A new European basketball league is taking off and the NBA has pledged to invest $3 billion to make it a success.
Basketball aficionados only really have one place to watch top-level games right now and that’s the NBA. Aside from college basketball, and basketball leagues in China, Spain, and Australia, there really isn’t much in the way of competition.
While the NBA will likely reign supreme for years to come, there is hope that the new European league can grow to a substantial level.
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Investors worried about wait for profits from European basketball
The NBA had been seeking investment in the plans with suitors registering interest back in March, but the same concern kept arising: would there be any profit to be made?
It’s said the NBA has received “significant interest” from investors at this stage, with bids between $500m and $1bn on the table, and some even exceeding the billion-dollar mark.
Now, the NBA has moved to put any of those concerns regarding revenue projections to bed by stating it will invest a further $3bn into the nascent league.
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A report from the Financial Times says the NBA will offer guaranteed annual payments for each team and increased prize money in what has been described as “measured refinements.”
As for who will be involved and what the league will entail, the report adds that more than 120 expressions of interest have been lodged, with investment firms, wealthy individuals, existing European basketball teams, and even football clubs keen to be a part of the venture.
How will the European basketball league work?
First things first, this would be a separate league from the current EuroLeague, which has been operating since 2000.
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The European basketball league is set to combine the franchise model adopted in the US, while also factoring in elements of European league structures.
It is believed that the 12 teams entering the league in its first year would be exempt from relegation, while a further four to six spots would be made available to other teams each season based on performance.
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The NBA will own a 52% stake in the league, but that will decrease over time as new teams are added to the roster.
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