By Elvira Pollina and Ruairidh Barlow
MILAN/MADRID, Oct 19 (Reuters) – The Euroleague remains open to talks with the NBA over a potential tie-up in Europe, with CEO Chus Bueno warning that competing leagues would fragment the continent’s basketball market.
The continent’s premier club basketball competition rejected an NBA collaboration proposal at an owners’ meeting held at Italy’s Lake Como on October 6.
With the NBA pressing ahead with plans to launch a new European league in 2027, the prospect of two rival competitions emerging is increasingly coming into focus. Bueno warned of the dangers of further fragmenting the market.
“If they decide to (enter into the market), it’s going to be a disaster. And they know, we know, and we don’t want that,” Bueno told Reuters on Monday.
“We had some conversations after Como. And the position of the owners was very clear. We will always be open to listen, and to talk with the NBA about any potential deal. But it has to make sense for us,” said Bueno.
“The telephone lines are open and, if something has not worked, maybe there’s something that can work in the future,” he added, declining to elaborate on the terms of the NBA Europe proposal.
EXPANSION STRATEGY
The Euroleague currently consists of 13 permanent shareholder clubs but plans to approve up to eight long-term franchise licences as it expands to a 24-club competition.
Bueno said the league will announce the new teams joining the competition in mid-November as part of a multi-year growth strategy unveiled last week.
Under the expansion plan, which includes a shift to a franchise-based model, the collective value of the Euroleague’s licensed clubs is projected to triple to €5.4 billion ($6.06 billion) from an estimated €1.8 billion.
The league itself is expected to rise in value to €7.98 billion from €1.4 billion, or 5.7 times its current estimated value, over the next decade.
Of the current Euroleague licence holders, only 40% are sustainable, but Bueno said that would change going forward.
“I think that in five years with this expansion, we could be in a position where most, if not all, of them will be (financially) sustainable,” he said.
EUROLEAGUE UNITY
Bueno also said he viewed the prospect of Euroleague clubs leaving to join NBA Europe as unlikely, arguing that the risks involved would be too great for the teams concerned.
“I don’t believe this is going to happen. I think that the teams want to be together and act together. And this is what I’m hearing and what we heard in Lake Como from all of them.
“If you are divided, you lose value, and then some third party benefits. One of the things that we don’t want is more fragmentation,” said Bueno, adding that “it will be bad for basketball.”
The 13 shareholder clubs have all signed 10-year franchise agreements tied to the strategic expansion plan.
“If they want to leave, they have a penalty they can pay, and then the clubs can also ask for individual damages. They will lose the €80 million-plus that they have in shares.
“But if they ever want to come back, they will have to pay whatever number it is when they ask to come back,” said Bueno, adding: “So I think that they have a lot to lose if they do (leave).”
($1 = 0.8912 euros)
(Reporting by Ruairidh Barlow in Madrid and Elvira Pollina in MilanEditing by Christian Radnedge)
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