NBA tips off European adventure
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Illustration: Aïda Amer/Axios
The National Basketball Association last week received initial bids for teams in its upcoming European league, with final decisions expected sometime this summer.
- Between now and then, there is a lot to be worked out.
What we know: NBA Europe is expected to include between 14 and 16 teams in a dozen European cities, with play to begin in October 2027 at the earliest.
What we hear: Sources tell me that NBA Europe club owners and the NBA itself would split economics in the league — with each holding a 45% stake.
- Another 5% would go to FIBA, the international governing body for basketball, with the remaining 5% held a dry powder for future partners.
- Last week's bids were nonbinding — really they were replies to an RFP — and were all over the map in terms of value.
- Suitors included owners of existing EuroLeague basketball clubs and European soccer clubs. Majority owners of current NBA teams were excluded.
What we've read: There were multiple non-binding bids in excess of $500 million, and even some at $1 billion.
What's undecided: How NBA Europe will interact with the EuroLeague, which NBA bigs in New York had just assumed would shrivel up and die in the face of its new competition.
- Some EuroLeague owners may just seek to move their teams into NBA Europe, and seem to be bidding for that purpose.
- But the broader EuroLeague has signaled resistance, and its continuation could depress valuations for new NBA Europe clubs competing in the same cities. Particularly given that most EuroLeague teams already lose money.
What's unknown: Viability of the NBA's ultimate goal.
- In the short-term, NBA Europe would be a feeder league — although the NBA's developmental G League also would continue to serve a similar purpose.
- A longer-term hope is that air travel advances (e.g., supersonic jets) could make it possible for European clubs to become part of the main league. The delta between low bids and high bids may be faith in that future.
The bottom line: NBA Europe clubs will cost much less than the $6 billion asking price for expansion franchises in Seattle and Las Vegas. The discount's depth, however, remains an open question.
