The sales process is being run by JPMorgan and the Raine Group, the latter having helped raise more than £500m in The Hundred sale last summer. NBA Europe's teams will be sold in order of market size, with the London franchise expected to attract the highest bids. Bidders who lose out on their first-choice team will be offered the chance to bid again for other franchises, a tactic that in The Hundred sale led to Todd Boehly and Jonathan Goldstein buying into Trent Rockets.
Manchester, Milan, Paris, Berlin, Munich, Barcelona, Madrid, Athens and Istanbul are among the cities set to host permanent NBA Europe franchises. According to City AM, RedBird, which owns AC Milan, is understood to want to run the Milan NBA team, while QSI, owners of Paris Saint-Germain, has similar ambitions in Paris. City AM also reports that PIF is expected to bid for the London franchise, and Marshall Glickman is part of a bid for the London team.
Barcelona and Real Madrid already have basketball teams and are considered likely to take their place in NBA Europe, according to City AM. Hurdles relating to price and EuroLeague membership must be overcome for Barcelona and Real Madrid to join. The NBA and its advisors have marketed the franchises as being worth $500m to $1bn each, but these valuations have been widely challenged, especially by football club owners who argue they should be compensated for lending their IP and fanbases.
over 100
This week's blind bids are non-binding. NBA commissioner Adam Silver has said that 'over 100' potential investors remained in the running. The NBA has been strict on bidders leaking any information on the process.
According to City AM, one suitor described the requisite NDA as 'gnarly'. Last week bidders were warned against sharing any details amid concerns that they could collude to suppress prices. The league's expansion into Europe represents a significant step in its global growth strategy, with the 16-team competition featuring 12 permanent franchises and four rotating spots.
The bidding process, managed by JPMorgan and the Raine Group, has drawn interest from a wide range of investors, including sovereign wealth funds, private equity firms, and existing sports team owners. The London franchise is seen as the crown jewel, with multiple bidders expected to compete for it. The involvement of high-profile investors like PIF and RedBird underscores the commercial appeal of the league.
However, the ambitious valuations have sparked debate, with some potential investors questioning whether the projected revenues justify the price tags. The NBA's strict confidentiality requirements reflect the high stakes of the process, as the league seeks to maximize franchise values while maintaining control over the narrative. The outcome of the bidding will shape the future of basketball in Europe and could redefine the sports investment landscape.