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The Scoop
African basketball organizations are actively seeking financial backers in preparation for a franchise bidding process in the Basketball Africa League, Semafor has learned.
The NBA-owned league aims to award an initial set of franchises by year end, according to investors and executives who spoke to Semafor on condition of anonymity as they are not authorized to discuss the plans.
Teams are awaiting details of the official criteria to be used to evaluate bids, as well as bid fees which will likely vary for different markets. Estimates could go up to the tens of millions of dollars, according to three industry sources who spoke with Semafor.
Factors expected to be considered in awarding the franchises include the bidders’ ability to professionally manage basketball organizations and the strength of their local fanbases. The targeting of large, vibrant cities on the continent to host franchises is also expected to help drive fan engagement and interest.
One of BAL’s founding investors, Pave Investments, the family office of Nigeria’s Folawiyo family, said franchises would help “fortify BAL’s foundation.” It “ensures sustainable growth,” said Kwamena Afful, managing director of Pave, which also owns Lagos-based team Gidi Giants.
”[BAL] can be commercially viable sooner than people think,” another investor told Semafor. He added that the shift could catalyze the development of sports infrastructure including arenas and practice facilities in Africa “if the NBA takes a long-term view”.
Know More
The franchise model would establish a league with permanent franchises similar to the NBA, a major shift away from the present model where participating teams qualify from local leagues across the continent. It remains unclear, however, whether a number of open spots will be retained to offer a qualifying path for additional teams. It’s estimated that the franchise model — which would feature more games played over a longer schedule — would make for a more professional and commercially viable league.
Countries whose domestic league champions are guaranteed automatic qualification spots for the BAL’s 2025 season — set to tip off on April 5th in Rabat —- are Nigeria, Tunisia, Angola, Senegal, Egypt, South Africa, Morocco and Rwanda. Rabat, Dakar and Kigali will host group stage games while Pretoria will host this year’s play-offs and finals.
Bloomberg reported last year that BAL’s losses were projected to hit $19 million in the 2024 financial year on revenue of around $15 million. NBA Deputy Commissioner Mark Tatum disputed the figures at the time but said the league does not disclose specific financial information.
Step Back
Colin Rasmussen, CEO of Twende Sports — owners of BAL side Nairobi City Thunder — said he “would welcome a shift to a franchise model”. He argued that such a format, with more games and a longer schedule, would also “make it easier for the league to negotiate media rights packages and sponsorships.”
The Thunder last year became the first ever Kenyan side to qualify for the BAL. The upcoming season will feature six first-time BAL participants.
Rasmussen noted that their investment in the team, including efforts to grow attendance, attract sponsors and recruit talented players and front office staff represented their confidence in the long-term commercial success of the BAL and African basketball. “We wouldn’t be doing this if we didn’t think there is long-term commercial value,” he said. Twende Sports acquired the side in 2023.
Martin’s view
Four years since it was established, the BAL has significantly improved the visibility of African basketball and is helping push the sport further into the mainstream in Africa where football remains king, at least by viewership. And while it is still early days for a league with a long-term vision, pressure to boost its commercial viability will only increase.
The league’s establishment was backed by around $75 million from investors including former US president Barrack Obama. Bloomberg reported last year that the funds were nearly “exhausted” - highlighting the need for the BAL to accelerate the development of new revenue streams.
A closed league or semi-open format would however not be without its disadvantages, as it would potentially lock out numerous smaller sides which otherwise would have a shot at qualifying for the league. The BAL could make up for this by committing significant resources to the development of the larger African basketball ecosystem — including supporting local domestic leagues and clubs, offering developmental pathways for emerging talent on the continent and infrastructure including community courts, practice facilities and arenas.
Room for Disagreement
While there is a general support among investors and industry insiders for some form of franchise model with BAL, not everyone thinks the league should be “closed off” altogether and want a potential hybrid model which still allows outside clubs to also participate. “As investors, we believe that basketball will reach a new level within the next two to three years if we improve infrastructure and move toward a hybrid model that combines franchises and clubs,” said Jean-Luc, Agboyibo, CEO of Côte d’Ivoire-based Omega Sports Holding and general manager of ABC Fighters, the Abidjan-based basketball club.
The View From Europe
The NBA is exploring a plan to establish a new professional league in Europe, Adam Silver confirmed. The proposal features a franchise model, with team valuations expected to start at $500 million and go even higher for large markets such as Paris and London.
The NBA would reportedly retain a 50% stake in the venture, with franchise investors owning the rest. Teams would continue to participate in their domestic leagues.
The BAL is currently the NBA’s sole professional league outside the United States.
Notable
- How the Basketball Africa League structure was established. BBC explains the potential impact and challenges of the league and the NBA’s role in establishing it.
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