NBA plans to pour more than $3bn into a new European basketball league, aiming to quell owner concerns about delayed profits. After a soft deadline in March, the league drew over 120 expressions of interest, including big names like Blackstone and RedBird Capital Partners. Investors pushed back on the financial model, citing weak revenue projections.

To address doubts, the NBA offered guaranteed annual payments and higher prize money for each of the 12 permanent teams. The deal also earmarks funds for marketing, operations and initial losses, letting clubs avoid extra capital outlays during launch. Funding will stem from franchise sales, a model familiar to U.S. sports and in Europe today.

Under the structure, NBA and FIBA will own 52% initially, with teams holding 48%. Over time, their stake will dilute as new clubs join. The league blends a U.S.-style franchise system with Europe’s promotion‑relegation play, keeping first‑tier teams safe while opening slots for up‑and‑coming sides each season. This model aims to attract investors and ensure competitiveness.

More than 20 clubs, including EuroLeague teams, have joined the bidding process. Final selections will need approval from the NBA Board of Governors and FIBA’s ratification. If approved, the league could reshape European basketball by offering financial certainty and a clear pathway for clubs to compete at the highest level without the risk of relegation.