NBA Plans New European League With Potential Franchises

NBA owners are poised to consider a groundbreaking plan this week that could reshape the basketball landscape in Europe. As part of ongoing efforts to galvanize the sport's presence across the continent, the NBA is examining the establishment of a new professional basketball league, potentially featuring eight to ten franchises.

The proposed league represents a significant shift in strategy for the NBA, which has already held discussions over the past year regarding how to optimize its business in Europe better. Sources indicate that this would be a "semi-open" league, allowing up to four spots for top EuroLeague teams like Real Madrid and Olympiacos to compete in the new NBA European league after their own seasons.

Several European cities, including London and Paris, are under serious consideration as potential locations for these franchises, each estimated to sell for a staggering $500 million. The franchise ownership model resembles that of the WNBA, where the NBA would retain 50 percent equity while franchise owners purchase the remaining stake. According to a source close to the situation, these franchises would likely be sold to external investors, including wealthy individuals and sovereign wealth funds.

An NBA spokesperson confirmed that the league will present the proposal at this week's Board of Governors meeting in New York, stating, "The league will report on its exploration of a new men's basketball league in Europe, in partnership with FIBA." While a formal vote on the proposal isn't scheduled yet, regulation changes and expansion plans are on the docket for discussion.

This league concept arrives amid a backdrop of escalating interest in basketball across Europe, where participation rates have soared in recent years. The NBA, historically generating hundreds of millions in revenue from Europe annually, believes that tapping deeper into this emerging market could yield as much as $3 billion in annual profits. This belief underscores their continuous efforts to enhance partnerships, such as those with EuroLeague and FIBA, to further develop the sport.

Growth in basketball popularity outside of North America has been a major focus for the NBA, which is still reaping the benefits of its partnerships initiated since the late 1980s, including its lucrative business relationship with China. In 2021, the league launched the Basketball Africa League (BAL), showcasing its ambition for international engagement beyond Western markets. This diversification strategy has led to numerous regular-season and preseason games being played outside the U.S. and Canada over the years. The league has hosted 40 regular-season games internationally, with five of those being held in France recently. These matches are critical in fostering a global basketball community, further drawing international attention to the sport.

In recent seasons, there has been a record influx of foreign-born players in the NBA, highlighting the league's status as a global brand. In the current season, 125 foreign-born players are part of the NBA rosters, with European players making up 62 of that total. The recent trend has seen NBA MVPs awarded to non-American players over the past six years, suggesting a seismic shift that marks a more inclusive approach towards talent across borders.

With new leagues emerging in various sports, the NBA must contend with competition for international recognition. This year, a new women's 3-on-3 league, Unrivaled, made its debut in Florida, featuring some of the most prominent names from the WNBA. Additionally, reports from January indicated that Maverick Carter, a business partner of LeBron James, is working with a team to raise $5 billion for a new international basketball league designed to compete directly with the NBA.

The potential for an NBA European league signifies not only an expansion of the sport's reach but also represents a response to fan engagement, market trends, and player recruitment strategies. This consideration comes at a time when the professional landscape of other sports leagues is increasingly reliant on international markets for growth.

Should the proposal gain traction and ultimately be approved, it would pave the way for unprecedented developments in European basketball. The NBA's reach, coupled with the local expertise of established European teams and franchises, would create an exhilarating platform for both players and fans alike. The ramifications could be irresistible for European basketball culture and the business of the sport.