NBA pursues ownership group for European Basketball League

The NBA is eyeing Europe as its next stage of growth.

The league announced Monday that it is partnering with the International Basketball Federation (FIBA) to jointly explore a new men’s professional league in Europe. The NBA said it plans to begin the process of working with potential teams and ownership groups in January.

The franchise could be worth more than $1 billion, said the people, who requested anonymity to discuss details that have not yet been made public.

NBA Commissioner Adam Silver said this last week at the NBA Cup in Las Vegas. JP Morgan The Reign Group said it was actively meeting with European stakeholders and there was a lot of “positive interest” in moving forward.

Bankers have met with at least 70 potential investors, sources told CNBC. Discussions began about a year and a half ago. The goal is to submit a non-binding bid next month and vote in favor of giving the league the go-ahead at the March board meeting, officials said.

NBA Deputy Commissioner Mark Tatum previously said the league was considering the possibility of ownership by a sovereign wealth fund. The NBA is also working with current owners of soccer clubs in Europe.

The league first announced the creation of a men’s basketball league in Europe last March.

“Our conversations with various European stakeholders have reinforced our belief that there are significant opportunities for the creation of new leagues on the continent,” Silver said in a release on Monday. “We look forward to working with FIBA ​​and engaging with future clubs and ownership groups who share our vision of the game’s potential in Europe.”

The NBA also said it would provide financial support and resources to European basketball. According to Monday’s release, the plan is to invest in the development of domestic leagues and across FIBA’s existing programs to build a pipeline of coaches, players and referees.

The NBA estimates there are 270 million potential basketball fans in Europe, calling it an “untapped market.” On opening night this year, the NBA had 71 European-born players. Some of the league’s biggest stars are from Europe, including Victor Wembaneyama, Giannis Antetokounmpo, Nikola Jokic and Luka Doncic.

The NBA said basketball is the fastest growing sport in Europe and second only to soccer. The league said the timing is perfect, as last season was the most-watched season in the NBA across the league’s social and digital channels.

The NBA believes the current European basketball market is undervalued and lacks teams in major cities, according to people familiar with the matter. According to the Wall Street Journal, two-thirds of established EuroLeague teams are losing money.

Officials say the NBA is considering bringing teams to Berlin, Paris, Rome and London. Spain, Türkiye and Greece are also being considered.

If the NBA moves forward with its league system, there is a possibility that it will soon have exhibition teams playing in Europe. Eventually, NBA teams may even play against European teams in Cup-style or All-Star-style events.

FIBA Secretary General Andreas Zagklis said the announcement was great news for European basketball and its fans.

“This project has been conceived in a way to improve the sustainability of the entire European basketball ecosystem, including players, clubs, leagues and national federations, by creating a ripple effect that will greatly benefit basketball fans across Europe,” he said in a statement.

The NBA just concluded the fifth season of its Africa League, which is also affiliated with FIBA. The league says attendance, merchandise sales and social engagement have increased year over year.

Correction: This story has been updated to reflect the team’s potential franchise value.