The NBA is seeking to explore Europe as its next frontier of growth. At the beginning of this week, on Monday, the league declared that it will proceed to conduct a collective examination of a new professional men’s league in Europe alongside the International Basketball Federation, or FIBA.
However, the NBA announced that it will begin the procedure of trying to deal with potential teams and ownership groups in January. People familiar with the matter reported that the franchise values might be greater than a $1 billion.
NBA Commissioner Adam Silver stated at the NBA Cup last week in Las Vegas that JPMorgan and the Raine Group have been busy holding meetings with interested parties in Europe and that they have received much “positive interest” in going ahead.
Sources informed CNBC that the bankers have already met with at least 70 potential investors. There were negotiations started one and a half years ago. The sources stated that the idea is to move nonbinding bids in January and to vote on green-lighting the league at the board of governors meeting in March.
NBA Deputy Commissioner Mark Tatum has reportedly stated in the past that the league is considering having the sovereign wealth funds as prospective owners. The NBA is pursuing current European soccer club owners. Therefore, the league first declared the exploration of a men’s basketball league in Europe last March.
In a release on Monday, Silver said, “Our conversations with various stakeholders in Europe have reinforced our belief that an enormous opportunity exists around the creation of a new league on the continent. Together with FIBA, we look forward to engaging prospective clubs and ownership groups that share our vision for the game’s potential in Europe.”
However, the NBA also indicated that it will support and resource European basketball financially. According to Monday’s release, it intends to invest in domestic leagues and growth in the existing programs under FIBA in order to develop a pipeline of coaches, players, and referees.
The NBA approximates that 270 million potential basketball fans are in Europe, and it is an “untapped market.” During an opening this year, the NBA comprised 71 European-born players. Europeans have produced some of the biggest stars in the league, including Victor Wembanyama, Giannis Antetokounmpo, Nikola Jokić, and Luka Dončić.
The NBA reported that basketball is the most rapidly expanding game in Europe and the second-most popular game after soccer. The league claimed it comes at the right time because last season was the most-watched NBA season on the social and digital platforms of the league.
People familiar with the matter stated that the NBA believes the present European basketball market is undervalued and lacks teams in marquee cities. The Wall Street Journal reports that two-thirds of teams in the already existing EuroLeague make a loss.
According to the source, the NBA would be seeking to take teams to Berlin, Paris, Rome, and London; it has an eye on Spain, Turkey, and Greece.
With the NBA proceeding with the league, it might start with taking the exhibition teams to play in Europe in the near future. Here might even come a time when the NBA teams will have to play the European teams in a cup-style or all-star type event.
Meanwhile, the FIBA Secretary General Andreas Zagklis described the announcement as great news to European basketball and fans.
In a statement, he added, “The project is conceived in a way that will improve the sustainability of the entire European basketball ecosystem, including players, clubs, leagues, and national federations, by generating a knock-on effect that will strongly benefit basketball fans throughout Europe.”
Recently, the NBA has finished the fifth season of its African League, which was also in collaboration with FIBA. The league indicated that it has expanded annually in terms of attendance, merchandise sales, and social interaction.
