NBA Europe 2027: Permanent Franchises, FIBA Partnership, Big Payouts
NBA commissioner Adam Silver reports “record interest” for NBA Europe franchises. Bids due June 29. League promises tens of millions yearly to each of 16 teams plus NBA broadcast + digital tech.
“League for the Next 100 Years” - NBA Europe revenue plan revealed...
George Aivazoglou, an NBA senior executive, told AFP that the proposed new European league would pay out hundreds of millions of dollars each year to its teams.
The NBA’s European competition is set to launch in 2027 with FIBA as a partner. Questions about whether the finances stack up have been a major focus of criticism around the plan.
Aivazoglou, the NBA’s managing director for Europe and the Middle East, said teams would have to invest $500 million to $1 billion to join. In exchange, they’d become “partners” in NBA Europe.
Most top European basketball clubs operate at a loss right now. The NBA’s plan would instead use franchises - many of them new - based in big markets like London, Paris, Berlin, and Madrid.
Those markets are already crowded. Football dominates the sports scene, leaving little room for new competition.
NBA commissioner Adam Silver said two weeks ago that interest from prospective franchises hit a record high. Bids to join the new league are due by the end of this month.
Beyond FIBA, the NBA has also talked with EuroLeague Basketball. EuroLeague runs the continent’s premier club competition - basketball’s version of the Champions League - which dates back to 1958.
Even with the massive upfront cost, the NBA is selling the new league as a major profit driver for investors.
“The partner becomes a shareholder. There is asset value there,” said Aivazoglou.
“This is the NBA's league in Europe and this will be an asset that is worth in the 10s of billions of dollars.
“So you're buying into that, obviously buying into a share of the NBA brand, which as we know will be a significant accelerator of how we create value in the ecosystem.”
Aivazoglou said teams would get access to the NBA’s “direct-to-consumer digital tech, broadcast operations, and commercial capabilities.”
The concept calls for 12 permanent franchises plus 4 teams that earn their spot through qualification, making a 16-team competition.
Every club would receive “very significant central payouts from the league - we’re talking hundreds of millions per year in total,” Aivazoglou added.
Split 16 ways, that works out to tens of millions of dollars per franchise annually.
A source inside Qatar Sports Investments - PSG’s owners, who the NBA has approached about launching a team - told AFP in January that the upfront cost was so high it was a dealbreaker.
Still, the NBA says it will put $3 billion into the project to offset early losses.
Aivazoglou insisted, “We’re building a league for the next 100 years.”
After bids close on June 29th, the NBA “will move forward with next steps that could include announcements from there.”
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