Reading Into Mark Davis Buying The Las Vegas Aces From MGM

Mark Davis, owner of the Las Vegas Raiders, has consented to purchase the Las Vegas Aces from MGM Resorts International. The specifics of the WNBA team’s acquisition deal have yet to be revealed.

In 2017, the Aces relocated from San Antonio to Las Vegas. They played their inaugural season in Las Vegas in 2018. The Mandalay Bay Events Center, owned by MGM Resorts, serves as the home ground for the Aces.

The venue within Mandalay Bay is situated opposite the I-15 freeway from Allegiant Stadium, which hosts home games for the Raiders. Davis stated in a press release:

I am thrilled to share that I have agreed to buy the Las Vegas franchise in the WNBA from MGM Resorts International.

Once I obtain official approval from the WNBA Board of Governors and get an opportunity to talk with the team’s players, coaches, and administrators, I will have more to say.

The sale of the Las Vegas Aces to Davis is yet to be finalized. It requires the approval of both the WNBA and the league’s board of governors. The process is expected to take a few weeks before the deal is officially sealed.

Davis is a big supporter of the Aces

Davis is a dedicated fan of the Aces and holds a season ticket. Before the 2020 WNBA season took place at IMG Academy, Davis was a regular courtside presence at Aces’ home games. In 2019, Davis’ Raiders bought close to 2,000 Aces game tickets which were then given out to local kids.

Undoubtedly, Davis is a fan and ranks among the most renowned supporters of the Las Vegas Aces. Could his support for the team and involvement in this deal herald the dawn of a new professional basketball era in Las Vegas? It’s entirely conceivable.

Could an NBA team be next for Davis and Las Vegas?

The acquisition of the Aces by Davis could be Las Vegas’ initial move towards securing an NBA expansion team.

NBA Commissioner Adam Silver stated earlier this year that the league is considering expansion to recover funds lost due to the coronavirus pandemic.

The league is undoubtedly in search of one team, with the possibility of adding a second. It is projected that the owners of existing NBA teams would collectively receive about $2.5 billion for each additional team.

Seattle leads the ranking of prospective cities, closely followed by Las Vegas, which seems to be ahead of other cities. Although Kansas City is interested in having a team, it appears there is no billionaire ready to own one. Davis may not be a billionaire, but he is certainly not short on funds.

Las Vegas is prepared to accommodate an NBA team. The T-Mobile Arena, a cutting-edge facility, can be effortlessly adapted for basketball matches. Since its inauguration, the venue has been hosting college basketball games.

A billionaire residing in Las Vegas, who is set to acquire a WNBA team, may add an NBA expansion team to his portfolio, that already includes the Raiders and Aces, further expanding his sports roots in the city. This individual is none other than Davis.

Coupling NBA and WNBA teams

Almost 50% of WNBA teams have the same owner as an NBA team.

The NBA originally owned the teams and the league as a whole when the WNBA was established in 1996 and started playing its first games in 1997. However, the ownership structure changed in 2002 when the league began to sell teams to individual owners.

The WNBA and the NBA aren’t completely separate entities. Five out of the 12 WNBA teams have the same ownership groups as NBA teams:

• New York Liberty and Brooklyn Nets
• Indiana Pacers and Fever
• Minnesota Timberwolves and Lynx
• Phoenix Suns and Mercury
• Washington Wizards and Mystics

Should the expected approval of Davis’s purchase of the Aces go through, he might consider acquiring an NBA team as well. This would result in half of the WNBA teams having a shared ownership group with an NBA team within the same market.

MGM selling the Aces could be the first step to Las Vegas expansion team

The sale of the Aces by MGM Resorts could be the initial move towards Las Vegas receiving an expansion team from the NBA.

The spread of the coronavirus is posing challenges for the international casino operator in managing its primary gaming and hospitality businesses. To enhance its online gaming business, MGM is considering acquiring Entain.

This agreement has the potential to enhance MGM’s online casino and sports betting enterprises. Strengthening the online aspect of its operations could enable MGM to boost its revenue. Additionally, this could serve as a safeguard against potential future crashes if physical casinos are required to shut down or reduce capacity.

Online gaming complements MGM’s retail casino operations, unlike the Las Vegas Aces. Given that the WNBA team isn’t as crucial to MGM’s operations, it’s understandable why the company would choose to sell this asset.

A local businessman, potentially capable of managing the team and securing an NBA expansion team, might have bought the Aces from MGM. The casino operator would probably not be interested in owning an NBA team, even if given the opportunity.

The Nevada Gaming Commission has a regulation that prevents casino operators from accepting bets on sports teams they own. As an illustration, Golden Nugget is not allowed to accept bets on the Houston Rockets because both are owned by Tilman Fertitta.

BetMGM operates in multiple legal sports betting markets beyond Nevada. However, if MGM Resorts owned a team, it may be restricted from accepting bets on a potential Las Vegas NBA expansion team or even the entire league, depending on the state’s regulations.

Sports betting is integral to the future of MGM Resorts. It wouldn’t be wise to own an NBA team. However, selling the Las Vegas Aces could potentially herald the start of NBA basketball’s future in Las Vegas.