The NBA is in Europe pitching investors on its planned new league that could launch as soon as next year with franchises valued at up to $1 billion, but Europe’s top tier of basketball remains wary of the potential competitor.
EuroLeague sent the NBA a letter on Jan. 9 warning of potential legal action if the league continues to hold discussions with teams that are under long-term contracts to play in EuroLeague, a source familiar with the matter confirmed to Front Office Sports. News of the letter was first reported by Eurohoops.
Over the summer, NBA commissioner Adam Silver and other NBA officials reportedly met with leaders from Real Madrid to discuss the possibility of it joining the planned new league, according to The Athletic. In addition to Real Madrid, the NBA has had its eye on Barca Barcelona, ASVEL Basket of Villeurbanne, and Fenerbahçe Istanbul, The Athletic reported.
A source familiar with the NBA’s thinking tells FOS the league has not had any improper talks, saying it has “engaged with all parties in a lawful and appropriate manner,” and has “not engaged with anyone about any opportunity that they are not free to discuss.”
How We Got Here
The NBA’s European pursuit became formalized last March, when it and the International Basketball Federation (FIBA) announced they would jointly explore a new pro men’s league in the region. The idea picked up steam throughout the year—Silver said at the FOS Tuned In summit in September that the league could launch within a couple of years, although he cautioned there are European arena infrastructure and regulatory hurdles. More recently, he said conversations with potential investors could get more serious “sometime in late January.”
Silver is part of a league contingent currently in Europe to attend regular-season NBA games taking place in London and Berlin. As part of the trip, Silver is also pitching potential investors, sponsors, and media partners on the planned new league, which could debut as soon as 2027. As part of the pitching, the league will provide potential investors with access to internal materials, including financial projections, according to Bloomberg. The NBA will own a 50% stake in the league, which is expected to include at least 12 franchises, Bloomberg reported.
The NBA is “confident and very encouraged” about the level of interest it has received from stakeholders across Europe, according to a source familiar with the league’s thinking.
A representative for the NBA tells FOS that Silver will participate in a press conference Thursday in Berlin ahead of the game between the Magic and Grizzlies. The NBA’s plans in Europe and progress with the league will likely be asked about.
EuroLeague’s Reservations
EuroLeague has not been completely supportive of the NBA’s upcoming entry. In April, EuroLeague said it viewed the potential creation of a new European league as a “threat to the long-standing traditions of European basketball,” while noting it was open to discussing any plans that could contribute to the “continued growth” of the sport in the region. That same month, the Union of EuroLeague Basketball Officials signaled “unwavering commitment” to EuroLeague.
Currently, 9 of EuroLeague’s 13 permanent teams have extended their licenses to play in the league for an additional decade—most recently, Barcelona informed the league and its teams of its intention to sign a 10-year extension, a source confirmed to FOS. That was also first reported by Eurohoops. Barcelona’s extension has not yet been publicly announced.
Signing to stay with EuroLeague doesn’t mean teams can’t still depart for the NBA’s league. Exit clauses in renewal agreements stipulate that EuroLeague teams would be required to pay an $11.6 million (€10 million) penalty to exit the league before the contract’s expiration date, plus additional damages in an amount that would be determined depending on the situation, a source told FOS. The €10 million exit fee, which was first reported by BasketNews, existed before the NBA’s planned European expansion.
Collaboration Is Still Possible
EuroLeague remains open to some kind of collaboration with the NBA and FIBA, according to a person familiar with EuroLeague’s thinking. The two sides have met several times over the past year, including once in May and again in October, but no agreements have been reached.
Following the October meeting, EuroLeague said it appreciated the “constructive dialogue” with the NBA and FIBA, while “emphasizing that any potential framework for cooperation must respect” its core principles. Those include a shared benefit for both sides, the preservation of European basketball’s “cultural integrity,” and more.
EuroLeague is “looking for ways to collaborate and has been proactive in offering different possibilities,” a source familiar with EuroLeague’s thinking told FOS. “But it takes two to tango. It’s complicated, and no cooperation framework has been reached.”
A source familiar with the NBA’s thinking told FOS the planned new league is “designed to follow European sporting culture by offering a transparent, merit-based pathway for teams to qualify,” while also aligning its schedule with domestic league and national team schedules so that players can represent their club and national team year-round.
A representative for EuroLeague declined to comment.
