PARIS – The NBA’s proposed new European league would distribute hundreds of millions of dollars per year to its franchises, according to George Aivazoglou, the NBA’s managing director for Europe and the Middle East. But the mechanics here are complex, with franchises needing to stump up between “500 million and one billion” dollars to take part, and in return they would become “partners” in the NBA Europe project.
The catch is that almost all top-level European basketball sides are losing money, and the NBA model envisages franchises set up in major cities such as London, Paris, Berlin, and Madrid, where the sporting environment is already saturated. NBA commissioner Adam Silver said they had received “record interest” from potential franchises, whose bids to join the new league are due at the end of the month.
Follow the money, and it becomes clear that the NBA is pitching its proposed new league as a huge money-spinner for potential investors, despite their mammoth initial outlay. Aivazoglou explained that “the partner becomes a shareholder” and that “there is asset value there,” with the NBA’s league in Europe expected to be “an asset that is worth in the tens of billions of dollars.” He also said “this is the NBA’s league in Europe and this will be an asset that is worth in the tens of billions of dollars.
So you’re buying into that, obviously buying into a share of the NBA brand, which as we know will be a significant accelerator of how we create” value. The NBA has been in discussions with the International Basketball Federation (FIBA) and EuroLeague Basketball, which organises the continent’s top basketball competition, as it prepares to launch the new league in 2027.
The NBA’s plans are undoubtedly ambitious, and it remains to be seen whether they will come to fruition. The situation will be crucial to watch as the NBA navigates the complex web of European basketball politics and finances. One thing is certain, however: the NBA’s proposed new league has the potential to be a game-changer for the sport in Europe.
