Over a dinner in the Mayfair section of London, roughly 20 executives sat around a square table and discussed the state of certain sports. The company was a smart mix of investors, bankers, attorneys and properties — about three-quarters based in Europe and the rest from the U.S., who had come for Leaders Week London. As we started going through topics, a London-based executive politely, but firmly, asked: “Can anyone — anyone — explain the need for NBA Europe to us?”
That started a theme that filled my conversations in London, and showed a healthy geographic rivalry. Europeans strongly questioned the need for NBA Europe and the league’s approach, while most North Americans understood and defended the NBA’s vision and strategy. So, let me share the tone of the discussion, from the European point of view and the rebuttals.
TALENT: Where will the players come from? Why will it be better than or different from the EuroLeague? In a star-driven sport, are there enough to draw in new fans?
RESPONSE: At launch, the talent will come from European players, fringe NBA players and those at the end of their careers. But the bet is that with greater investment in the sport, there will be resources put into grassroots and academy development, which will significantly accelerate the talent pipeline.
THESE AREN’T NBA-READY VENUES: There is understandable concern that the quality of venues across Europe isn’t up to NBA standards.
RESPONSE: Yes, in the short term, the venues aren’t where they need to be. But as part of a group’s ownership bid, it must include plans for infrastructure, whether a renovation or a new build. There won’t be 12 NBA-standard arenas at launch, but that will improve over time.
WHY WILL FANS CARE? The most impassioned point was that there is little reason for fans to care about NBA Europe, which will lack identity, culture and affinity. There is loyalty to EuroLeague clubs, and the concern is that a competing brand will be an obstacle in growing the fan base.
RESPONSE: The NBA is talking to soccer clubs — some with EuroLeague teams — that are globally known brands with deep fan bases. There will be a mix of clubs with strong followings and others with new IP starting from scratch, which offers a lot of creative opportunities.
THE MARKETS: Europeans argued a pan-European strategy is misguided, as the most rabid basketball fans are not in the large economic centers but instead in Greece, Serbia and Turkey. They also felt stats around the popularity of basketball have been inflated.
RESPONSE: The bet is on growing the game, bringing basketball to more fans across Europe that don’t have access to top-tier basketball, like London, Paris, Milan, Rome, Berlin and others. The belief is that you can grow affinity in these markets and grow the entire pie.
Everyone was curious about the timeline, with the launch scheduled for a year from now, but I don’t believe anyone is clear on what that will truly look like. Negotiations with EuroLeague, which have been well-documented, are ongoing, but the NBA will move forward whether there is a deal or not.
So, where are we? The NBA strongly believes basketball in Europe is undervalued and hasn’t reached its potential. It doesn’t believe EuroLeague can grow the game or the business. It wants to push basketball forward with significant investment and resources. It wants a clean, competitive structure that will make it easier for fans to follow and for wealthy investors to get behind. At Leaders Week London, George Aivazoglou, NBA managing director of Europe, earned credit from a standing-room audience for his approach, coming across as even-keeled and diplomatic. He noted Europe’s strong pipeline of talent and “hardcore fans,” but focused on growing the number of casual and new fans. His money line, delivered sincerely, was: “This cannot work if it is forced or feels like a foreign concept.” Clip and save that one.
One top European executive pressed me, “Have you heard the word ‘fans’ mentioned often? I haven’t heard one fan tell me they want NBA Europe.” Hyperbole? Perhaps. But it exemplifies the challenge in front of the NBA. Of course, the league sees a pathway to building a profitable, better-run business, and yes, it is able to recruit new investors who can’t afford an NBA team. But league officials should start every conversation around the fan and the belief that this will drive interest in basketball, and be better for the fan. It can’t always start around building a profitable business.
The NBA knows it can’t be seen as stomping on the basketball traditions of Europe but instead preserving and enhancing the product and experience. The bottom line is it wants to bring the game to more fans across Europe who don’t have access to it. Convincing Europeans that is a smart strategy in which everyone wins remains the challenge.
Abraham Madkour can be reached at amadkour@sportsbusinessjournal.com.
