Liverpool owners Fenway Sports Group have reportedly coveted an entry into basketball for years.
FSG have been linked with an NBA expansion franchise in the past, potentially one in either Las Vegas or Seattle. It would likely set the Liverpool owners back £3-4bn at the very least.
For context, analysts usually value Liverpool themselves at around £4bn, less than half of what the very top NBA teams trade for these days.
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That is despite the fact that Liverpool are now expecting to generate revenues of £700m every season, much bigger than every single NBA team.
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Why? Because the Premier League does not guarantee profits every year like basketball does.
While FSG are in line for a huge return on the £300m or so they paid for Liverpool in 2010 when they do eventually exit the club, significant day-to-day profitability is still a long, long way off.
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That’s why North American sports franchises are often deemed more desirable by investors and, as a result, come with a huge price tag.
But FSG have the chance to enter the market at a cheaper price point.
NBA Europe option open to FSG as Liverpool owners approached over deal
2026 is the year that the NBA hopes to drum up interest in its proposed new European league slated to launch in October next year.
The basketball organisation is expecting to sell franchise spots for up to £750m, Bloomberg reports.
Rousing The Kop understands that FSG have been approached about the prospect of launching a team.
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The Boston-headquartered organisation’s level of interest is not known, nor is whether it would be a Liverpool-branded team or a standalone venture.
But it is known that the likes of Paris Saint-Germain and Manchester City have been approached about branding their own teams, as have other Premier League and top European clubs.
However, University of Liverpool football finance lecturer Kieran Maguire is sceptical that A) NBA Europe can be a success and B) FSG would be inclined to join up.
“Expanding NBA into Europe is like Oasis trying to break the United States,” he said in exclusive conversation with Rousing The Kop.
“It’s easier said than done because you come up against cultural differences. Football is such a dominant sport that others struggle to get a market share.
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“Basketball has tried so often. I went to a basketball game a couple of years ago and the atmosphere was so flat. They were doing all the Americanisation. It was okay, but I can’t remember who won, I didn’t particularly care, and I didn’t get a sense that there was much of a sense of identity or community.
“Liverpool have still got a lot of upside from FSG’s point of view. People forget that they bought the club for £300m. They will continue to focus there. That will be their preferred route, so I don’t anticipate that they will be looking at this, even if they have been approached.”
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