- The NBA and FIBA are planning a new European mens league with 12 permanent franchises plus merit-based entrants, potentially launching in 202627.
- Investors are being pitched about $1bn valuations, with expected franchise fees of roughly $500m1bn in top markets.
- The NBA would retain 50% of league equity alongside FIBA and European team investors, with London and Berlin among leading candidate cities.
- JPMorgan and the Raine Group are running the investor process ahead of an expected NBA Board of Governors vote in early 2026.
Read More
The NBA-FIBA joint initiative to create a European professional men’s basketball league represents a high-stakes move into an under-served yet potentially lucrative sports market. The league is being structured with 12 permanent franchises and several merit-based entrants, allowing both exclusivity and some openness. Franchise valuations of around US$1 billion suggest a model designed to compete not only with established EuroLeague clubs but also to attract top investors accustomed to US franchise economics.
Ownership arrangements are central: NBA retaining 50% equity implies that investors will have to be comfortable with joint control structures. The inclusion of FIBA and existing club owners may help legitimize the venture, but the governance implications—especially how teams are selected, how profits and losses are shared, and how rules like relegation or qualification from domestic competition are handled—remain open issues.
Financials and timing: franchise fees are projected between US$500 million and US$1 billion in major cities; ancillary revenue streams will likely include media rights, sponsorships, merchandising, and arena enhancements. The NBA is currently preparing data rooms and investor materials, with JPMorgan and Raine advising. Formal approvals are expected in early 2026, with a launch date as early as 2026-27 or more conservatively 2027.
Strategic implications: For investors, this is an opportunity to get ahead of the curve in European basketball commercialization. However, risks are substantial: competing with EuroLeague and domestic leagues, cultural resistance to closed franchise models, regulatory approvals, and execution challenges on venue, scheduling, and player availability. For the NBA, this could expand its brand and revenue base but could strain relationships in existing European basketball structures.
Open questions include: Which European clubs will defect or join? How will domestic league calendars be preserved? What thresholds will franchise fees ultimately settle at? Will fanbases accept permanent franchise vs qualification models? And which investors—sovereign funds, PE, or football clubs—will take the lead, especially in markets like London, Berlin, Paris, and Turkey? The answers will shape both valuation and viability.
Supporting Notes
- NBA and FIBA are advancing plans for a European league with 12 permanent franchises plus additional teams qualifying without ownership stakes.
- Franchise valuations for permanent teams are being pitched at approximately US$1 billion.
- Franchise fees are expected to fall between US$500 million and US$1 billion in major markets.
- NBA would retain ownership of 50% of the league; FIBA and other European team or club investors may share remaining equity.
- Cities such as London and Berlin are likely hosts for franchises, with those two also hosting NBA regular-season games in early 2026.
- JPMorgan Chase and the Raine Group have been hired as financial advisers and lead investor outreach.
- Launch timing is targeted for 2026-27 or by 2027, subject to board approvals from NBA and FIBA.
- Existing NBA rules currently prohibit owners from owning more than one team; NBA Europe ownership may require rule changes or adjustments.