Last season, the NBA generated $12.3 billion in revenue while the NFL had $23 billion, both records for the leagues. And with virtually untapped markets across the Atlantic, these leagues are looking to boost their bottom lines through expansion into Europe.

The NFL’s idea: a European division

In 2007, the NFL began sending teams to play games in Europe, a tradition that has grown in popularity and frequency over the years, despite the heavy involvement of the Jacksonville Jaguars. This year, there were a record seven international games (six in Europe), and now reports of something more permanent are afoot. Per Pro Football Talk:

  • The NFL Players Association is preparing for the league to make a push for a four-team European division.
  • The report also states that the league could opt to create expansion teams rather than relocate four established teams (hello, Jacksonville) to an overseas division.

But more immediately…the league wants to increase the number of permissible international games in the next collective bargaining agreement from 10 to 16. The NFL played its first game in Spain last Sunday, and league Commissioner Roger Goodell raved about the response, saying, “We will be back, we are excited.”

The NBA’s idea: a European league

While the NFL is more in the planning stages with its division idea, last week, the NBA announced its intentions to start a 16-team European league:

  • Its goal is to launch in October 2027, and it’s already enlisted JPMorgan Chase and the Raine Group to find investors.
  • Initial talks have begun with sovereign wealth funds, private equity companies, and wealthy families.

Untapped market: George Aivazoglou, the NBA’s SVP and managing director for Europe and the Middle East, says Europe has a $50 billion sports market, with basketball leagues currently accounting for less than 0.5% of it. EuroLeague, the Continent’s biggest basketball league (which recently finished its 25th season), has seen steady growth in recent years.

Zoom out: While there are fewer NBA fans in Europe than in the US, there is a higher concentration of younger viewers who love watching North American hoops, according to an S&P Global survey of 2023 viewership data. Tapping into that audience—along with teams potentially paying franchise fees as high as $1 billion—would make this a fruitful endeavor for the NBA.—DL