Nonbinding franchise bids for the NBA Europe project are due by the end of March, while the NBA will give access to financial projections and the governance structure to private equity funds and some EuroLeague teams, including Real Madrid, Barcelona, Fenerbahce, Bayern Munich, and others.
The NBA Europe project is gathering unprecedented momentum.
NBA Europe Financial Projections and Private Equity Interest
As the Financial Times reports, the NBA will share financial projections for its proposed European division with private equity firms and elite football clubs.
Per the report, Blackstone, CVC Capital Partners, RedBird Partners, and General Atlantic are among the firms involved.
BlackRock, BC Partners, and Oaktree Capital are also set to be given access to the documents as investors assess whether to back teams that would participate in the new league.
A New Ownership Model for Europe
In US sports leagues, including the NBA, private equity firms are not allowed to own the teams.
However, NBA commissioner Adam Silver noted in London last week that the European league will adopt a different model, reflecting the fact that sovereign wealth funds and private equity firms already operate prominent teams across the continent.
Credit Rokas Snarskis
NBA Europe Valuations and Timeline
The NBA has reportedly narrowed a pool of over 300 interested parties down to several dozen potential backers.
Nonbinding franchise bids are due by the end of March, with the NBA Europe aiming for a 2027 launch.
The Financial Times adds that the NBA Europe teams are expected to be valued at between $500 million and $1 billion.
EuroLeague Teams Involved in NBA Europe Talks
Executives at top-tier clubs such as Real Madrid, FC Barcelona, Bayern Munich, Fenerbahce, and Panathinaikos will also have the opportunity to review their governance structures and revenue forecasts.
Shortlisted participants also include Olimpia Milano and ASVEL, owned by French NBA legend Tony Parker.
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