NBA Europe: Bids top $1bn as London team proves hottest property – sources
The NBA and its advisors have received several bids in excess of $1bn for teams in its proposed European league, according to sources close to the process.
The US basketball league and its advisors, JP Morgan and the Raine Group, have begun sifting through non-binding offers for the 12 permanent franchises in the new competition after they were submitted before last night’s deadline.
Interest was expected to come from institutional investors, high net worth individuals, owners of European football clubs and existing basketball teams in the EuroLeague for the licences to operate in major cities including London, Manchester, Paris, Milan, Rome, Berlin, Munich, Madrid and Barcelona.
Sources close to the bidding said there had been multiple bids within the $500m to $1bn range, including several bids above the $1bn mark.
“We have received significant interest from a range of prospective teams and investors for permanent franchise spots in a new league in Europe backed by the NBA and FIBA,” said NBA deputy commissioner and chief operating officer Mark Tatum.
“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.”
London NBA Europe team set for top billing
As expected, the London franchise is understood to have been the most sought-after due to its status as a global sports destination and belief in the commercial potential of basketball in the UK.
Saudi Arabia’s Public Investment Fund and Chelsea co-owner Todd Boehly were among the major sports investors credited with interest in acquiring the London team.
Qatar Sports Investments was expected to bid to operate a basketball arm of Paris Saint-Germain but faced competition in the French capital from US investors keen to partner with the city’s existing EuroLeague team.
RedBird Capital was thought keen to buy the Milan franchise and pair it with AC Milan, the football club it owns in Italy’s Serie A.
Barcelona and Real Madrid, already giants of European basketball, were expected to make offers for the licences in their cities. It is understood that multiple EuroLeague teams submitted offers to join NBA Europe.
The NBA, JP Morgan and Raine will sell the teams one at a time, starting with the most in-demand, in order to give unsuccessful bidders the chance to offer on different franchises and partner with other potential investors.