There continues to be rumblings about RedBird Capital’s involvement in bringing an NBA Europe franchise to Milan.
According to the source RealOlimpiaMilano (via MilanNews) – who cover the existing Milanese basketball club Olimpia – Gerry Cardinale faces a ‘strategic crossroads’ related to the NBA Europe project.
He and RedBird can either enter Milanese basketball by acquiring Olimpia Milano, or start from scratch with a possible ‘AC Milan Basket’ team. This reasoning stems from the prospect of a more ‘closed’ and sustainable European league.
From this the value of franchises could increase, thanks in part to new media deals and the economic clout of the arenas. Financially, the acquisition of Olimpia is estimated at around €100-150m, with the main obstacle being negotiations with Giorgio Armani’s heirs.
The ‘new club’ option would cost less, but it would risk dividing the local fan base and also raise issues regarding inclusion in national leagues. A key to the deal could be the San Donato Milanese site, which is still owned by AC Milan.
That site in the south east of the city where a 20,000-seat arena and an events centre could be built, with a gradual rebranding over three to five years. Given that a deadline is imminent to register interest in the NBA expansion, the strategy must be devised soon.