The effort to line up teams for NBA Europe has been getting an enthusiastic response, according to Joe Vardon of The Athletic.
With the deadline for non-binding proposals passing at midnight Tuesday, two sources tell Vardon that multiple bidders submitted offers of at least $1 billion, while numerous others matched or exceeded the $500MM range. Vardon’s sources cite “serious” interest from more than 120 investors, and he hears that commissioner Adam Silver’s office is delighted with the results.
Several existing European teams are among the bidders, Vardon adds, including some that currently compete in the EuroLeague. Vardon suggests that could have dire consequences for the league as the NBA moves into its territory.
“We have received significant interest from a range of prospective teams and investors for permanent franchise spots in a new league in Europe,” NBA deputy commissioner Mark Tatum said. “The level of engagement and the scale of the bids reflect the marketplace’s belief in our proposed model and the enormous, untapped potential for European basketball. We will now review the bids in more detail and shortlist the partners who share our vision and commitment to accelerating the growth of the game across the continent.”
Potential investors signed non-disclosure agreements with the NBA, two sources tell Vardon. One source describes the initial submissions as “declarations of interest” rather than actual offers. The teams detailed how much they would be willing to spend to be part of the new venture, with investments in potential new arenas factored in.
Vardon hears that the NBA hopes to receive $500MM to $1 billion from each team admitted to the new league, with the amount varying depending on the size of the market. Another source cautions that some European bidders are questioning the NBA’s business plan and that “weeks of contentious negotiations” could be upcoming.
The Athletic has previously cited interest from the Saudi Arabian Public Investment Fund in submitting a bid for a team based in London. In addition, Qatar Sports Investments hopes to own a franchise in Paris, and Gerry Cardinale’s RedBird Capital is eyeing a club in Milan.
The NBA is focusing on a dozen cities for the league, and sources tell Vardon that there’s “competition across each of (the) 12 target cities from a variety of investor types.” Along with London, Paris and Milan, Vardon states that the preferred locations are Rome, Barcelona, Madrid, Athens, Istanbul, Berlin, Munich, Lyon and Manchester.
AEK Athens submitted a bid to be the Athens franchise, according to Stefan Acevski of Eurohoops.
With the bids now in hand, the NBA and its partners will begin narrowing the field to the most qualified groups, Vardon adds. Final approval is required from the Board of Governors, but Vardon sees that as a formality.
Vardon reports that the NBA plans to announce the license holders in waves, rather than all at once. Silver remains focused on having the new league begin playing in October 2027.
Again, not getting the top teams. Barcelona just recommitted another ten years to euroleague. Madrid will be next. These teams run in affiliation or basically by their soccer clubs, don’t need Silvers help to make money. How could Silver do better at promoting the game for global Giants like this. The brand is already top of the pops.
Reporters please I beg you stop giving Adam ideas about Europe or he is going to change his mind on expansion!
Adam! Look! Shiny space needle! Gambling!