NBA team owners are expected to vote this week on an initiative to launch a professional basketball league in Europe, Sportico’s Scott Soshnick and Eben Novy-Williams reported Tuesday.
The proposed league would be comprised of eight to 10 teams and aims to expand basketball’s presence across Europe and capitalize on the sport’s popularity by being more involved in the economics of its growth overseas. The NBA estimates that the market for basketball in Europe and the Middle East could generate up to $3 billion in annual revenue.
Franchises in cities such as London or Paris could sell for at least $500 million, according to Sportico. The NBA’s league would sell permanent franchise openings to outside investors — such as sovereign wealth funds, private capital, individuals with capital or even current European basketball clubs. Under that arrangement, the NBA would hold 50% of the team’s equity and new owners hold the other 50%. It’s a model similar to that used for the WNBA until that league was able to raise outside capital in 2022.
The NBA’s European league could also operate under a “semi-open” model that would create spaces for top EuroLeague teams — for instance, FC Bayern Munich of Germany or Spain’s Real Madrid — to join the NBA venture during the following year.
This initiative is separate from the international basketball league seeking $5 billion from investors that’s being advised by Maverick Carter, LeBron James’ business partner, that aspires to be “an F1 for basketball” and not a direct competitor to the NBA.
NBA team owners have discussed opportunities in Europe for the past year and the league has launched previous business deals in China and Africa, and played regular season games in London and Paris. Meanwhile, international players including three-time NBA MVP Nikola Jokić, two-time MVP Giannis Antetokounmpo, Luka Dončić and Victor Wembanyama have become huge stars in the league and grown the NBA’s popularity overseas.
The owners are scheduled to vote on the European league proposal this week during league meetings in New York City.
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