The NBA is about to make the biggest international expansion bet in American sports history—and it’s betting on Real Madrid to lead the way. The league is in advanced talks to launch NBA Europe, a standalone 12-16 team league targeting a 2027-2028 launch, with franchise fees ranging from $500 million to $1 billion. Real Madrid, the 11-time EuroLeague champion, is reportedly “99% certain” to become one of the 12 founding members.
This isn’t expansion in the traditional sense—the NBA isn’t adding European teams to its existing 30-team league. Instead, it’s creating an entirely new competition that would operate as a separate entity, with the NBA retaining 50% ownership and partnering with FIBA, basketball’s international governing body. If successful, NBA Europe could fundamentally reshape global basketball, challenge the existing EuroLeague structure, and open a massive new revenue stream for the league. If it fails, the NBA will have burned billions, alienated European basketball’s traditional power structure, and demonstrated that American sports franchises can’t simply export their model to markets with fundamentally different fan cultures.
Why Europe? Why Now?
The NBA’s interest in Europe isn’t new, but the timing and scale of this initiative are unprecedented. Commissioner Adam Silver has been discussing European expansion for years, but several factors have aligned to make this the moment:
1. International Talent Explosion
Five of the last seven NBA MVP awards have gone to international players. The league’s current stars include Giannis Antetokounmpo (Greece), Luka Dončić (Slovenia), Nikola Jokić (Serbia), and Victor Wembanyama (France). The pipeline of European talent has never been stronger, and the NBA wants to capitalize on the growing European fanbase.
2. Untapped Commercial Potential
Silver has stated that “the commercial opportunity has not kept pace with the growth of the game” in Europe. Despite basketball’s popularity, European leagues struggle financially. FIBA Europe President Jorge Garbajosa noted that EuroLeague teams “lose an average of 20, 25, or 30 million [euros] a year without any kind of return.”
3. The Soccer Model
The NBA is explicitly modeling NBA Europe after European soccer’s structure—permanent franchises in major cities, with a potential merit-based qualification system for additional teams. Cities being targeted include London, Manchester, Paris, Lyon, Madrid, Barcelona, Rome, Milan, Munich, Berlin, Athens, and Istanbul.
4. Investment Appetite
The NBA has hired JPMorgan Chase and Raine Group to advise on financial and strategic matters. Investment firms including Saudi Arabia’s Public Investment Fund, Lazard, Rothschild, Sixth Street, Blackstone, Arctos, and BC Partners have shown interest.
Real Madrid: The Flagship Franchise
Real Madrid isn’t just another basketball team—it’s the crown jewel of European basketball. The club launched its basketball platform in 1931 and has won a record 11 EuroLeague titles. The team has housed legendary players like Arvydas Sabonis, Dražen Petrović, and Luka Dončić.
FIBA Europe President Jorge Garbajosa confirmed that Real Madrid’s engagement with NBA Europe has progressed to “direct, high-level talks.” The club is considered a highly credible addition to the new league, bringing:
- A massive global fanbase (primarily through its soccer operations)
- World-class basketball infrastructure
- Financial resources to pay franchise fees estimated at $500 million to $1 billion
- A brand that resonates across Europe and Latin America
But Real Madrid’s potential move has created internal conflict. Fan organizations issued a joint statement opposing the switch, citing concerns about losing longstanding EuroLeague rivalries and questioning what NBA Europe would offer in return.
🚨 JUST IN: Real Madrid are set to leave the EuroLeague & will join the ‘NBA Europe’ project as one of the 12 founding clubs.
— Madrid Xtra (@MadridXtra) January 22, 2026
The NBA estimate that the value of ‘NBA Europe’ franchises will be around 1 Billion Dollars in 5-6 years. @COPE pic.twitter.com/0Vs2b0dF1w
Brian Windhorst has expressed his skepticism regarding the NBA Europe project 🗣️
— Eurohoops (@Eurohoopsnet) December 24, 2025
“If you live in Rome, are you going to pay for Netflix to watch Paris vs. Manchester… I wish it was in conjunction with the EuroLeague, it seems like it’s going to be at odds with the EuroLeague.” pic.twitter.com/bvIO39yHeP
The Other Players
Real Madrid isn’t the only major club in discussions. Other teams and organizations reportedly in advanced talks or attending NBA Europe symposiums include:
Existing Basketball Clubs:
- ASVEL (France): Owned by former NBA player Tony Parker
- Fenerbahçe (Turkey): Poised to pay franchise fees
- FC Barcelona (Spain): Extended its EuroLeague agreement but reportedly includes an exit clause
Football Clubs Creating Basketball Teams:
- Manchester City (UK): Attended an NBA Europe symposium
- AC Milan (Italy): Owner RedBird Capital Partners has been linked to a potential Milan franchise
- Inter Milan (Italy): In discussions to form a joint Milan-based franchise with AC Milan
- Bayern Munich (Germany): Attended the symposium despite extending its EuroLeague deal
- Paris Saint-Germain (France): Targeted for a Paris franchise
New Franchises:
- London and Berlin are being considered for entirely new clubs
- Alba Berlin (Germany) is a favorite for the Berlin franchise
The EuroLeague Problem
The NBA’s plans have been met with fierce resistance from the EuroLeague, Europe’s current premier basketball competition. EuroLeague has sent letters to the NBA threatening legal action if the NBA continues to engage with teams under existing contracts. Nine of the EuroLeague’s 13 permanent ‘A’ license clubs have already re-signed for another decade. Real Madrid, ASVEL, and Fenerbahçe were among the clubs facing a deadline to extend their EuroLeague licenses and are considered the most likely to join the NBA’s venture.
