NBA Europe gains investor interest, but EuroLeague remains unfazed.
EuroLeague CEO Paulius Motiejunas has warned the NBA’s plans for a European league remain largely theoretical, despite investment discussions escalating in the last few weeks.
“We’ve only heard the plan or the fireworks of how amazing it will be, how much potential there is,” Motiejunas said. “But having a theory is one – and making it work is two. We’ve been here for 26 years. We know how Europe functions.”
Motiejuna’s efforts to downplay the concept are hardly surprising given that NBA Europe would encroach on EuroLeague’s turf.
However, his mention of “fireworks” may have some substance, with recent headlines highlighting how the NBA continues to explore a 16-team European league, featuring 12 permanent franchises and four additional spots via qualification.
Cities under consideration include London, Berlin, Paris, Milan, Manchester, Athens, Istanbul, Rome and Munich, with many potentially represented by football giants.
While big names are attracting attention, NBA commissioner Adam Silver has stressed the league will require both investment and patience before it becomes commercially viable.
Speaking to reporters last month, Silver outlined the NBA’s ongoing investor outreach, explaining prospective teams could be valued at between $500m and $1bn, while the NBA itself would retain a 50% stake in the league.
The organisation is also considering alternative ownership models, including sovereign wealth funds, family offices and private equity, noting successful examples such as Paris Saint-Germain.
“We’re casting a very, very wide net right now and essentially saying to anyone who’s interested, come see our bankers,” Silver said in December. “Explain to us why you’re interested, how you view the opportunity, what resources you would put behind opening a team.”
Investors are not limited to traditional sports operators as Silver has suggested NBA Europe could open doors for financial entities that are currently restricted in the US, while also allowing NBA owners to participate collectively without holding individual team stakes.
When theory meets investors
Earlier this week, CityAM revealed RedBird Capital Partners, the owner of Italian football club AC Milan and minority stakeholder in Liverpool FC, is exploring investment in NBA Europe.
RedBird Founder Gerry Cardinale and operating partner Zlatan Ibrahimovic are both actively involved, participating in discussions on the league’s potential.
RedBird’s existing European sports footprint gives the firm a clear strategic interest. The company also holds stakes in the Boston Red Sox and Pittsburgh Penguins, and recently acquired the Telegraph Media Group in a joint venture with Abu Dhabi-based partners.
Despite the growing excitement among prospective investors, challenges remain. The EuroLeague retains deep roots across Europe, with nine of its 13 permanent clubs recently extending 10-year licenses.
