NBA targets US$1 billion team valuations as it courts investors for Europe league
Proposed competition, which could start as soon as next year, would comprise 12 franchises, with the NBA retaining 50 per cent ownership
The National Basketball Association has prepared a pitch to investors on a new European league, targeting team valuations of up to US$1 billion, as it readied a pair of regular season games in London and Berlin.
NBA commissioner Adam Silver will attend a pair of regular season games in London and Berlin starting on Thursday between the Memphis Grizzlies and the Orlando Magic. Both cities are likely to host a team in a league that could debut as early as next year, according to sources.
The NBA will also open its data room for the planned European league to investors in the coming days, including financial projections, the sources said. The project would include 12 franchises and four additional teams that qualify for the competition without owning equity, while the NBA would retain a 50 per cent stake in the new league.
Fiba, the world governing body for basketball, would have a stake in the new league, along with the team owners, one of the people said.
The NBA would also hold a private conference in London to meet potential sponsors, media partners and investors in mid-January, according to people familiar with the situation. Existing NBA owners have also expressed interest in buying stakes in European teams and the league, the people added. NBA rules currently prohibit the ownership of more than one team.
“We’re casting a very, very wide net right now and essentially saying to anyone who’s interested, come see our bankers,” Silver said in December. “Explain to us why you’re interested, how you view the opportunity, what resources you would put behind opening a team.”