Milan, Italy – A potential new arena in the San Francesco area of San Donato Milanese could become a landmark for international basketball, fueled by a significant investment from RedBird Capital, the majority owner of Olimpia Milan. The firm, led by Gerry Cardinale, is reportedly preparing a non-binding offer to the NBA for a franchise in NBA Europe, a league slated to launch after the 2028 Los Angeles Olympics.
The ambitious project envisions a state-of-the-art arena with a capacity exceeding 15,000 seats, requiring an estimated investment of €400 million, according to reports. This potential venue would be built on land already acquired by Olimpia Milan, through its subsidiary SportLifeCity, in 2024 for €40 million. Initially, the land was earmarked for a 70,000-seat stadium, a plan that was ultimately shelved when AC Milan and Inter Milan pursued a joint investment in the San Siro stadium.
The move towards establishing an NBA presence in Milan comes as the league actively explores expansion opportunities in Europe. NBA Commissioner Adam Silver has publicly discussed the league’s intention to launch NBA Europe by the 2027/28 season, aiming to tap into the growing popularity of basketball across the continent. The league is carefully considering potential host cities and franchises, with Milan emerging as a strong contender.
But, the financial commitment required to secure a founding franchise in NBA Europe presents a significant hurdle. Entry fees are estimated to range between $250 million and $500 million, a substantial sum when compared to Olimpia Milan’s annual budget of approximately €40 million. This financial disparity raises questions about the feasibility of Olimpia Milan securing a franchise independently.
RedBird Capital, under Cardinale’s leadership, is currently evaluating two primary pathways to bring NBA basketball to Milan. The first involves a direct investment in Olimpia Milan, potentially through a partnership with the current ownership led by Leo Dell’Orco. While there are currently no active negotiations for a full takeover of Olimpia Milan – the Armani Group continues to plan for player renewals, including Armoni Brooks and Zach LeDay – a collaborative arrangement remains a possibility.
The second option entails the autonomous creation of a new club, AC Milan Basketball. This route would necessitate RedBird acquiring an existing Serie A team, as the agreement between the NBA and FIBA requires franchises to participate in national championships. Cardinale’s existing involvement in the NBA project in Las Vegas positions him as a key player in this potential revolution of European basketball.
Recent developments suggest that RedBird’s position may be challenged by Oaktree Capital Management, the owner of Inter Milan. According to reports from Goal.com, Oaktree has overtaken RedBird in the race to secure a Milan-based franchise for NBA Europe. Oaktree’s leader, Howard Marks, has reportedly approved initial steps, leveraging the firm’s “unlimited financial resources” to appeal to the NBA.
Discussions between Oaktree and J.P. Morgan, the bank overseeing the NBA’s financial entry into Europe, have been described as successful. Talks with Olimpia Milano’s management have been “constructive,” with Oaktree’s approach reportedly well-received. While no final agreement has been reached, Oaktree appears inclined to pursue the opportunity, aligning with the NBA’s desire for a financially stable and committed partner.
The rivalry between Inter Milan and AC Milan extends beyond the football pitch, now encompassing a competition to establish a team in NBA Europe. This dynamic adds another layer of intrigue to the unfolding saga, as both clubs vie for the chance to represent Milan in the burgeoning league. The potential for a Milanese derby in NBA Europe is a compelling prospect for fans and the league alike.
Gerry Cardinale’s vision extends beyond simply bringing NBA basketball to Milan; he aims to create a comprehensive entertainment destination. As reported by the Financial Times, Cardinale is also focused on building a new stadium – a modern arena intended to host live events and retail spaces, further solidifying Milan’s position as a hub for international sports and entertainment.
The next steps in this evolving situation remain to be seen. The NBA is expected to announce its initial list of franchises for NBA Europe in the coming months, and the competition between RedBird and Oaktree is likely to intensify. The outcome will not only determine which Milanese club gains a foothold in the league but also shape the future of basketball in Italy and Europe.
Fans and stakeholders will be closely monitoring developments as the NBA Europe project progresses. The potential arrival of a world-class basketball franchise and a state-of-the-art arena could significantly elevate Milan’s status as a global sports destination. The league has not yet confirmed a timeline for franchise announcements, but further updates are expected in the spring of 2026.
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