NBA pursues ownership groups for Europe basketball league

The NBA is looking to Europe for the next phase of growth.

The league announced Monday that it will continue joint research for a new professional men’s league in Europe in partnership with the International Basketball Federation, also called FIBA. The NBA said it plans to begin the process of engaging with potential teams and ownership groups in January.

The franchises could be valued at more than $1 million, according to a person familiar with the matter who requested anonymity to discuss details that have not yet been made public.

NBA Commissioner Adam Silver said at the League Cup held in Las Vegas last week: JPMorgan and Raine Group are actively talking with interested parties in Europe and there is a lot of “positive interest” moving forward, he said.

Sources told CNBC that bankers have met with at least 70 potential investors. Discussions began about a year and a half ago. The goal is to receive non-binding bids next month and vote on giving the league the green light at a board meeting in March, sources said.

NBA Deputy Commissioner Mark Tatum He has previously said the league is considering potential ownership by sovereign wealth funds. The NBA is also interested in existing European football club owners.

The league first announced that it had made a discovery. men’s basketball league In Europe last March.

“Our discussions with various stakeholders in Europe have reinforced our belief that a tremendous opportunity exists to create a new league on the continent,” Silver said in a statement on Monday. he said. “Together with FIBA, we look forward to collaborating with potential clubs and ownership groups who share our vision of the game’s potential in Europe.”

The NBA also announced that it will provide financial support and resources to European basketball. The company plans to invest in local leagues and build on FIBA’s existing programs to create a pipeline of coaches, players and referees, according to a statement Monday.

The NBA estimates there are an estimated 270 million potential basketball fans in Europe, calling it an “untapped market.” There were 71 European-born players in the NBA on opening night this year. Some of the league’s biggest stars – Shai Gilgeous-Alexander, Victor Wembanyama, Giannis Antetokounmpo, Nikola Jokić and Luka Dončić – all hail from Europe.

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

The NBA believes the current European basketball market is undervalued and lacks teams in major cities, according to a source familiar with the matter. Two-thirds of teams in the current EuroLeague are losing money Wall StreetJournal.

According to the source, the NBA wants to bring teams to Berlin, Paris, Rome and London. It also considers Spain, Türkiye and Greece.

If the NBA makes progress in the league, it could start bringing in flashy teams to play in Europe in the near future. Eventually, there may even be NBA teams competing against European teams in a Cup-style or All-Star type event.

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

“The project is designed to increase the sustainability of the entire European basketball ecosystem, including players, clubs, leagues and national federations, creating a knock-on effect that will strongly benefit basketball fans across Europe,” he said in a statement.

The NBA completed the fifth season of the African League, again in partnership with FIBA. The league said it has grown every year in terms of attendance, merchandise sales and social involvement.