Former EuroLeague CEO Jordi Bertomeu argued that proposed valuations for NBA Europe teams do not match the financial reality of European clubs. He also addressed market expansion, noting that penetrating saturated regions like the UK remains a major challenge.
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Jordi Bertomeu worked as EuroLeague's CEO for more than two decades.
Spaniard isn't that active in European basketball anymore, but he still voices his opinions on the trending topics from time to time.
NBA Europe not correlating with reality
Speaking for the European Basketball Advisory Group Business Conversations , Bertomeu was asked to talk about the proposed fees for NBA Europe teams.
He suggests that valuations do not correspond to the reality:
"In my opinion, valuations at the level you mention do not correspond to the reality of basketball in Europe," Bertomeu started.
"If it were feasible, the first consequence would be an almost general replacement of the current owners of the clubs by new owners, the investors."
"It is obvious that the current clubs do not have the capacity to assume those valuations. And it remains to be seen whether football clubs are willing to make investments of this level for the basketball sections."
"If the answer is that the investment will be profitable in the very long term, we must remember that sport is very dynamic and the sports industry also changes easily, so making forecasts for such a long period involves a lot of unpredictability," he said.
EuroLeague's struggles with markets
Bertomeu also reflected on the fact that EuroLeague still struggles to push themselves in the UK market:
"The EuroLeague has always had the clear idea that basketball should go beyond the traditional markets. Even though we were unsuccessful, we must remember that in the first two seasons we had a team in London," he said.
"Later, we incorporated Turkiye into the group of top-tier markets, and shortly after, I went to invite Bayern Munich before they were promoted to the German first division. France always had tradition, although without sports results at the club level."
"But I agree with the analysis. Progress has been made in France and Germany, but not in the UK. Nor in the Scandinavian countries. And Italy does not have the weight it always had in European basketball."
"The causes depend on each country, but it is clear that the UK is a very saturated market and requires an ad hoc strategy, with a clear vision in the medium and long term, and an action and investment plan that places EuroLeague within the entertainment offer for the British. The fact that there is no relevant local competition undoubtedly adds difficulty. A joint strategy could be something to consider," Bertomeu concluded.
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