According to reports, NBA looking for $ 500 million or more than a franchise fee for each team in the European League
Anyone wondering why the owners of the NBA seem to push stronger for the start of an NBA alloy in Europe than to expand nationallyWe have some answers for you.
But it’s just about money.
Commissioner Adam Silver was in Europe last week, talking about the vision of the NBA and selling it to potential stakeholders in the new company, Including Real Madrid, reports Joe Varden of The Athletic. Part of what silver and the championship are launching is a $ 500 million franchising commission to buy, Report the Sports Affairs Diary.
The NBA is pursuing franchise commissions of over $ 500 million from teams trying to join the NBA Europe potential, with multiple sources that maintain the favorite number of the League is between half a billion and $ 1 billion …
The franchising assessments are also said to be part of accessory discussions with banks and conglomerates of private equity, as part of an effort to settle for a dollar figure. An official of a Euroleague franchise had previously derived from a figure proposed by $ 500 million and – considering the model for Europe NBA includes existing Euroleague clubs – seemed unclear if the teams do not have a price outside the accession.
Find out why do this idea like this idea? They could guarantee a share of these huge franchising commissions – at least 10 teams by half a billion each is minimal $ 5 billion, on what the expansion commission would be for a team in Seattle or Las Vegas – without having to give up any of their new revenues or national championship television actions.
What the NBA provides are some most important European team teams of stakehing “a” license to license from the existing euro-acting of the ship in the new NBA League, with Real Madrid seen as the most available team to make a move (also the Asvel Paniere owned by Tony Parker is one to watch). So the NBA could draw on funds of sovereign wealth and private equity – limited groups as a NBA team in the United States can possess – to put together expansion teams or support smaller existing teams, Something Varden detailed Athletic.
The United Kingdom hosts the powerful premier league of football and is also another place where the NBA could attract large dollars of football from the Middle Eastern sovereign funds. The reigning champion of the British Basketball League, London Lions, is owned by the Tesonet technological giant …
In addition, Silver and his collaborators met in London this week with representatives of four private equity companies (CVC, Redbird, Bridgepoint and Kkr), as well as officials of the Turkish basketball club and the Galatasaray football club.
The NBA believes that there is money left on the table in Europe, in sectors such as the transmission rights and the construction of new larger arenas. What the NBA has totaled is its brand and its commercial acumen: the ability to squeeze every dollar outside the basketball business. What Real Madrid and teams such as FC Barcelona or Fenerbahçe Istanbul bring history and an integrated fan base for the League.
We are still a few years after an NBA League in Europe, but it has become an growing focus for the League. From the point of view of the owner of the existing NBA, it is easy to understand why this is attractive. We will see if the European clubs (and the bases of the fans) feel the same way.