NBA deputy commissioner Mark Tatum provided updates on the NBA Europe project at Sportico’s Invest New York event, and highlighted the ways the new league will differ from the existing EuroLeague. He emphasized how basketball lags other sports in Europe in terms of revenue despite fans’ affinity for the sport and a deep talent pool.
“The existing teams in the ecosystem, quite frankly, are tired of investing tens of millions of dollars a year without showing any appreciation in the values of their franchises,” Tatum said. “They’re looking for a new economic partner.”
NBA Europe will enter lucrative new markets EuroLeague doesn’t serve, including the United Kingdom. Tatum expressed confidence the top franchise fees will land in the range of $1 billion that’s been cited over the past several months.
Investors see an opportunity to improve upon the continent’s shortage of world-class basketball arenas. “Our launch of this league will spur incredible investment in infrastructure projects,” Tatum said. “Let’s say there’s 30 to 40 home nights of basketball. You’ve got 320 other days to fill it up with music and concerts and conferences and other types of events.”
Tatum also mentioned the confusing and somewhat disconnected nature of the current basketball landscape between the EuroLeague, the Basketball Champions League, EuroCup and various domestic leagues. The NBA had previously explored working together with EuroLeague, but in October the owners of EuroLeague clubs voted to reject a potential collaboration.
NBA Europe’s structure will have 12 permanent teams and four open slots where every professional basketball team on the continent has a chance to qualify. “In European sports they want all clubs to be able to dream,” Tatum said. “It’s sort of like the beauty of the FA Cup. … Whereas the incumbent system today is in essence a closed league.”
When asked about potential caution flags for the league when entering a new continent, Tatum discussed the “wild” environment at European basketball games.
“In some of those games, you wouldn’t feel comfortable bringing your family,” Tatum said. “We want to replicate the NBA experience over there while maintaining the culture and the sporting culture and the passion that they have.”
The NBA still has plenty of matters to attend to domestically—most notably, expansion. “We hope to make a decision by the end of this calendar year,” Tatum said regarding the league’s potential addition of teams in Las Vegas and Seattle.
Invest New York was presented by Inner Circle Sports. Thank you to our sponsors Omega Sports Holdings, Davis Polk and Nasdaq.
