NBA Sets Sights on European Expansion
The NBA is turning its attention to Europe for further growth opportunities. On Monday, the league announced plans to collaborate with the International Basketball Federation (FIBA) to explore the establishment of a new professional men’s basketball league in Europe. The NBA intends to start engaging with potential teams and ownership groups in January.
Franchise Value Expectations
According to a source familiar with the situation, franchise valuations could reach as high as $1 billion. At the recent League Cup in Las Vegas, NBA Commissioner Adam Silver mentioned that representatives from JPMorgan and the Raine Group have been meeting with prospective investors in Europe, noting significant interest in the initiative.
Investor Engagement and Progress
Reports indicate that bankers have met with over 70 potential investors since discussions commenced about a year and a half ago. Plans are in place to receive non-binding bids next month, with a vote on the new league slated for the board of governors meeting in March.
Potential Ownership Models
NBA Deputy Commissioner Mark Tatum has suggested that the league may consider ownership options involving sovereign wealth funds and is also engaging with current owners of European soccer clubs.
Vision for the New League
The NBA initially announced its intention to explore a new men’s basketball league in Europe last March. Commissioner Silver stated, “Our discussions have solidified our belief in the immense opportunity for creating a new league on the continent.” The NBA aims to partner with clubs and ownership groups that align with its vision for expanding basketball in Europe.
Investment in European Basketball
The NBA plans to invest in European basketball, intending to support local leagues and develop programs through FIBA. The league sees an untapped market in Europe, with an estimated 270 million potential basketball fans. The presence of 71 European-born players in the NBA this season highlights this interest.
Future Plans and Events
The NBA identifies basketball as the fastest-growing sport in Europe, second only to soccer. The league believes that now is an ideal moment for expansion, especially given last season’s success in viewership across digital platforms. If the league proceeds with its plans, it may soon host exhibition games in Europe and possibly have NBA teams competing against European teams in future events.
