EuroLeague clubs considering joining NBA Europe face financial risks, including penalties and loss of shares, according to Chus Bueno.
Exit costs for EuroLeague clubs
Quitting the EuroLeague to join the future NBA Europe would carry financial consequences, according to Chus Bueno, the general director of the EuroLeague, who detailed the risks to clubs considering the North American project in an interview with Reuters on October 19.Contractual penalties and losses
The 13 shareholder clubs are bound by 10-year agreements, and a club seeking to exit could face contractual penalties and individual claims for damages from other clubs. Additionally, leaving would result in the loss of shares valued collectively at over 80 million euros.Economic transformation underway
These consequences are based on Bueno's interpretation of contractual obligations, and no departures with such penalties have been announced. The warnings come as the EuroLeague continues its economic transformation.Financial viability of clubs
Bueno noted that only 40 percent of current license holders are financially viable, highlighting the economic challenges some clubs face despite the competition's growth. To address this, the EuroLeague is focusing on its new franchise model and expansion to 24 teams, aiming to increase club value and long-term profitability.Future plans and NBA discussions
The EuroLeague also plans to announce new franchise participants by mid-November 2026, an important deadline in its efforts to solidify its position ahead of the anticipated launch of NBA Europe in 2027. While Bueno emphasizes the risks of leaving, he does not rule out the possibility of a partnership with the NBA.Rejection of NBA proposal
On October 6, EuroLeague owners rejected a collaboration proposal from the North American league during a meeting in Lake Como, Italy. However, discussions remain open, and Bueno stated that the EuroLeague is willing to consider a new proposal if it aligns with the competition's and clubs' interests.Concerns about market fragmentation
He expressed concern over market fragmentation, with two competing leagues vying for the same investors, partners, and top teams.