NBA Europe: Gerry Cardinale and the High-Stakes Gamble to Redefine Continental Basketball

The landscape of professional basketball in Europe is staring down a seismic shift. For decades, the continent has operated on a promotion-and-relegation ethos, rooted in deep-seated club loyalties and a complex relationship with FIBA. However, the arrival of NBA Europe threatens to disrupt that equilibrium, bringing the American franchise model to the “Old Continent” with the financial weight of RedBird Capital and the commercial machinery of the National Basketball Association behind it.

At the center of this storm is Gerry Cardinale. The founder of RedBird Capital and owner of AC Milan is not merely observing the NBA’s expansion; he is actively positioning himself as a primary architect of its European footprint. For Cardinale, the project represents more than just a sporting venture—it is a strategic play to merge the commercial expertise of the NBA with the passionate, existing sports cultures of Europe’s major metropolitan hubs.

The ambition is staggering. According to reports, the NBA is preparing to launch a league featuring permanent franchises in 10 to 12 European cities. The shortlist of candidates already includes powerhouses like London, Madrid, Paris, and Munich, with Milan emerging as a critical battleground for the league’s identity and structure.

The Milan Crossroads: Acquisition vs. Innovation

In Milan, Cardinale faces what insiders describe as a “strategic crossroads.” The city is already home to Olimpia Milano, one of the most storied and successful basketball clubs in Europe. For a newcomer, the fastest route to legitimacy is often the purchase of established history. Reports suggest the acquisition of Olimpia Milano could cost between €100 million and €150 million.

However, the path to buying Olimpia is fraught with diplomatic hurdles, specifically negotiations with the heirs of Giorgio Armani. If those talks stall, Cardinale has a second, more disruptive option: starting from scratch. The creation of an “AC Milan Basket” team would allow RedBird to build a brand from the ground up, fully integrated with the football club’s existing infrastructure.

This “new club” approach carries significant risk. Starting a franchise from zero risks alienating the local basketball fanbase and creates immediate friction regarding inclusion in national leagues. Yet, the upside is total control. Cardinale already owns the San Donato Milanese site, where a massive 20,000-seat arena and events center could be constructed. Such a venue would provide the NBA-caliber experience—luxury suites, high-end concessions, and state-of-the-art acoustics—that the current European infrastructure often lacks.

Quick Context: In the American NBA model, the arena is often as much a revenue driver as the game itself. By controlling the venue, Cardinale can maximize media deals and sponsorship activations, moving away from the traditional European model of renting municipal gyms.

The Football Synergy: Why Soccer Giants are Entering the Court

One of the most jarring aspects of the NBA Europe plan is the involvement of elite football clubs. The league isn’t just looking for basketball specialists; it is courting the biggest brands in global sports. Real Madrid, Barcelona, Paris Saint-Germain, Bayern Munich, and Manchester City are all mentioned as potential participants.

From a business perspective, this is a masterstroke of risk mitigation. By partnering with football giants, the NBA ensures an immediate, built-in fanbase. A Manchester City or Real Madrid supporter is far more likely to buy a ticket to a basketball game if it carries the crest of their beloved football club. This “multi-sport club” model is common in the U.S. (think the Steinbrenner family or the owners of the New England Patriots/Revolution), and the NBA is attempting to transplant that logic to Europe.

In Milan, this synergy is already being discussed at the highest levels. Reports indicate that AC Milan and Inter Milan have even explored the possibility of forming a joint Milan-based franchise, a move that would mirror the “city-wide” appeal of teams like the New York Knicks or Los Angeles Lakers.

The Blueprint for 2027

The timeline for this expansion is aggressive. NBA Deputy Commissioner Mark Tatum has indicated that the league could officially tip off within two years, with a target start date in 2027. However, this is not a guaranteed launch. The project remains pending approval from both the NBA’s board of governors and FIBA, the international governing body for basketball.

The vision, as articulated by Tatum, is to merge the NBA’s commercial “know-how” with Europe’s growing basketball culture. This doesn’t necessarily mean replacing the EuroLeague, but it does suggest a move toward a more “closed” and sustainable league structure. In the U.S., the closed system—where teams cannot be relegated—provides financial stability that allows owners to invest heavily in infrastructure and player salaries without the existential threat of dropping to a lower division.

For investors like Cardinale, the “closed” model is the primary draw. It increases the valuation of franchises exponentially because the asset is guaranteed a spot in the top-flight competition, making it far more attractive to private equity and global sponsors.

Challenges and the “Tradition” Barrier

Despite the financial momentum, NBA Europe faces a steep climb in terms of cultural acceptance. European sports fans are notoriously protective of their traditions. The idea of a “franchise” replaces the “club,” and the removal of promotion and relegation is often viewed as an Americanization that strips the sport of its drama.

the conflict with existing leagues cannot be ignored. If the NBA creates a parallel league in the same cities as established EuroLeague teams, it creates a war for talent and viewership. The NBA’s success will depend on whether it can coexist with the current ecosystem or if it intends to eventually absorb it.

The tension is palpable in Milan. If Cardinale chooses to start “AC Milan Basket” rather than buying Olimpia, he isn’t just starting a team; he is challenging a century of basketball heritage in the city. The risk of dividing the local fanbase is high, but the potential reward—a dominant, vertically integrated sports empire in the heart of Italy—is higher.

Key Strategic Pillars of NBA Europe

What This Means for the Global Game

The move toward NBA Europe is the logical conclusion of the NBA’s global strategy. For years, the league has exported its brand through the NBA Global Games and the rise of international superstars like Nikola Jokić and Luka Dončić. Now, the league is moving from exporting a product to establishing a permanent physical presence.

If successful, this will create a pipeline of talent and revenue that could dwarf anything seen in the sport previously. A European league operated with NBA efficiency would likely attract more American talent during the off-season and provide a professionalized environment for European prospects to develop before making the jump to the U.S. League.

For Gerry Cardinale, the stakes are personal and professional. He is betting that the future of European sport lies in the American model of sustainability and brand scaling. By positioning RedBird Capital at the forefront of this expansion, he is not just buying into a league—he is attempting to rewrite the rules of how sports are owned and operated in Europe.

The Next Checkpoint

The industry is now waiting on two critical developments: the formal approval from FIBA and the final decision from Cardinale regarding the Olimpia Milano acquisition. If the San Donato site begins development for a 20,000-seat arena, it will be the clearest signal yet that the NBA’s European dream is moving from the boardroom to the blueprint.

Do you think the American franchise model will work in Europe, or will tradition win out? Let us know in the comments below.