By Ruairidh Barlow
MADRID, Oct 5 (Reuters) - Euroleague shareholder clubs are unlikely to embrace radical change when they meet this week to consider a 10-year strategic plan, experts said on Monday, in a pivotal week for the sport across the continent with the NBA looking to move in.
Representatives from the 13 permanent Euroleague teams were due in Lake Como on Monday night with a vote on Tuesday on a fundamental ownership shift that would transform those shareholders into franchises and expand the competition
from 20 teams to 24.
The Euroleague will also evaluate the 14 bids they have received for additional long-term franchise spots, with a maximum of eight to be awarded by ballot.
The proposals from the Euroleague are aimed at sustainability and accelerating long-term growth but sceptics remain.
"I don't think it really changes what it's on the table today for the 13 shareholders," Lega Basket Serie A President Maurizio Gherardini told Reuters.
The strategic plan aims for an aggregate value of the competition and its clubs of €4.3 billion ($4,82 billion) by 2027 and said in a statement on August 25 that projected year-on-year revenue growth had risen to 15% as a result of fresh commercial deals.
Despite the positive projections, Real Madrid budgets show net losses in the basketball division each year since the 2021-22 season. Counterparts Barcelona have posted overall net losses for the past three years, and economist Ivan Cabeza told Reuters that the wider Euroleague model was not sustainable.
"I find it very hard to see how a business like the Euroleague which has been, is, and very likely will continue to be a money-losing venture, could undergo a radical change," Cabeza said.
This could make the NBA Europe project appealing to clubs primarily focused on football, with the North American league widely expected to launch in 2027 - with or without Euroleague's cooperation.
The Athletic reported last week that NBA Europe managing director George Aivazoglou and NBA deputy commissioner Mark Tatum held discussions with Paris St Germain, AC Milan and the Spanish duo about becoming member franchises.
Media reports said the NBA have submitted a proposal to the Euroleague, which last Friday confirmed to Reuters that talks were ongoing between the two.
"If someone came along and said, 'Look, I’ll give you €800 million ($896,88 million) to take over the franchise so you never lose money again', that’s obviously an attractive proposition," said Cabeza, posing a hypothetical for Barcelona and Real Madrid.
"It’s appealing because it solves part of your overall debt problem, stops the financial bleeding, and allows you to keep the brand name associated with a partner."
Aivazoglou is poised to give an update on their 16-team competition on Thursday in London. Both the NBA and the Euroleague have confirmed they will forge ahead with their own plans for the 2027-28 season if no agreement is found.
($1 = 0.8920 euros)
(Reporting by Ruairidh Barlow, additional reporting by Amy TenneryEditing by Christian Radnedge)
