There continues to be ongoing dialogue between the NBA and EuroLeague about the NBA’s proposed European league, writes Joe Vardon of The Athletic. However, the two sides are still working through the details of what a potential partnership might look like.
According to Vardon, new EuroLeague CEO Chus Bueno — a former NBA executive — will meet this week in Barcelona with George Aivazoglou, the NBA’s day-to-day leader of the project. Aivazoglou’s title with the NBA is managing director of Europe and the Middle East.
As Vardon details, the NBA has sought the money, fan bases, infrastructure and “local gravity” of European football (soccer) giants for NBA Europe, but those teams don’t view the situation as being on even footing in negotiations.
“The clubs are still of the mind that the NBA needs them much more than the clubs need the NBA,” one source familiar with the talks told The Athletic. “Half these clubs don’t really need a basketball team. If you really challenge them, I think they would love to have one in many ways but it’s not a necessity.”
Still, Vardon points out that some of those clubs could be incentivized to “play ball” if they hope to eventually own NBA teams in the future. Sovereign or public wealth funds are currently limited to minority ownership stakes in NBA clubs, Vardon notes, but it’s possible that could change down the line, especially if the board of governors and league office support the idea.
Vardon describes the current situation as “tense,” since both sides are trying to find a middle ground in several areas. While the NBA would like all of the current EuroLeague teams to be involved in NBA Europe, the NBA is also insisting license holders pay a sliding-scale fee based on market size on top of seeking infrastructure improvements, Vardon reports.
“Why should one pay less or more than the other — there should be some coherence around the valuations,” a representative for a potential NBA Europe team said.
Some of the European soccer giants have also floated the idea paying of NBA teams to essentially rent their star players for a period of time, like the transfer system. The NBA viewed that concept as a nonstarter, however.
“This is not something (the NBA) are currently entertaining or considering,” a source familiar with the negotiations told Vardon.
Regardless of how the talks play out, Vardon still hears Saudi Arabia’s Public Investment Fund will likely own one of NBA Europe’s licensed teams, with London as the market.
Wait…you mean Madrid, Barca and PSG don’t need Silver? No, who would of thought.
Telling these sporting giants they need more exposure and help making more money is the most delusional take ever.
Not exactly sporting giants. and that is Silvers point. If the NBA comes to Europe their brand is worth much less. Join now or lose out.
Does the NBA really think that Europe wants any part of America right now?
If I read this correctly. and I like to think I am, it sounds like the NBA is staging a hostile takeover of European Basketball and daring current European teams to either succumb or face extinction.