European and global league possibilities

[Crow]

Just looked up Real Madrid. Owned by 100,000 people. Just announced proposal to split the organization and take on a minority owner for first time, subject to a team vote. Set at 5% "of the business", with option to buy back at any time, Current members board to retain total control of football.

5% of a $6 billion valuation is $300 million.

Is this going to be approved and work as desired?

Are they going to raise / spend $500 million- $1 billion to join NBA Europe? Or use it on football? Or hold as assets? Or distribute? All of it appears to be not enough. No mention I see of basketball in the announcement.


Barca also club owned and considered worth $6 billion but $1.5 billion in debt with just a $2 million operating profit reported this season. Owes $150 million in back payments on past transfer and a similar amount of current payments? After several really bad losses and a partial sale of their next 25 years of media revenue to private equity to stay afloat? And made several other future assets sales. The full description of their financial situation is dizzying and quite worrisome. Spending about $1.5 billion on a stadium and not done yet.


Manchester United almost 900 million pounds in debt. Losses of over 300 million in 3 years? Owner pulled more than 1 billion out of the business?

NBA Europe franchise fee seems unlikely even for these "richest". Maybe that is why they say nothing to the curent proposal?

I had expected that only a few Euroleague teams at most would meet the conditions to join but now lean toward none. New teams / new owners everywhere? Or... new plan or no plan?


If the whole project fails, is that the impetus to finally get expansion? That isn't the plan... is it? But maybe the result?


A couple of weeks ago, the NBA officials said to expect significant development in December. A couple of days ago, they said 60 days.

[Crow]

Who approves franchise sales and the criteria will be another element.

Time to unlock? It is possible that someone might buy in and try a relatively quick flip.

NBA will want control and rules but how much pushback will they get on that or anything?


How can you auction franchises unless everything is spelt out? If ready to go, it would seem to be all NBA determined or only concessions deemed essential to proceed or not that inportant.

[Crow]

Virtus Roma, spiral down in performance, trouble paying for games in large arena, self-regulated down to 2nd division Italian league, bankrupt and out in 2020.

Wants back in.

Seems unlikely to be them.

That is a prized market?

[Crow]

Questions raised at European Parliament:

https://basketnews.com/news-236027-nba- ... e-bcl.html

[Crow]

Refereeing could be a debated topic, after the league is real. Source of staff, training and management, pay level.

[Crow]

Slow roll out has given lots of time for others to get agitated and perhaps act.

Perhaps inevitable, expected. Can't really evaluate actual to another version, except in mind.

[Crow]

Unconfirmed media reports:

"Barcelona is set to sign a new ten-year deal with the EuroLeague..."

"Fenerbahce is ready to follow the same path..."

[Crow]

If 0 to a few Euroleague teams join NBA Europe, it probably will affect interest level of newcomers some or impact what they are willing to pay to join.

It will be interesting to see if certain teams are willing to break away from their country neighbor / rival.



I now see 'everybody might play in BCL' as a potential strategy if there really are few if any NBA Europe teams with an existing local league and uncertainity about likelihood of being able to join, operating in existing franchise cities. But I don't know schedule details or willingness to change.

[Crow]

Will the majority of heads of basketball operations come from Europe or US? Choice of owners but will NBA encourage one or the other?

Heads of basketball operations do not necesary have to be chief executives.



Groups may be wary to join without concrete salary cap rules, not wanting to pay to compete against pockets deeper than they own inclination.

[Crow]

Scenario:

No Euroleague teams commit to joining / paying pre-exemptive of bidding process.

NBA precede with bidding in all targeted cities?

Who bids to go into Barcelona or Madrid against the local ongoing teams? How much? Greece or Turkey? Other cities probably not as big an issue with competition but plenty of doubts about the markets.

[Crow]

Euroleague claims NBA is being vague, not really negotiating.

One option, if can get group to agree would be to say: final offer for deep and full league to league negotiations now or see ya in 2029.