RedBird Capital are determined to participate in NBA Europe, and AC Milan will almost certainly end up being implicated.
Our recent Substack article broke down what the NBA’s European expansion entails and why Milan might end up a part of it. La Gazzetta dello Sport meanwhile confirm that Gerry Cardinale has been a fan since day one and has certainly not changed his mind in recent days.
In fact, it is possible we will see a red-and-black Milan-based side playing in the new league. Cardinale is undoubtedly continuing to evaluate the plan: he is in constant contact with the NBA, and his ideas for the near future certainly include expanding into basketball.
What is required
There are at least three major issues to resolve. The first is obviously financial: it’s not easy to understand how much it would cost RedBird to join the league.
This week, the NBA opened its data room – the files containing accounts and forecasts for NBA Europe – to all interested parties (funds like RedBird, football clubs and existing basketball teams). The cost of the franchises would range between $500m and $1bn, depending on the size of the market and the club’s influence.
Cardinale Ibrahimovic NBA
A market like London, for example, where there’s no basketball team but Europe’s best arena (the O2) and significant economic interests, is valued at $1bn in the NBA’s plans. Real Madrid, arguably the most famous club in the world with an already established fan base, could pay half that.
Milan, in the NBA’s plans, likely falls somewhere in the middle. The NBA are expecting non-binding offers by the end of March, so there’s room for negotiation on the amount.
Another major issue is Milan’s relationship with Olimpia and Inter, the other two Milanese clubs involved. Oaktree, Inter’s owner, are in contact with the NBA, but its interest appears decidedly more lukewarm on things.
The relationship with Olimpia – which has represented basketball in Milan since the 1930s – is more complex. Milan and Olimpia have undoubtedly spoken in recent weeks and will have to decide, jointly or separately, whether to submit a non-binding offer to the NBA by the end of March.
The third point: the arena. An NBA Europe franchise will need a high-quality facility for home games, typically seating at least 15,000 people. In this regard, it’s important to understand that it will be located in the San Donato area, where the Diavolo were considering building its new stadium.
What is NBA Europe and why are AC Milan involved? [Bonus Article] by Rocket Sports Internet
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It could become home to an 18,000-seat arena, which for the NBA would likely be ideal. For RedBird, this would be another significant expense, so the scenario is clearly complex.
Buying a franchise means becoming a shareholder in the new league, whose ownership will be divided between the NBA and the 12 permanent teams (plus four qualified for sporting merit).
According to the plans of the League and FIBA – the global basketball governing body with which the NBA is teaming up for this project – the cities with a permanent team will be Milan, Rome, London, Manchester, Paris, Lyon, Madrid, Barcelona, Berlin, Munich, Istanbul and Athens.
The new league would kick off its first tip-off in one of these cities in the fall of 2027. The league promises to fund the growth of basketball on the continent through investments in both national leagues and grassroots sports. A true revolution that, if the NBA succeeds, could come to Milan.