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The NBA is making progress in plans to launch a European league, but commissioner Adam Silver was blunt at a Thursday press conference, saying the new endeavor is a long-term project that may take years to generate investor returns.
Speaking ahead of the Magic-Grizzlies game in Berlin, Silver said the league has been meeting with clubs interested in participating in the planned league, as well as potential media partners and sponsors. Reports have said the new league could launch as soon as next year, and franchises could be valued at up to $1 billion.
Asked where the funding will come from, Silver said that, at least initially, it may come from the “member clubs of the league.”
“If we were to successfully launch the new league, it will take a while, I think, before it is a viable commercial enterprise,” he said. “This is not for those who have a short-term perspective.”
He drew a parallel to the WNBA, which will play its 30th season this year. “Not that they are comparable, but I think about the WNBA…for the first decade of that league, the question was usually ‘how long will you stick with this? Because it didn’t seem like it would be a successful venture. Jump ahead and it’s amazing what’s happening in women’s basketball right now.”
He also said the NBA “would like to” launch a women’s basketball league in Europe down the line, “if we can figure out the correct model.”
What About EuroLeague?
Silver confirmed that Spain’s Real Madrid, an existing EuroLeague club, is one of the teams the NBA has held talks with, although he said discussions have been “more in the category of fact-finding,” adding “it would be premature” to divulge any further specifics. EuroLeague teams can leave for another league once their contract is up—Real Madrid, for example, is under contract until June but has not yet extended past then.
Real Madrid is one of three teams that have not yet signed a long-term extension with EuroLeague—which has offered 10-year extensions to all 13 permanent teams, with a Thursday deadline to sign, according to a source familiar with the matter. The Jan. 15 deadline is not an “ultimatum,” the source says; extensions submitted afterward would be evaluated on a case-by-case basis.
The NBA would not be at risk of legal action if it poached Real Madrid, despite the letter EuroLeague sent the NBA last week warning of repercussions if the NBA continued courting teams under contract. That’s because the letter only covered conversations the NBA might have with teams that already signed the 10-year extension, a source close to EuroLeague tells FOS.
Currently, nine teams have extended their licenses to play in the league for an additional decade. Barcelona is expected to become the 10th team, after it informed the league and its teams of its intention to extend.
That leaves Real Madrid, Turkey’s Fenerbahce, and France’s ASVEL—which is owned by former NBA star Tony Parker—as existing EuroLeague teams that have not yet extended. ASVEL could be a candidate to leave EuroLeague, as Parker—who played 18 NBA seasons and won four titles with the Spurs—has not ruled out the possibility of his franchise being part of the NBA’s new project.
Asked generally about EuroLeague’s letter, Silver said he shared it with his lawyers, and that he doesn’t think it’s “inevitable” there will be a “clash” between the two.
A person familiar with the European pro basketball landscape tells FOS that Thursday’s press conference may result in the teams that have not yet extended with EuroLeague deciding to do so. They cited Silver’s comments about initial investment coming from the participating clubs, and the idea of any financial returns being a “long-term” prospect.
They also noted the WNBA parallel is not the best way to convince teams to leave EuroLeague, pointing to its current labor dispute. Player salary has been one sticking point in the WNBA labor talks; under the league’s most recent offer, which the union has not accepted, max salaries could exceed more than $1.3 million and average salaries could exceed $530,000. Currently, the WNBA’s supermax is $249,244.
In EuroLeague, salaries can range, and reach more than $5 million, according to Eurohoops. Silver did not say anything about potential salaries for its planned endeavor.
“The WNBA is not the best comparison to attract them,” the source says.
