NBA 'explores' possible European expansion

PARIS — The NBA has said it is "exploring" the creation of a professional basketball league in Europe, but the plans remain vague and raise many questions.

Among them are: Why is the powerful United States-based league taking this step? How does it intend to make money? And, is the EuroLeague, the home of Europe's best clubs, doomed?

Why has the NBA got designs on Europe?

For several years now, the NBA has wanted to plant its flag on European soil and go beyond the annual preseason tours and regular season events held in Europe over the past four decades.

According to NBA commissioner Adam Silver the league has "had discussions around potential opportunities in Europe for decades".

"We're ready to go to the next stage, and that's to explore a potential league in Europe with FIBA as our partners," he said last month.

The NBA has already quenched its thirst for expansion by creating a women's league, the WNBA, the "development" G-League in the US, and the Basketball Africa League.

Backed by record television rights receipts worth around $76 billion from 2025 to 2036, it now seems ready to take the plunge in Europe.

The move might have been precipitated by reports that investors, advised by LeBron James' former manager Maverick Carter, are attempting to create a league consisting of six men's teams and six women's teams playing games around the world, according to Patrick Rishe, Director of the Sports Business Program at Washington University in St Louis.

"The (NBA's) primary motivation is to just simply further globalize their sport. They've done a great job of doing that over the decades," he said.

Rick Burton, professor of Sport Management at Syracuse University, said the attraction of European cities like Paris, Berlin, London and Munich to the NBA was clear.

"You could see a day where some of the smaller US cities might conceivably be replaced by much bigger global cities, but you've got to get there slowly. You can't just do it overnight.

"So, I think that this is maybe just the start, and it's something that they've probably been thinking about for years."

How would it make money?

The major European cities represent a colossal potential market for the NBA.

Although the EuroLeague, Europe's premier competition, is attracting ever-increasing numbers of spectators (an average of 10,383 per game in 2023-24), "all its clubs are losing money", according to Philippe Ausseur, President of the French National Basketball League (LNB).

The NBA estimates, according to several reports, that it could earn three billion euros ($3.46 billion) a year profit in the long term, adding in the Middle East, another identified growth area.

How would it do that when the world's best players will always play on the other side of the Atlantic?

"The marketing power of the NBA remains incomparable," said Ausseur, suggesting it could "contribute enormously in terms of commercial partnerships".

The EuroLeague's only major sponsors this season are Turkish Airlines and Indian tire maker BKT.

The EuroLeague has failed to attract major broadcasters and to secure significant TV rights, something that would also represent a genuine challenge for the NBA.

"It's easy to find a broadcaster in the USA, but in Europe you have to find seven to 10, with different arrangements in different countries," Ausseur said.

Pairing with major soccer clubs?

The NBA has said it wants to work with Europe's major sports clubs.

Spanish soccer giants, Real Madrid and Barcelona, as well as Turkiye's Fenerbahce, already have successful basketball teams, but the other clubs reportedly approached do not. Manchester City, Arsenal and Paris Saint-Germain, which have acknowledged they have been approached and have expressed interest, would be starting from scratch.

"It's rather the NBA's tropism: it sees that the big sports brands in Europe are soccer brands. But, in basketball, there's only Real, Barca and, to a lesser extent, Bayern," Ausseur said, pointing out that domestic basketball "hadn't made any inroads on the (British) market". The London Lions' ambitious project has fizzled out, and the British league is in serious financial difficulties.

What about the EuroLeague?

The EuroLeague is threatened by the project, which the NBA is devising with its rival, the international federation FIBA.

The EuroLeague, a virtually closed, private competition, was created in 2000 by the big clubs, who left FIBA's fold for financial reasons.

Can the NBA entice clubs to move the other way now? In January, the 13 shareholder clubs renewed their partnership with marketing agency IMG until 2036, but the EuroLeague told reporters that not all had renewed their licence to participate in the competition, and they have until June 2026 to do so. Could FIBA, EuroLeague and the NBA reach an agreement before then?

"I think it's the only way," EuroLeague boss Paulius Motiejunas told French sports daily L'Equipe, indicating that the NBA had first approached him in March 2024. Another meeting took place in March this year.

"There is still time for discussions to take place, and for reason to prevail," said Ausseur.

He warned, though, that "everyone will lose out" if the NBA's move leads to a new, splinter competition alongside the others.

Agencies Via Xinhua