Europe’s Pain, Global Gain: Winners & Losers

by Grace Chen

La Liga President Sounds alarm Over Proposed “NBA Europe” League, Threat to European Basketball

A new transatlantic battle is brewing in the world of professional basketball, with concerns mounting over the potential impact of a proposed “NBA Europe” league on the existing European sports ecosystem. The president of Spain’s La Liga, Javier Tebas, publicly criticized the project this week, drawing parallels to the controversial super League proposal that threatened european football in 2021.

“It turns out that the second most popular sport in Europe – basketball – is also creating a Super League equivalent, similar to the one that threatened European football in 2021,” Tebas stated during a football conference. “This runs counter to the European sports model.”

The concerns are echoed in a recently released report by the Applied Economics Institute in Spain, which analyzes the potential ramifications of the “NBA Europe” project. The proposed league would feature 16 teams – 12 permanent members and four rotating teams persistent by performance in domestic leagues and the FIBA Champions League.

According to reports, European basketball powerhouses Real Madrid, Barcelona, Bayern Munich, and ASVEL Villeurbanne are considering a move to the new league, currently slated to launch in 2027, though that date remains tentative.

Economic Concerns and the Risk of Value Extraction

The Applied Economics Institute report warns of meaningful economic risks, particularly the potential for profit repatriation outside of the European Union. “From a fiscal perspective,this creates a risk of profit stripping: much of the value created by European basketball would be appropriated by structures located outside the EU,” the report states. “Europe would bear the burden of infrastructure, talent, fan base, and tax costs, while a considerable portion of the return would leave this economic circuit.”

These concerns align with a resolution passed by the European Parliament over a month ago, which urged resistance to projects like “NBA Europe.” The newly released analysis provides further support for that stance.

EuroLeague as a Viable Choice

The report contrasts the proposed “NBA Europe” model with the existing EuroLeague, highlighting the potential negative consequences of the former.The report argues that the “NBA Europe” model, or their attempt to prioritize such a championship (‘NBA europe’) would reduce the value of television broadcasts, match attendance, and sponsor visibility. In short,it would compromise the entire remaining sports ecosystem.”

A Threat to the European Sports Model

The report argues that the “centrifugal principle” embodied by “NBA europe” fundamentally clashes with the European sports model, which is based on open access, sporting merit, and financial solidarity.”as the European Parliament notes in its resolution, the public character of sport must be protected from purely commercial models designed to maximize profits for a few participants. the logic of the football Super League in basketball would fragment the environment and weaken the authority of European regulatory bodies.”

Despite its own challenges – including a lack of democratic decision-making and the economic instability of some clubs – the EuroLeague model allows value to remain within Europe and be distributed among a wider range of stakeholders. In contrast, the “NBA Europe” model would concentrate profits in foreign corporations, while the current system encourages reinvestment in intangible benefits like social base, customer loyalty, and shared values.

Currently, the EuroLeague is experiencing a period of growth, with increasing viewership, revenue, and fan engagement. “In this regard, the EuroLeague is growing steadily – its total profit has increased by 45% over the past two seasons, and television viewership has increased by 30% over the past five years. At the same time, club-generated revenue has increased by 53% over the past three years. This growth has been driven by increased revenue on match days, such as ticket sales, food and accommodation services, and sponsor contributions, which are directly controlled by the clubs themselves. All this value is created around the EuroLeague and allows the entire European sport to expand dynamically.”

Modern sports policy, the report concludes, requires not only attracting foreign investment but also ensuring that it generates additional benefits. As the economic literature on cultural and sports industries reminds us, the sustainability of a system depends on its ability to reconcile profitability with the local community’s resistance to change. In this sense, the EuroLeague model can be reformed and modernized, but its logic and roots in European sport must be preserved.

Leave a Comment