The EuroLeague shareholder clubs are set to meet this week to discuss a 10-year strategic plan, with potential changes in ownership structure and expansion on the agenda, as the NBA explores opportunities in Europe. Representatives from the 13 permanent EuroLeague shareholder clubs gathered in Lake Como on Monday evening, ahead of a key vote on plans that would change the clubs into franchises and increase the EuroLeague from 20 to 24 teams. Additionally, 14 bids for long-term franchise spots will be evaluated, with up to eight expected to be awarded via ballot.
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The proposed changes aim to enhance the financial sustainability of the competition and promote long-term growth. However, skepticism surrounds the initiative, particularly with the NBA's interest in entering the European market. "I don't think it really changes what is on the table today for the 13 shareholders," said Maurizio Gherardini, President of Lega Basket Serie A, in comments to Reuters.
The EuroLeague anticipates an aggregate value of 4.3 billion euros ($4.82 billion) for the competition and its clubs by 2027, bolstered by projected year-on-year revenue growth of 15% from new commercial agreements. Despite this optimism, clubs like Real Madrid's basketball division have reported annual net losses since the 2021-22 season, while Barcelona has faced overall net losses for the last three years. Economist Ivan Cabeza expressed concerns about the sustainability of the EuroLeague model. "I find it very hard to see how a business like the EuroLeague could undergo a radical change," he noted.
These financial challenges may lead some clubs, especially those focused primarily on football, to consider the NBA's expansion efforts appealing. Reports suggest that NBA Europe Managing Director George Aivazoglou and NBA Deputy Commissioner Mark Tatum have engaged with clubs such as Paris Saint-Germain and AC Milan regarding potential franchise membership. The NBA has made a proposal to the EuroLeague, which confirmed ongoing discussions with both parties.
Cabeza speculated that an attractive offer from the NBA, such as a buyout of franchises for 800 million euros, could alleviate financial burdens for clubs like Barcelona and Real Madrid. "It solves part of your overall debt problem and stops the financial bleeding," he explained. Aivazoglou is expected to provide updates on the NBA's planned 16-team competition in London on Thursday. Both the NBA and EuroLeague plan to move forward with their plans for the 2027-28 season if an agreement is not reached.