The Los Angeles Lakers’ record-shattering sale may have revealed just how expensive the NBA’s long-awaited arrival in Las Vegas will be.

Former Disney CEO Bob Iger and Thrive Capital founder Joshua Kushner agreed to purchase the Lakers from Mark Walter at a $12.5 billion valuation on Wednesday, less than a year after Walter acquired control of the franchise at a $10 billion valuation.

The price established a new benchmark for sports franchises, but the identity of the buyers may be just as consequential for the NBA. Iger and Kushner had previously explored pursuing a Las Vegas expansion team before pivoting toward the Lakers.

According to ESPN’s Ramona Shelburne, the shift suggests an expansion fee once projected between $6 billion and $8 billion may now climb toward $10 billion. A prospective Las Vegas owner could then need approximately another $2.5 billion to construct an arena.

That math reportedly helped lead Iger and Kushner back to Los Angeles. Why spend a combined $12.5 billion on an expansion fee and new building when the same money could purchase one of the world’s most established sports brands?

The Lakers offered infrastructure, sponsorships, a global fan base and an existing arena arrangement. A Las Vegas expansion team would begin without a roster, history or permanent home — and possibly at a similar total cost.

Associated Press sportswriter Greg Beacham argued that the Lakers’ sale makes an expansion fee north of $8 billion increasingly likely despite Las Vegas ranking only 29th among U.S. metropolitan areas and 40th among television markets.

The city is also becoming increasingly crowded with professional sports. Its long-term population growth is projected to slow, while its tourism business has suffered a sharp downturn.

Those concerns have not dampened the NBA’s attraction to Las Vegas. The city already hosts NBA Summer League and the NBA Cup semifinals and final, while the Golden Knights, Raiders and Aces have demonstrated its ability to support major franchises.

Despite the downturn, tourism and corporate entertainment also give Las Vegas revenue opportunities that cannot be measured strictly through its local television market.

Still, the Lakers’ sale gives the NBA a powerful negotiating point. If a buyer was willing to pay $12.5 billion for Los Angeles, the league can argue that entry into an exclusive 30-team club should command significantly more than earlier projections.

The deal also removes one well-funded group from the bidding without leaving the field empty. Walmart heiress Nancy Walton Laurie and her husband, Bill Laurie, have been linked to a bid.

Golden Knights owner Bill Foley is assembling another group, while the Las Vegas Jacks consortium is backed by former Phoenix Suns owner Jerry Colangelo.

Commissioner Adam Silver has said the league hopes to decide whether to expand to Las Vegas and Seattle by the end of the year. If approved, the new teams could begin playing as early as the 2028-29 season.

The Lakers’ sale does not guarantee that Las Vegas will command a $10 billion expansion fee. Los Angeles possesses a history, market and international reach that a new franchise cannot immediately duplicate.

It does, however, change the financial conversation. Las Vegas did not lose its chance at an NBA team Wednesday, but it lost one potential ownership group — and everyone still at the table may now have to pay considerably more for the league’s most expensive startup.