Euroleague keeps the door open to negotiate with the NBA

The CEO of the Euroleague, Chus Bueno, reaffirmed that discussions with the NBA remain viable despite the rejection from club owners of a collaboration proposal presented during the meeting on October 6 at Lake Como. In statements to Reuters, Bueno indicated that any future agreement must protect the interests of the European competition, but he also acknowledged that there are other negotiation avenues still to be explored.

Ongoing dialogue with the NBA

After the Como summit, discussions have continued discreetly. Bueno explained that the shareholders' position was unequivocal: the willingness to listen to proposals is real, but these must be beneficial to the Euroleague. “We had some discussions after the meeting in Como. The owners' stance was very clear: we are always willing to listen and to talk to the NBA about any potential agreement, but it must make sense for us,” said the executive.

The head of the European competition preferred not to reveal the specific terms of the rejected proposal but made one fundamental reality clear: if one formula didn’t work, another might in the future. “The lines of communication remain open; if something hasn’t worked, perhaps there is another formula that could work in the future,” Bueno assured, thus leaving a door open for future negotiations.

Risks of market fragmentation

The NBA’s threat to create a European league in 2027 has generated concern within the Euroleague. Bueno strongly warned about the dangers of a fragmented competition in European basketball. According to his analysis, the coexistence of rival leagues would not only weaken the market but would also benefit third parties at the cost of losing collective value.

“If they decide to enter the market, it would be a disaster. They know it, we know it, and it’s something we don’t want. Fragmentation leads to a loss of value, from which a third party would ultimately benefit. What we want the least is further fragmentation,” the CEO clearly expressed. This warning reflects the real concern of the Euroleague regarding the NBA's expansion plans into European territory, which could divide resources, audiences, and sponsorships.

Economic impact of competition

Bueno’s analysis emphasizes that direct competition would irreversibly fragment the European basketball market. The loss of value would affect not only the Euroleague but also all stakeholders in the professional basketball ecosystem in Europe. This scenario is precisely what both organizations wish to avoid, although for evidently different reasons.

Expansion of the Euroleague to 24 teams

While negotiating with the NBA, the Euroleague is advancing its own growth strategy. The competition is working on an expansion that would bring the number of teams up to 24, an operation that would include up to eight new long-term franchise licenses. The new participants are expected to be announced in mid-November, a move that reinforces the Euroleague's position as a solid alternative in European basketball.

This expansion responds to a concerning financial reality: currently, only 40% of the license holders in the Euroleague are financially sustainable. Bueno is confident that this growth strategy will significantly change this situation. “I believe that, in five years, thanks to this expansion, we could reach a situation where most —if not all— of the clubs are financially sustainable,” he said optimistically.

Binding ten-year agreements

The 13 shareholder clubs of the Euroleague have signed franchise agreements with a duration of 10 years, directly linked to this expansion plan. This measure aims to ensure stability and long-term commitment. Bueno considers it unlikely that any of these clubs would decide to leave, especially when they understand the economic consequences that such a decision would entail.

Economic penalties for departures

The executive was explicit about the costs of a potential exit. Any club that decided to leave the Euroleague would face an economic penalty, in addition to the possibility of other shareholders claiming compensation for damages. But perhaps the most significant aspect is that they would lose their equity stake, valued at over 80 million euros, a figure that underscores the financial commitment of the clubs to the project.

“If they decide to leave, they will have to pay a penalty, along with the possibility that the other clubs will claim compensation for damages. Additionally, they would lose their equity stake, valued at over 80 million euros,” Bueno explained. Even if any club wanted to return in the future, they would have to pay an additional amount determined at the time of their reapplication.

This incentive structure strongly discourages any departures and reinforces the commitment of the shareholders to the Euroleague. The combination of penalties, potential compensations, and the loss of equity stake creates a scenario where remaining in the competition is clearly the most profitable long-term option.

The position of the Euroleague towards the NBA reflects a balanced strategy: keeping the door open for dialogue while strengthening internally through expansion and the financial consolidation of its clubs. Bueno has made it clear that the European competition does not fear competition, but prefers collaboration if it can be conducted under terms that safeguard its fundamental interests.

This is an automatic translation. You can read the original news, Euroliga mantiene puertas abiertas a negociar con NBA