NBA Europe will give teams in the region a “much quicker pathway to profitability” and provide the financial stability lacking in the existing European basketball structure through multi-billions of dollars in distributions, according to NBA deputy commissioner Mark Tatum.
The top North American league is aggressively pressing ahead with plans to launch a new competition in Europe despite shareholders at Euroleague Basketball rejecting an offer to unite on the project earlier this month.
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Instead, the EuroLeague is now moving ahead with an expansion of its competition and a move to a franchise model.
Last week, the organization unveiled a 10-year business plan in which it will distribute €3.4 billion ($3.8 billion) to participating teams over that period – comprising €2.2 billion from revenues and €1.2 billion from franchise fees.
The key economic aspects of the decade-long plan were approved by all 13 EuroLeague Commercial Assets (ECA) shareholder clubs.
The project aims to “significantly increase the league’s commercial revenues and economic distributions to participating clubs, while creating new opportunities for investment and expansion.”
Speaking to international media yesterday, ahead of the start of the 2026-27 NBA season, Tatum stated that the new NBA Europe project will offer a better financial future for teams in the region.
In response to the defiant EuroLeague distribution plan that seems to be stymying a merger with NBA Europe, he said: “The 10-year business plan by the EuroLeague doesn't affect our plans. Our model will provide clubs with a much quicker pathway to profitability. I saw some of the reports in terms of the teams that are not financially stable in the EuroLeague today. The average permanent team in our league is projected to be profitable by year three.
“I saw the amount of investment that the EuroLeague is going to put into or distribute back to its clubs. Our projections show that we're going to triple those projections – billions and billions of dollars in distributions over 10 years that will go back to these clubs and make them financially stable.”
He continued: “Beyond team profitability, we're also focused on investment. This will be the largest investment in European basketball in its history. We'll invest in academies, grassroots development, league operations, marketing, and arena infrastructure, which is really needed.
“We’ll leverage the NBA's global platform, reach, and expertise in premium IP to unlock the full potential of European basketball and put the game on a stronger financial footing, which is going to be better for the clubs, players, and fans.”
At a key shareholder meeting in early October, all 13 member clubs of the EuroLeague rejected the proposal from the NBA, which offered to merge its planned NBA Europe league with the continent’s top club competition.
That offer was extended to the 13 members of ECA, but not any of the other prospective EuroLeague franchises.
The door, however, is open to future offers from the NBA, meaning that there may yet be an agreement with the North American league, although it is equally as likely that no deal is reached, and the NBA Europe competition debuts as a rival to the EuroLeague.
The future of European basketball is in the balance, with the NBA saying it is keen to move forward with the new league in 2027 whether a deal is reached or not.
Tatum said: “I don't want to disclose any private conversations with the EuroLeague. We continue to be hopeful that we'll reach an agreement, but we're prepared to proceed regardless. As I think about their plans for expansion, again, look at what they've said in terms of the financial instability of the teams. So, when you add new teams to that and teams already are not financially sustainable, is that a model that you want to follow?
“Our model will provide clubs with a much quicker path to profitability. Over the first decade we project multi-billions of dollars in distributions back to clubs. That is going to give them much more financial stability and the ability to reinvest in the basketball ecosystem.”
Tatum, who also serves as the NBA's chief operating officer, confirmed that the plan remains to launch the European competition in October 2027 and that the league is “moving and proceeding as quickly as we can.”
The NBA is working with the sport’s international governing body FIBA on the project, with the two parties initially outlining their plans last December.
NBA Europe has targeted 12 major European cities as the key cornerstones for its mixed membership model, which will involve 16 clubs, with 12 permanent franchises and four places available each year through qualification from domestic leagues or a second-tier European competition.
Those 12 cities are: Milan and Rome (Italy), Berlin and Munich (Germany), London and Manchester (UK), Paris and Lyon (France), Madrid and Barcelona (Spain), Istanbul (Turkey), and Athens (Greece).
Unlike the EuroLeague, NBA Europe is seeking to operate a semi-closed model that would reward teams through qualification on sporting merit.
Explaining the model, Tatum said: “The alignment of what we're trying to do here in terms of revamping the European basketball ecosystem is so that fans have a very clear idea of what the top-tier league looks like.
“What the pathway is from a local club into the top-tier league will be very clear, which it's not today. We're looking to revamp, with FIBA, the entire European basketball ecosystem, which we think would be better for fans, clubs, players, media partners, and marketing partners. Our expertise and experience in running successful leagues, is going to be something that will be welcomed by the fans, clubs, players, and the entire stakeholder systems in Europe.”
It has been reported that the NBA has found success in the bidding processes for its 12 prospective permanent franchises, including multiple bids exceeding $1 billion.
The league has received offers in all 12 markets, both within its $500 million asking price and beyond the $1 billion mark.
With the scheduled October 2027 launch date, the process to sell teams is expected to ramp up in the coming months.
On when the teams could be awarded, Tatum said: “There’s no timeline yet on when we announce the clubs. Our timeline is we plan to start rolling this thing out a year from now. I do anticipate that in the not-too-distant future we will be announcing who some of the franchises are going to be. We're moving quickly.”
