The NBA is ramping up efforts to launch a new European league by bringing JP Morgan Chase onboard as its financial advisor.
According to reports in mainstream global media, JP Morgan will lead on the financial structure of the European league. It is believed their remit will encompass potential salary caps, hard caps, distribution of TV and media rights and how much it may cost each suitor to invest in a franchise.
The Raine Group have also reportedly been brought in by the NBA to advise on the strategic planning process. Specifics of this partnership have not yet been disclosed.
Multiple reports from the Financial Times and other news outlets suggest the new NBA European league could launch as early as the 2026/27 season, which could feature 14-16 teams.
NBA Commissioner Adam Silver has been holding private meetings with the likes of UK Prime Minister Keir Starmer over the inclusion of a London and Manchester-based team, whilst also holding talks with Paris Saint-Germain owners, Qatari Sports Investment, as well as AC Milan owners Red Bird Capital.
Reports have also suggested FC Barcelona and Real Madrid’s basketball teams will also defect to the NBA league from the EuroLeague. Both Spanish teams’ licenses with the EuroLeague are set to expire in 2026.
Insider Sport has reached out to both teams for comment.
Other names being lined up for a potential NBA Europe franchise could be Olympiakos in Greece and Fenerbahçe in Turkey.
JP Morgan Chief Executive Jamie Dimon will more than likely play an integral role in the advising process for the proposed new league, especially as the NBA is looking to capitalise on a projected $20bn basketball market.
The commercialisation hole in European basketball
Silver has spoken extensively about the large-scale opportunity sitting in front of the NBA when it comes to expanding into Europe.
The sport has seen continued growth in viewership and participation across the last several decades, with many of the NBA’s best players, such as Nikola Jokić, Giannis Antetokounmpo and Luka Dončić reigning from European countries.
But while basketball interest is peaking at all-time highs, Silver and the NBA believe European basketball is severely underdeveloped commercially. The Financial Times revealed the league believes the current setup of European basketball is only making 1% of the projected $20bn media market.
Speaking to a person close to the NBA Europe project, the Financial Times revealed: “There’s never been more momentum around European basketball . . . we have to capitalise on this moment.”
The move to speak with football clubs to potentially launch their own basketball teams is a strategic one from the NBA, as close association with a European football club will already enable the basketball team to become an attractive investment opportunity and hold a high level of valuation from the outset.
The league will be heading to Paris, London, Manchester and Berlin from 2026-2028 for regular season games, four locations which could host an NBA Europe franchise.
Founder of The Ringer, Bill Simmons, also suggested on the Bill Simmons Podcast that the NBA’s European league is the “apple of its eye” right now and believes its plans in the continent have cooled off talks of expanding the league to 32 teams.
Simmons also highlighted how the new $76bn media rights deal will not incentivise league owners to share broadcast revenues with a further two teams, but they could be interested in investing in a European franchise which would see them bring in more broadcast revenue and other commercial opportunities.
While the current EuroLeague brings in moderate revenue each year, backed by a title sponsorship with Turkish Airlines since 2010, the commercial powerhouse that is the NBA will no doubt have investors curious of the possibilities of a European league.
NBA revenues increased by 13% from 2022 to $11.3bn for the 2023/24 season, and while a European league will not generate these figures, the league’s collective bargaining agreement, as well as its favourable revenue distribution rules for teams, could see Manchester City, Barcelona, Real Madrid and more jump at the opportunity to join the NBA European league.
Insider Sport has reached out to the NBA for comment on these expansion reports.
