NBA Europe Unveils $10bn Strategy Attracting Football Clubs to Join

The launch of NBA Europe has been postponed by a year until 2028. The league will include 16 teams: 12 permanent franchises and four temporary ones selected through a pre-qualifying competition next year. The NBA plans to invest approximately $10 billion over the next decade, marking it as one of the largest startup ventures in sports. Offers for the 12 franchises have surpassed expectations, with the London franchise attracting bids ranging from $500 million to over $1 billion.

Several football club owners from the Champions League have shown interest, with discussions held by Deputy Commissioner Mark Tatum with executives from clubs like Barcelona, Real Madrid, Paris Saint-Germain, Bayern Munich, and Milan. Permanent franchises are also planned for cities including London, Manchester, Rome, Athens, Istanbul, and Lyon, with four additional teams selected from Europe's existing basketball structure.

The London franchise has drawn interest from notable investors such as former Chelsea chair Todd Boehly, a consortium including former Tottenham chair Daniel Levy, and Saudi Arabia’s Public Investment Fund. Buss Sports Capital, having sold its stake in the Los Angeles Lakers, is reportedly interested in the Manchester franchise, while City Football Group (CFG) has not participated despite its strong NBA ties.

The NBA aims to reveal the identities of the franchise owners later this year. "We have well-capitalized investors looking to enter basketball," said Tatum at a recent gathering of European football clubs. Both existing basketball clubs and football clubs have submitted bids, some of which own basketball teams and others that do not.

While the NBA has attracted interest from major football clubs and US investors, it faces resistance within the basketball community. EuroLeague clubs recently rejected the NBA's initial investment proposal, preferring to expand from 20 to 24 clubs instead. Nevertheless, NBA discussions are set to continue.

The NBA's vision involves collaborating with EuroLeague and other basketball organizations to enhance the European basketball landscape. Inspired by European football's pyramid structure, the NBA aims to create clear pathways for clubs to compete at the highest levels, a feature currently lacking in basketball.

The league's hybrid model will feature 12 permanent members and four temporary ones, reflecting the now-defunct European Super League model. Promotion mechanisms will include top-ranked teams from a new second-tier competition and finalists from a tournament for domestic champions. The highest-ranked non-franchise club reaching the playoffs will retain their place in NBA Europe.

Real Madrid's president, Florentino Pérez, is notably invested in NBA Europe, seeing it as a potential model for a semi-closed European football league. Despite Real Madrid's withdrawal from the failed European Super League, Pérez continues to pursue legal challenges against football governing bodies.

Manchester City's CFG, a partial owner of the proposed venue Co-op Live, has not participated in the auction, though the site is considered for hosting NBA games. The NBA is seeking partners to invest in basketball development, including academies and indoor arenas, to stimulate economic growth in European cities.

Tatum, who has connections with CFG chairman Khaldoon al-Mubarak, is working to strengthen ties with Abu Dhabi's department of culture and tourism, maintaining a partnership that includes NBA preseason games. This relationship persists despite Manchester City's recent financial misconduct ruling, which did not affect their exclusion from the franchise bidding process.