NBA and FIBA officials confirmed their ongoing commitment to building a new professional European basketball league on Thursday, October 8, outlining a partnership with Euroleague Basketball as their preferred path forward just two days after Euroleague club shareholders rejected their formal proposal, as reported by Espn.
The Shareholder Assembly Rejection at Cernobbio
The refusal took place on Tuesday, October 6, during a meeting of Euroleague club shareholders in Cernobbio. According to reporting from ANSA, the proposal was deemed unacceptable on both economic grounds—with the financial terms judged too low—and regarding league governance. A club executive who attended the three-hour meeting described the proposal as “colonialist.” Despite the setback, the talks remain active, and the Euroleague did not reach a final vote on expanding from 20 to 24 teams or introducing permanent franchises, with a final recommendation expected in the coming weeks.
Euroleague Clubs Convert Licenses into Franchise Slots
In a joint statement released after their assembly, the 13 Euroleague shareholder clubs did not mention the NBA by name, but agreed to begin converting 10-year licenses into franchise slots while advancing expansion plans, as noted by Eurohoops. ESPN reported that the formal proposal had been submitted the previous month following nearly two years of project development, and multiple Euroleague clubs held deep discussions with the NBA. FC Barcelona indicated a willingness, alongside Euroleague leadership, to evaluate a modified proposal.
Financial Projections and Division Sustainability
At the end of August, the Euroleague Commercial Assets Board of Shareholders highlighted 11 pre-accepted proposals undergoing due diligence, featuring binding offers for nearly 700 million euros in franchise fees and over 3.2 billion euros in aggregated investments over five years, according to Euroleague Basketball. Italian clubs Virtus Bologna, Napoli Basketball, and Maxima Roma were among those in the running. Projections from JB Capital cited in the league’s note suggest the valuation of the league and its clubs could reach 4.3 billion euros by 2027.
Financial sustainability remains a central concern. Ahead of the shareholder assembly, Reuters reported that Real Madrid’s basketball division posted net losses in every season since 2021–22, while FC Barcelona recorded cumulative losses over the past three years. Economist Ivan Cabeza told Reuters that the existing Euroleague model is unsustainable, questioning how an enterprise that has consistently operated at a loss could undergo a radical transformation. “I find it really hard to imagine,” Cabeza said, “how an organization like the Euroleague, which has been, is, and most likely will continue to be a losing enterprise, can undergo a radical change.”
Timeline of Upcoming Governance Decisions
Euroleague club leadership is scheduled to review final recommendations regarding the 20-to-24-team expansion and franchise conversion framework in the coming weeks.
