It’s no secret that billionaire LeBron James wants to add an NBA team to his portfolio. Recently, even the league had a plan in motion with a vote on future expansion either in Las Vegas or Seattle. Yet the plans for King James have faced a setback because of his long-term partners.

According to a report by The Athletic’s Joe Vardon and Mike Vorkunov, James’s business partner Fenway Sports Group (FSG) is not currently interested in pursuing the likely NBA expansion opportunity in Vegas. The report further hinted that the reluctance is due to the expected cost, which could be in the range of $7 billion to $10 billion.

A source close to James told The Athletic, “With Fenway no longer pursuing NBA ownership, it is less likely that LeBron will pursue a team.” For now, it seems that plans to buy the team are on the back burner, which was not the case before.

A few days ago, NBA insider Evan Sidery reported the possibility of LeBron jumping into a minority stakeholder in the Las Vegas team if the expansion gets approved for the 2028-29 season. This follows what James has been constantly talking about: owning an NBA team. He has also been lobbying for an NBA team from Las Vegas for close to a decade, and is interested in using his influence to reportedly become a minority stakeholder in the new team.

With already investments in different sports entities, starting from Liverpool FC, Boston Red Sox, and Pittsburgh Penguins, to NASCAR with RFK Racing, it seemed no brainer for LeBron James to be a part of an NBA team. Most of his investments have happened via Fenway Sports Group, which, according to CNBC’s 2025 ranking, had a value increase to approximately $14.19 billion.

Despite the increase, FSG doesn’t see the value proposition of owning an NBA team, as per reports. Now this clears the path for a 5x NBA champion as LeBron takes a back seat.

LeBron James’ potential exit could benefit another Lakers legend

The NBA’s Collective Bargaining Agreement prohibits active players from holding direct or indirect ownership stakes in league franchises. By the time the Vegas expansion bid is approved, King James would have retired. The match seemed perfect, with his statement also indicating the same. “It’s the best fanbase in the world, and I would love to bring a team here at some point. That’ll be amazing. I want a team here, Adam. Thank you.”

LeBron has made it clear time and again that he wants to own an NBA franchise in Sin City. For now, there remained one clear rival in Magic Johnson. “Forever it’s been the LeBron vs Michael Jordan debate during LeBron’s career, now it could be the LeBron vs Magic Johnson debate for a sports franchise in Vegas,” Chris Canty stated on ESPN’s Unsportsmanlike show.

While the current reports indicate LeBron James and FSG are reportedly backing out, meanwhile, Magic Johnson had a private meeting with the Governor of Nevada, Joe Lombardo, and other civic leaders from Southern Nevada.

According to the Las Vegas Review-Journal, the meeting included an agenda to discuss the formal pursuit of a Las Vegas NBA expansion team and potential arena/hotel project on the Strip. The Lakers legend has built a billion-dollar empire through investing in sports across various leagues. With LeBron and FSG out, this gives Magic Johnson an edge.