The Battle for Lombardy: RedBird Pivots to Varese as NBA Europe Takes Shape

The landscape of European basketball is undergoing a seismic shift, and the epicenter of this transformation is currently centered in Lombardy. In a move that redraws the strategic map of the region, Gerry Cardinale and his RedBird Capital Partners have shifted their focus away from the established powerhouse of Olimpia Milano, instead targeting Pallacanestro Varese as the primary vehicle for entry into the ambitious NBA Europe project.

This pivot creates a high-stakes “derby” between two of the most influential investment funds in global sports. While RedBird aligns itself with the historic legacy of Varese, Oaktree—the fund that controls Inter Milan—is in active negotiations to acquire a minority stake in Olimpia Milano. The result is a strategic divide: RedBird is betting on a fresh frontier in the Varese province, effectively leaving the metropolitan hub of Milan open for Oaktree to occupy as the primary anchor for the NBA’s European expansion.

The RedBird Strategy: Why Pallacanestro Varese?

For Gerry Cardinale, the attraction of Pallacanestro Varese lies in both prestige and potential. Varese is not merely a local club; it is a European titan with a trophy cabinet boasting five European Cups, the most of any Italian club. By partnering with the club currently guided by legend Luis Scola, RedBird is not buying a brand from scratch but is instead leveraging a deep-rooted basketball tradition to satisfy the requirements of NBA Commissioner Adam Silver’s vision for a European league.

The strategy is clear: use Varese as the operational hub for NBA Europe while maintaining a footprint in the Lombardy region. However, the physical manifestation of this plan—the arena—remains a point of contention and evolving reports.

According to reports from Malpensa24, RedBird has directly contacted Mauro Vitiello, the president of the Varese Chamber of Commerce, to explore the acquisition of land in the MalpensaFiere area of Busto Arsizio. The goal is the construction of a state-of-the-art 15,000-seat arena. This move would signal a total departure from the city of Milan, prioritizing a strategic location near one of Europe’s busiest airports to attract international attention and investment.

Conversely, other reports suggest a different geographic focus. Some sources indicate that Cardinale is instead looking to utilize the San Francesco area in San Donato Milanese for the 15,000-seat venue. Under this scenario, Pallacanestro Varese would maintain its Serie A home games at the Masnago arena, while utilizing the new San Donato facility specifically for NBA Europe matchups. This would allow RedBird to leverage existing investments in San Donato, where AC Milan has already committed 55 million euros to an area originally intended for a stadium.

Oaktree and the Olimpia Milano Opening

RedBird’s decision to step back from the Milan city center has effectively cleared the path for Oaktree. For the fund managing Inter Milan, the opportunity to enter the basketball market via Olimpia Milano is a logical extension of its sports portfolio. Olimpia, the dominant force in Italian basketball and a cornerstone of the EuroLeague, is currently in talks to sell a minority stake to Oaktree.

This creates a fascinating dynamic where the owners of the city’s two biggest football rivals are now competing for dominance in the basketball arena. While RedBird seeks to build a new ecosystem around Varese, Oaktree is moving to integrate itself into the existing hierarchy of the EuroLeague through the Armani-backed club.

For the global reader, it is important to understand that this is more than a local ownership struggle. Milan is viewed by the NBA as the only “true metropolitan hub” in the region capable of sustaining the commercial demands of a top-tier international league. By pivoting to Varese, RedBird is gambling that a specialized, high-growth project can outperform the established, but crowded, Milanese market.

The Broader War: NBA Europe vs. EuroLeague vs. FIBA

The maneuvering between RedBird and Oaktree is happening against a backdrop of institutional instability in European basketball. Notice currently three competing visions for the future of the sport on the continent:

• NBA Europe: A project led by Adam Silver aimed at expanding the NBA brand and creating a structured European presence, likely utilizing American-style investment models.
• EuroLeague Basketball: The current elite competition, which is working toward a collaboration agreement with the NBA. Olimpia Milano is a key player in these negotiations, seeking a partnership rather than a total takeover.
• FIBA: The global governing body, which is pushing for a league structure that maintains a more traditional international federation model, though reports suggest they are also eyeing a league under American hegemony.

The tension between these entities means that any partnership—whether it be Cardinale’s link to Varese or Oaktree’s link to Olimpia—is subject to the final agreement between the NBA and the EuroLeague. If a comprehensive collaboration is reached, the value of these clubs will skyrocket; if the leagues remain at odds, the investment risk increases significantly.

Key Stakes and Financial Implications

The financial scale of these moves is substantial. The proposed 15,000-seat arena, regardless of whether it lands in Busto Arsizio or San Donato, represents a massive capital expenditure intended to modernize the viewing experience in Italy, which has long lagged behind the NBA in terms of facility infrastructure.

The “San Donato factor” is particularly critical. With 55 million euros already invested by Milan in the area, the land has become a focal point for sports infrastructure. If RedBird successfully pivots this area toward basketball, it transforms San Donato into a multi-sport hub, potentially linking the fortunes of AC Milan and Pallacanestro Varese under a single geographic umbrella.

For Pallacanestro Varese, the partnership with RedBird is a lifeline and a launchpad. While the club possesses the history and the trophies, the financial muscle of an American private equity firm is required to compete in the modern era of professional sports. The involvement of Luis Scola ensures that the project remains rooted in basketball excellence, while Cardinale provides the corporate machinery to scale the operation.

What Happens Next?

The current situation remains fluid. While the “choice” of Varese by Cardinale appears firm, the final blueprints depend on the diplomatic outcome between the NBA and EuroLeague. Industry insiders expect more definitive clarity by the middle of April 2026, as the window for collaboration agreements closes.

If an agreement between the NBA and EuroLeague is finalized, the partnership between RedBird and Varese could be accelerated, potentially rapid-tracking the arena construction and the club’s entry into the new league structure. Conversely, if negotiations stall, the strategy may return to the drawing board.

For now, the basketball world watches Lombardy. The rivalry has moved beyond the court; it is now a battle of funds, arenas, and geopolitical sporting influence.

The next critical checkpoint will be the mid-April updates regarding the NBA-EuroLeague collaboration agreement, which will determine if the RedBird-Varese partnership moves from the negotiation phase to active implementation.

Do you reckon a Varese-based NBA Europe hub can compete with the established power of Milan? Let us know in the comments below.