A new investment group is setting the stage for a groundbreaking global basketball league designed to rival the NBA. The ambitious venture plans to establish six men's teams and six women's teams, with the aim of playing games around the world. In a bold move, the group seeks to secure $5 billion in funding, potentially tapping into private equity and sovereign wealth funds.
Maverick Carter, known for his role as LeBron James' business manager, is advising the group. However, LeBron James himself is not involved in this venture. The group’s initiative marks a significant development in the basketball world, as the NBA has not faced a substantial rival 5-on-5 league since the 1970s. The American Basketball Association, which was absorbed by the NBA after its collapse, was the last notable competitor.
The proposed league seeks to avoid the fate of the American Basketball League, which briefly overshadowed the WNBA in the 1990s before folding after two and a half seasons. By expanding globally and incorporating both men's and women's teams, the new league aims to create a sustainable and competitive environment.
Financially, private equity funds are playing a crucial role in this endeavor. While these funds are limited to a 20% stake in NBA teams and barred from governing roles within the NBA, their involvement in this new league could redefine investment dynamics in professional basketball. The group's strategy involves bringing together multiple private equity funds to achieve their financial goals.
The formation of this league not only challenges NBA norms but also offers a fresh perspective on professional basketball's future. With an international scope and inclusive approach to both men's and women's sports, the league could reshape how basketball is experienced and consumed globally.
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