The NBA is actively exploring investment opportunities in European basketball. Deputy Commissioner Mark Tatum announced ongoing discussions with FIBA regarding potential investments that could enhance the sport’s presence in Europe, according to AFP, via Barron’s.
Tatum described this as an “untapped opportunity” for the NBA to grow the game. He highlighted the significance of collaborating with FIBA and European partners to maximize basketball’s potential.
“There’s no doubt that I think there is an opportunity for the game of basketball to continue to grow in Europe,” Tatum stated during a conference call with international media.
He emphasized that conversations about investment are still in the preliminary stages. Tatum underscored the need to develop a viable operating model for European basketball.
Tatum’s comments align with NBA Commissioner Adam Silver’s remarks made earlier in August. Silver expressed interest in the possibility of establishing an NBA league in Europe.
He noted that the NBA could take inspiration from its successful Basketball Africa League (BAL), launched in partnership with FIBA in 2019. Tatum believes a similar approach could be beneficial for European basketball.
“As you know, we started a league in Africa with FIBA; the BAL is in partnership with FIBA,” he mentioned. Tatum indicated that such a model could help elevate the sport’s profile in Europe.
Despite basketball’s popularity in the region, Tatum pointed out that the sport holds “less than a 1 percent share of the commercial market.” This statistic reinforces the belief that a better model could improve European basketball’s commercial viability.
Tatum reiterated that there is currently no specific timeline for any potential investment or league. “There’s no time frame on it. There’s no specifics to discuss today,” he said, emphasizing the exploratory nature of the discussions.
The NBA’s interest in Europe comes amid financial challenges facing several top European teams. Reports suggest that some teams are dissatisfied with the current economic structure and see the NBA’s involvement as a potential solution.
The NBA is also considering potential investments from Gulf states to support its European venture. This financial backing could provide the necessary resources to develop a sustainable league model.
Tatum noted the importance of not disrupting the existing basketball infrastructure. Silver emphasized that any expansion must be collaborative and respectful of current competitions.
“Where we are in terms of the level of interest in basketball is not commensurate with the level of commercial activities,” Silver explained. He highlighted the necessity for a financially viable and sustainable model for any new venture.
The NBA has engaged The Raine Group, a financial advisory firm, to explore opportunities in the European basketball market. Their insights will guide the NBA in crafting a strategy that aligns with the region’s growing interest in the sport.
