A group of high-powered investors is looking to raise billions of dollars to establish a new international basketball league, as reported by individuals familiar with the situation. Sources indicate that this new venture would offer players an opportunity to obtain equity in the league. The investors’ ambitious goal is to secure $5 billion in funding for this league, positioning it as a potential competitor to the NBA by providing lucrative financial incentives to players, akin to the successful recruitment tactics employed by LIV Golf in attracting PGA Tour players.
The specific players that the league aims to target and its prospective launch date remain uncertain at this stage. Notably, Maverick Carter, a close associate of basketball icon LeBron James and his business partner, is reportedly advising a consortium that includes Jason Stein and Daniel Haimovic from investment firm SC Holdings, Geoff Prentice, a co-founder of Skype, and former Facebook executive Grady Burnett. A representative for LeBron James clarified that the NBA star is not directly involved in this initiative and declined to comment on any potential outreach from the organizers.
To facilitate the fundraising efforts, the investor group has enlisted the services of UBS and Evercore. The capital infusion is anticipated to come from a diverse array of sources such as sovereign wealth funds, institutional investors, and affluent individuals. The proposed league is slated to host games in eight different cities globally, with each city hosting the league for a two-week period, drawing inspiration from the successful model pioneered by Formula 1. The league is planned to feature a total of 12 teams, evenly split between men’s and women’s divisions.
Among the cities identified as potential game locations, sources suggest that Singapore is a confirmed venue, while the remaining seven markets are yet to be disclosed. Despite the significant implications of this initiative for the basketball landscape, representatives from the NBA have not provided immediate feedback in response to inquiries. However, a reliable source familiar with the matter mentioned that there was no prior knowledge of the league’s formation prior to the public dissemination of these reports on Wednesday. Initial coverage of this development was first published by Bloomberg.
In recent years, the NBA has strategically expanded its global footprint, establishing a league in Africa and conducting games in various international destinations such as China, the UAE, Mexico City, and Paris. Notably, the league witnessed a notable surge in international player participation, with a record-breaking 125 international athletes commencing the 2024 season.
For more news updates, visit CNBC’s latest reports:
– Bank of America surpasses expectations with strong performance in investment banking and interest income
– Nintendo unveils highly anticipated Switch 2 console set for launch later this year
– Brooklyn startup secures $10 million in funding to support open-source developers in receiving compensation for their contributions.