These EuroLeague clubs reportedly have exit clauses, estimated to be around $10 million (€10 million), allowing them to opt out and join NBA Europe. But the legal and political battle is just beginning.
Adam Silver has acknowledged the EuroLeague’s legal threats but believes there is “plenty of room for competition” and that the NBA is primarily competing for people’s attention across various entertainment options. He also noted that EuroLeague has been a money-losing proposition for teams. The NBA believes it can lawfully engage with all EuroLeague teams, regardless of their current commitments. FIBA’s collaboration with the NBA on this project contrasts with its long-standing conflict with EuroLeague, adding another layer of complexity to the power struggle.
The Business Model
NBA Europe’s proposed structure includes:
- 12 permanent franchises (similar to the NBA’s closed league model)
- 4 competitive slots that teams could qualify for annually, potentially through FIBA’s Basketball Champions League
- 50% NBA ownership, with the remaining 50% split among franchise owners
- Cost-conscious salary cap to ensure profitability
- No sharing of national TV money with the existing NBA (a key selling point for NBA owners)
The NBA Board of Governors is expected to greenlight the new league at its March session, with owners likely to approve given their projected ownership stake and the financial structure. The league is targeting an October 2027 launch, though some reports suggest a 2027-2028 season start is more realistic.
The Long-Term Vision
NBA Deputy Commissioner Mark Tatum envisions a long-term future where NBA Europe teams could play against NBA teams in preseason tournaments or even join the NBA Cup. The ultimate, long-term vision includes the possibility of a European division within the NBA itself, facilitated by advancements like supersonic travel.
This isn’t just about creating a new league—it’s about building a global basketball ecosystem with the NBA at the center. The league aims to leverage its expertise in media rights deals, attract foreign investment (particularly from the United States and the Middle East), and create a product that can compete with European soccer for attention and revenue.
The Risks
The NBA’s European gamble faces significant challenges:
Cultural Differences: European basketball culture is characterized by fierce fan loyalty, deep-rooted traditions, and a promotion/relegation system that rewards sporting merit. The NBA’s closed franchise model, where teams can’t be relegated and ownership is permanent, clashes with European sports culture.
Logistical Complexity: Scheduling, travel across European countries, ticket pricing, and format all need to be addressed. Unlike the NBA, where teams can fly coast-to-coast in a few hours, European travel involves crossing international borders, multiple time zones, and varying regulations.
Arena Infrastructure: Some markets lack NBA-quality arenas and would require significant infrastructure investment.
Competition with Existing Leagues: The creation of NBA Europe raises questions about the future of EuroLeague, EuroCup, FIBA’s Basketball Champions League, and domestic leagues. If NBA Europe succeeds, it could cannibalize existing competitions and alienate traditional basketball fans.
Financial Uncertainty: Silver has acknowledged that fiscal returns may take decades to appear. This is a long-term investment, and the NBA is prepared for years of losses before the league becomes profitable.
The Verdict
The NBA’s European expansion is the most ambitious international sports venture since the Premier League’s global expansion in the 1990s. If successful, it could create a multi-billion dollar revenue stream, cement the NBA’s position as the world’s premier basketball league, and fundamentally reshape European basketball. Real Madrid’s near-certain participation gives the project instant credibility. The club’s global brand, basketball pedigree, and financial resources make it the ideal flagship franchise. If the NBA can convince Barcelona, Manchester City, and other major clubs to join, NBA Europe could become a legitimate competitor to EuroLeague within a few years.
But the risks are enormous. The NBA is betting that it can export its franchise model to a market with fundamentally different sports culture, overcome legal challenges from EuroLeague, and convince European fans to embrace a new competition that disrupts decades of tradition.
The $1 billion question is whether European basketball fans will accept an American-style closed league, or whether they’ll reject it as a corporate takeover of their sport. Real Madrid’s fanbase is already conflicted. If the NBA can’t win over the fans of its flagship franchise, the entire project could be doomed before it starts. The NBA has set a soft target of October 2027 for launch. By then, we’ll know whether this is a visionary expansion that transforms global basketball, or a billion-dollar miscalculation that proves American sports franchises can’t simply buy their way into European markets. One thing is certain: the NBA isn’t thinking small. This is a decade-long, multi-billion dollar bet on the future of basketball. And Real Madrid is the first chip on the table.
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