NBA-EuroLeague talks at an impasse, adding uncertainty to bidding process
With a former NBA man installed at the top of EuroLeague, conciliatory noises coming from both camps and fresh talks held this week about cooperation, the prospects of a peace deal between basketball’s two biggest club organisers looked to be better than ever.
But following the meeting, at the headquarters of world governing body Fiba in Geneva on Tuesday, those hopes appear to have been checked. Despite a joint statement from all parties hailing “constructive discussions”, an impasse between the NBA and EuroLeague remains.
The NBA is determined to launch its own European league in October 2027, in collaboration with Fiba, and has been emboldened by the breadth and size of bids for the 12 permanent franchises which were lodged by institutional investors and existing clubs in recent weeks.
It has invited EuroLeague to join the venture but, as it stands, only on the NBA’s terms. In practice, this means that EuroLeague’s biggest teams, like Real Madrid, Barcelona, Fenerbahce and Olympiacos, could buy their way in but the smaller teams would likely be left out.
The NBA’s vision is to combine the current giants of European basketball with new teams in key markets that are currently underserved, including London and Manchester. Milan, Rome, Berlin and Munich have also been identified as bases for franchises.
EuroLeague’s position is understood to be that it will only agree to cooperate on NBA Europe, as the new competition is provisionally being called, if all 20 of its teams are assured of places. That, however, would mean the new league being much bigger than the NBA had intended.
Sources close to this week’s talks described them as polite and respectful but lacking in progress. For all of the encouraging noises made by NBA commissioner Adam Silver lately, its proposal to EuroLeague was essentially the same as the one it rejected last year, sources said.
Further talks are planned. The NBA’s top man in Europe, George Aivazoglou, is due to attend the BCL Final Four in Spain next week. EuroLeague bosses are focused on its season climax in Athens later this month, however, and the plans for NBA Europe may need to advance before then to meet its ambitious timeline.
The state of bidding for NBA Europe teams
The NBA and its advisors, JPMorgan and the Raine Group, are currently firming up the non-binding bids made at the end of March. They are said to have received interest from 120 parties, with some bids valuing the most popular franchises at more than $1bn.
It is expected that some potential investors will withdraw, while others may be knocked back if their valuations do not meet those of the NBA. The US giant is said to be conscious that any new owners will be guardians of its brand, so will be mindful of achieving a good fit.
Questions remain over some of the most prestigious franchises, however. Real Madrid are yet to commit to either staying in EuroLeague or joining NBA Europe, while Qatar’s expected bid for a Paris franchise to sit alongside football club PSG is understood to have not materialised yet.
Bidders attached to football teams are known to have pushed back strongly against the demand for licence fees of $500m to $1bn. That haggling continues, while there is also robust debate over the proportion of revenue from the new league that is retained by the NBA.
There are suggestions, unconfirmed at this stage, that the deadline for binding bids for NBA Europe franchises has been set for the end of May. That raises the prospect of investors having to commit before they know whether the new league will have a direct rival or not.
Will NBA and EuroLeague find a compromise?
The NBA is understood to retain hope that, with its former executive Chus Bueno now at the helm of EuroLeague, there is more will than ever on both sides to do a deal. The meeting in Geneva was the first since Bueno’s election as chief executive in January.
The US league is also relaxed at what it considers inevitable bartering and horse trading as part of the bidding process for NBA Europe licences. In that context, EuroLeague holding out gives the likes of Real Madrid and Barcelona some leverage on entry price.
EuroLeague, on the other hand, has made clear that it will not accept some of its teams being forced to qualify for NBA Europe on an annual basis. With the new league set to number 16 teams, that would ensure some of its current members were excluded.
As it stands, then, the NBA’s position can be summed up as: it is pressing ahead, with or without EuroLeague, while EuroLeague’s is that it doesn’t need the NBA and will continue operating its own competition regardless – unless it receives the concessions it wants.
There is thought to be an acceptance at EuroLeague that the NBA’s commercial nous and brand value would be an asset, and that it would be willing to let its US partners take charge of attracting eyeballs. But before then, it appears to be a question of who will blink first.