The EuroLeague has unveiled an ambitious plan to be implemented over the next ten years. The league announced this following a meeting of its owners in early October.
Following a meeting of EuroLeague owners at Lake Como to discuss NBA Europe, a new strategy for increasing revenue has now been presented. Under this plan, €3.4 billion is to be distributed to the teams over a ten-year period – the sum comprises revenue (€2.2 billion) and franchise fees (€1.2 billion). By way of comparison: according to Eurohoops, the clubs currently receive around 70 million each per year.
However, this is only part of the ambitious plan. The aim is for the league to reach a total value of 13 billion euros within the next decade and to generate annual revenue of 650 million euros. This will be accompanied not only by further expansion of the league but also by a transition to a franchise system and, possibly, stricter enforcement of financial fair play rules. The expansion or construction of new arenas is also part of this plan. According to the Eurohoops report, expansions are planned for 2027 and 2031. With the switch to a franchise system, the league also expects an increase in value of up to 25 per cent – both for the individual teams and for the league itself.
Focus on financial sustainability
Despite these ambitious figures, financial sustainability is also a central component of the plan. The EuroLeague intends to continue focusing on strengthening the clubs’ financial foundations. Whilst around 40 per cent of the 13 A-licence teams are currently operating in a financially sustainable manner, the league plans for this to gradually apply to all remaining clubs as well. “A growing number” of A-licence teams have operated in a financially sustainable manner in recent years, according to Xavi Puyada, the EuroLeague’s Chief Financial Officer. Match-day revenue has reportedly doubled in recent years, whilst advertising revenue has grown by 50 per cent over the same period.
The league left open the question of whether the latest plans might have an impact on NBA Europe or could serve as a potential step towards cooperation.