The EuroLeague is poised for its most sweeping structural overhaul since the competition's modern era began, after shareholders voted on August 25 to press ahead with an expansion to 24 teams and a permanent franchise system that could reshape the economics of European basketball for a generation.
At a meeting of the Board of Shareholders of Euroleague Commercial Assets (ECA), clubs received an update on the franchise application process that was formally launched in July. The headline numbers are striking: 11 pre-accepted candidates are now submitting formal binding offers representing a combined value of almost €700 million in franchise fees, with total expected investment across those projects exceeding €3.2 billion over the next five years.
The process generated more than 20 expressions of interest, drawn from both established EuroLeague and EuroCup clubs and entirely new investment projects spanning continental Europe and the Middle East. Four additional proposals remain on hold, leaving the field wide open as the league prepares for a final decision at an Owners' meeting scheduled for the end of September 2026.
Under the plan, up to eight new franchises will join the competition's 13 existing shareholders starting with the 2027–28 season, bringing the total to 21 permanent franchises out of a 24-team field. The remaining three spots would presumably be filled through a different allocation mechanism, though the league's official communication did not specify how. A potential complication lurks in the status of CSKA Moscow: if the Russian club does not regain its right to compete, the effective franchise count could drop to 20.
A €4.3 Billion Vision
The franchise push is the centrepiece of what ECA calls its Transformational Strategic Roadmap, approved on March 3 and designed to accelerate growth, value creation and global positioning. Investment bank JB Capital has projected that the aggregated value of the league and its clubs could reach €4.3 billion by 2027 — a figure that underlines the bet institutional investors are placing on European basketball's commercial trajectory.
The league presented updated projections of 15 percent year-on-year revenue growth, a significant upward revision from figures shared with the General Assembly on July 7. Management attributed the improvement to a string of recent commercial agreements, with sustained growth reported across media, digital and partnership revenue streams.
"This next phase, of course, is the creation of franchises," the league stated in its press release, framing the expansion not as a one-off event but as the beginning of a fundamentally different competitive and commercial model. Under a franchise system, clubs hold permanent, transferable equity stakes in the competition — a sharp departure from the licence-based model that has governed European basketball for decades and that critics have long argued created instability and limited long-term investment.
What the Numbers Mean
The binding offers — averaging roughly €64 million per franchise — signal that the new entrants view the EuroLeague as a premium sports asset with significant upside. For context, the figure compares favourably with expansion fees in other European sports leagues and approaches levels seen in mid-tier North American franchise sales.
The five-year investment horizon of €3.2 billion covers not only franchise acquisition costs but also operational commitments, facility upgrades, youth development programmes and marketing spend that prospective owners are expected to make as part of their proposals. The breadth of the financial commitment suggests that at least some bidders are backed by sovereign wealth or large-scale private equity — the league's own statement noted interest from "new investment projects from continental Europe and the Middle East."
The presence of Middle Eastern capital in particular would mark a strategic inflection point. EuroLeague clubs have long courted Gulf investment, but a formal franchise allocation would embed that capital into the league's governance structure, giving new shareholders a direct voice in commercial and competitive decisions.
Institutional Framework Takes Shape
Alongside the franchise process, the Board was updated on a series of institutional agreements that collectively strengthen the league's labour relations architecture. An agreement with the Euroleague Basketball Head Coaches Board (EHCB) was signed, establishing the basis for a comprehensive Framework Agreement with the coaches' union — the first of its kind in European basketball.
Similarly, the league confirmed the renewal of its deal with the Union Euroleague Basketball Officials (UEBO), with the formal signing expected during the 27th Pre-Season Clinic for Officials in Wrocław. These agreements, alongside the existing EuroLeague Players Association (ELPA) deal, create a tripartite framework that aligns the interests of players, coaches and officials under a common institutional roof.
The significance of these accords extends beyond labour relations. By formalising its relationships with all three major stakeholder groups, the EuroLeague is building the kind of institutional infrastructure that institutional investors — particularly those from North America or the Gulf — expect before committing capital to a sports property. The message is clear: the league is not just expanding in size but professionalising its governance to match.
The Road to September
The next two months will be decisive. The Board approved the continuation of evaluation and due diligence processes for all 11 pre-accepted candidates. Euroleague Basketball will conduct an "extensive due diligence review" before presenting final recommendations to the Owners' meeting at the end of September.
The timeline is tight. Clubs will need to demonstrate not only the financial capacity to meet franchise fee obligations but also credible plans for competitive investment, fan engagement, arena standards and compliance with the league's evolving regulatory framework. The due diligence process is expected to be the most rigorous in the competition's history.
For existing shareholders, the expansion raises both opportunity and risk. On one hand, the injection of fresh capital and the creation of a more commercially robust league should benefit all participants. On the other, the admission of up to eight new franchises — some potentially backed by state-linked investment — could alter the competitive balance and shift power within the league's governance structures.
European Basketball at a Crossroads
The EuroLeague's franchise expansion comes at a moment of broader transformation in European basketball. The competition has spent years navigating the tension between sporting meritocracy and financial sustainability, and the franchise model represents a decisive lean toward the latter. By offering permanent, transferable stakes, the league is betting that long-term equity value — rather than annual competitive results — will drive the next wave of growth.
Whether that bet pays off will depend on execution. The league must manage the delicate process of integrating new franchises without alienating existing clubs, while also delivering on the commercial growth projections that underpin the entire strategy. The presence of Middle Eastern and potentially American capital adds a layer of geopolitical complexity that European basketball has rarely had to confront.
What is clear is that the status quo was no longer tenable. With 13 shareholders governing a competition that aspires to rival the NBA's global reach, the EuroLeague needed to scale — and scale fast. The franchise model, with its promise of institutional capital and permanent equity, offers the most credible path to that goal. The September vote will determine whether European basketball's biggest gamble becomes its greatest success story.
Sources
- https://www.eurohoops.net/en/euroleague/2001586/euroleague-expanding-to-24-teams-with-21-franchises/
- https://sportando.basketball/en/
