Former EuroLeague CEO Jordi Bertomeu has raised questions about whether the reported franchise valuations for NBA Europe realistically reflect the current European basketball market.
Bertomeu, who led the EuroLeague for two decades, discussed the proposed competition during an interview with the European Basketball Advisory Group. While he believes European basketball remains undervalued overall, he is skeptical about reported NBA Europe franchise fees ranging from $500 million to $1 billion.
“In my opinion, valuations at the level you mention do not correspond to the reality of basketball in Europe. If it were feasible, the first consequence would be an almost general replacement of the current owners of the clubs by new owners, the investors. It is obvious that the current clubs do not have the capacity to assume those valuations. And it remains to be seen whether football clubs are willing to make investments of this level for the basketball sections.
“If the answer is that the investment will be profitable in the very long term, we must remember that sport is very dynamic and the sports industry also changes easily, so making forecasts for such a long period involves a lot of unpredictability.”
Reports that bids worth as much as $1 billion have already emerged could ultimately challenge Bertomeu’s assessment, but he believes such enormous investments carry considerable uncertainty.
The former EuroLeague executive also addressed the difficulty of expanding basketball into major European markets where the sport has yet to establish a strong club presence, particularly the United Kingdom.
“The EuroLeague has always had the clear idea that basketball should go beyond the traditional markets. Even though we were unsuccessful, we must remember that in the first two seasons we had a team in London. Later, we incorporated Turkey into the group of top-tier markets, and shortly after, I went to invite Bayern Munich before they were promoted to the German first division. France always had tradition, although without sports results at the club level.
“But I agree with the analysis. Progress has been made in France and Germany, but not in the UK. Nor in the Scandinavian countries. And Italy does not have the weight it always had in European basketball.”
Bertomeu believes Britain presents a particularly difficult challenge because of its crowded sports and entertainment market, meaning basketball would require a specifically designed long-term strategy.
“The causes depend on each country, but it is clear that the UK is a very saturated market and requires an ad hoc strategy, with a clear vision in the medium and long term, and an action and investment plan that places EuroLeague within the entertainment offer for the British. The fact that there is no relevant local competition undoubtedly adds difficulty. A joint strategy could be something to consider.”
He also pointed to major football organizations as potentially valuable partners for basketball expansion, citing successful examples in Germany and Turkey.
“It is obvious that the most powerful brands in sports benefit basketball when we manage to incorporate them. Bayern Munich is a clear example of how it helps the growth of basketball in Germany, as Fenerbahçe did in Turkey previously. Replicating this model in the UK was tried years ago, but we were unlucky. It is the brand, its huge social base that transcends its natural territory, and the diversity it brings. In short, there are many benefits to this partnership.”
