The NBA is moving closer to launching NBA Europe, with final bids for franchise ownership submitted this week and the league revealing key details of its financial and ownership structure.
According to industry sources, NBA Europe is scheduled to begin operations in October 2027 with 12 permanent franchises and four additional clubs qualifying through existing FIBA competitions.
The league will operate under a hybrid business model that combines features of North American sports with elements commonly found in European football.
At launch, ownership of NBA Europe will be divided equally, with 50% controlled by the NBA and its existing owners, while the remaining 50% will belong to the owners of the twelve founding franchises.
Unlike many traditional expansion projects, franchise owners are expected to be shielded from early financial losses. The NBA reportedly plans to finance the league’s initial operating deficits, allowing clubs to avoid additional capital injections during the start-up phase.
Revenue distribution will heavily favor participating clubs. More than 80% of central league income is expected to flow directly back to teams through a combination of fixed annual payments and performance-based rewards linked to sporting success.
Sources indicate that NBA Europe intends to distribute over $1.5 billion to clubs during its first six seasons through guaranteed allocations and competitive incentives.
The commercial framework also differs from the current NBA system. Teams are expected to retain the majority of ticketing income, negotiate local media agreements and secure their own jersey sponsorship deals—rights that are centrally controlled in the NBA through its league-wide partnership with Nike.
League-wide revenues will include broadcasting agreements, sponsorship packages, merchandising and licensing opportunities. Once NBA Europe reaches profitability, net earnings will be distributed according to the ownership structure in place at that time.
Interest in the project has been significant, with sovereign wealth funds, private equity firms, football clubs and billionaire investors all participating in the bidding process.
The proposed footprint includes major markets such as London, Paris, Madrid, Barcelona, Milan, Rome, Munich, Berlin, Istanbul, Athens, Manchester and Lyon.
Several bids for franchises in London and Paris are reportedly valued at more than $1 billion, highlighting investor confidence in the commercial potential of professional basketball across Europe.
Arena development has also become a central consideration in the bidding process, with many prospective owners expected to renovate existing venues or construct new state-of-the-art facilities to meet NBA standards.
The league is aiming to announce successful ownership groups gradually over the coming weeks, marking another major step toward what could become the most ambitious basketball expansion project ever undertaken outside North America.