EuroLeague isn't afraid of the NBA: European basketball is fortified

EuroLeague facing the NBA challenge: Concern or confidence?

The EuroLeague, the main basketball competition in Europe, is closely watching the NBA’s plans to establish a new league on the continent. Although the excitement for the NBA project is palpable, the EuroLeague remains firm in its position.

We’ve only heard the plan or the fireworks of how amazing it will be, how much potential there is. But having a theory is one thing, and making it work is another.
Paulius Motiejunas, CEO of EuroLeague

Motiejunas, leader of the EuroLeague, emphasizes the league’s experience, with 26 years of experience. The EuroLeague, with renowned teams like Real Madrid and Bayern Munich, is considered the most outstanding professional competition outside the NBA. The NBA, in collaboration with FIBA, is considering a 16-team model, with 12 permanent members and a start planned for October 2027. Cities like Athens, Istanbul, Paris, Munich, Berlin, Madrid, and Barcelona have been identified as possible venues. Currently, attention is focused on three shareholder clubs of the EuroLeague that have not yet renewed their 10-year licenses: Real Madrid, Fenerbahce in Istanbul, and ASVEL, owned by Tony Parker, near Lyon. Parker has expressed his support for the NBA. On the other hand, FC Barcelona has indicated its intention to extend its participation for another 10 years. Motiejunas is optimistic about the permanence of the 13 shareholder clubs. Motiejunas points out that the team owners, as businessmen, are also beginning to perceive that the NBA’s announcement about the start of the league is constantly repeated. In addition, the 2027 deadline is getting closer. According to reports, EuroLeague clubs have a 10 million euro release clause, but Motiejunas only mentions that contracts can be broken through “consequences and legal teams.” There is no exit option for the NBA, he added.

NBA vs. EuroLeague?

The EuroLeague claims to be open to some kind of relationship with the NBA. However, it has sent a letter to the NBA, warning of legal action if talks with EuroLeague shareholders continue. NBA Commissioner Adam Silver downplayed the threat and EuroLeague itself. Silver believes that the NBA’s interest in this project would not exist if the ceiling were the current EuroLeague and its fans’ interest. Reports indicate that the NBA is seeking a franchise fee of at least $500 million. Silver warned that investors will need to be patient, as “it will take a while, I think, before it’s a viable commercial enterprise.” He added that it will take “several decades.” Silver warned that starting a new league is a “huge task” and described the conversations with Real Madrid and other Spanish clubs as “more in the fact-finding category.”

The European Market

The landscape of European basketball is similar to that of soccer, with national leagues feeding into continental competitions. The EuroLeague resembles the UEFA Champions League. FIBA, for example, has its own Basketball Champions League, which could be a potential feeder for an NBA league. Silver sees potential because basketball is the second sport in Europe after soccer.

Instead of thinking that we are taking market share away from soccer, I look at the commercial side of basketball as it exists now in Europe, and it probably represents about 1 percent of the sports commercial market.
Adam Silver, NBA Commissioner

Impact in the Middle East

Many European basketball teams, including some from the EuroLeague, have faced financial difficulties. The EuroLeague has implemented spending restrictions to promote financial sustainability. In a revenue boost, the EuroLeague took its “Final Four” championship outside of Europe for the first time last season, to Abu Dhabi. The EuroLeague also awarded a multi-year license to a newly created team in Dubai and recently extended its partnership with the global sports marketing agency IMG.