that ownership groups have mentioned him and that he was interested in joining one, though no direct talks have taken place. LeBron James, who had been linked to a Vegas bid, ruled himself out entirely and is returning for a 24th season.

Adam Silver has said the league is focused on Las Vegas and Seattle and wants an answer by the end of the calendar year. He has also warned that the NBA could decide against expanding at all, citing global instability, and has left open the possibility of adding just one team. Expansion fees could reach $10 billion, with proceeds split among current owners. Any new franchise would be the league's first since 2004.

Johnson moved first in Las Vegas. Whether he can match the money now on the table will determine if he gets to finish.