The NBA is planning a new European league with team valuations of up to $1 billion, offering investors flexible buy-in options over several years, while retaining a 50% stake and sharing ownership with FIBA and team owners.
The NBA is preparing to pitch investors on a new European league, with team valuations potentially reaching up to $1 billion, according to Bloomberg reporters Giles Turner and Jake Rudnitsky.
In the coming days, the NBA will open its data room for the planned league, providing investors with financial projections and other key information, per the same report.
NBA Commissioner Adam Silver will attend a pair of regular-season games in London and Berlin starting Thursday, featuring the Memphis Grizzlies and the Orlando Magic.
The NBA Europe project is expected to feature 12 franchises, with an additional four teams qualifying to compete without owning equity.
The NBA would retain a 50% stake in the league. FIBA, the world governing body for basketball, along with team owners, will also hold stakes in the new league, according to sources cited by Bloomberg.
The NBA plans to hold a private conference in London in mid-January to meet potential sponsors, media partners, and investors. Existing NBA owners have also shown interest in buying stakes in European teams, the report adds.
Investors may not need to commit large amounts of cash upfront, as the league is considering allowing them to buy in over several years.
Financing options for potential teams are still under discussion, and nothing has been finalized.
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