Private equity interest is mounting as the NBA prepares to launch a European basketball league, with franchise valuations expected to start at $500m and potentially exceed that figure in key markets such as London and Paris.

The NBA plans to retain a 50% equity stake in the league, offering the remaining ownership to franchise investors. Crucially, the league is targeting new backers from outside its existing ecosystem, paving the way for private equity firms, sovereign wealth funds, and institutional capital to enter the arena.

The European expansion forms part of the NBA’s strategy to unlock the commercial potential of overseas markets. The league believes Europe and the Middle East could generate up to $3bn in annual revenue. NBA Commissioner Adam Silver confirmed earlier this year that extensive talks had taken place with FIBA, media groups, sponsors, and leading clubs to shape the new league.

The structure of the competition is expected to be semi-open, allowing top-performing EuroLeague teams to compete for up to four rotating spots among the eight to ten NBA-backed franchises.

While the project has garnered investor enthusiasm, it has drawn criticism from Euroleague Basketball CEO Paulius Motiejunas, who warned of the risk of market fragmentation and audience confusion if multiple rival leagues emerge.

The NBA’s European league may soon face competition from another proposed international tournament backed by Saudi Arabia’s Public Investment Fund, Singapore’s government, and Galaxy Entertainment. That rival venture is reportedly seeking $5bn from private capital and has enlisted LeBron James’s business partner, Maverick Carter, as an adviser.

As the global basketball market heats up, private equity is rapidly emerging as a key player in reshaping the sport’s commercial landscape.