Explaining the NBA's interest in European expansion

The conditions seem ripe for David Stern to seriously explore putting teams in Europe. Chris Graythen/Getty Images

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5 Reasons to expand the NBA to Europe

The NBA will investigate the possibility of expanding into Europe over the next decade, a league source told me this week. The preliminary idea would be to create a European division of five teams, but there is no working plan in place as the league considers all options.

I have a lot of questions about a possible move to Europe, especially when it comes to persuading local fans to buy tickets at NBA prices -- that's going to be a hard sell. And yet my impression is that commissioner David Stern is more serious than ever about placing NBA teams overseas. Here are a few potential reasons for his interest:

5. He can't afford to wait. In previous years when the idea of creating NBA franchises overseas would come up, it was always in a hazy futuristic sort of way, as if Stern was hoping that dialogue itself would lead to opportunity. Now there is a sense of purpose to the mission, for a couple of reasons.

The first is that NBA-ready arenas are starting to appear on the landscape in Europe in London and Berlin, with Rome and Madrid planning to build in the future. If the NBA doesn't move into those buildings, then what is to stop a rival group from creating a European league from scratch to compete against the NBA for audiences and players? The league needs to investigate whether European expansion is a legitimate option -- and if so, to exploit it.

Europe could provide the NBA with an opportunity to grow its business after hitting the ceiling domestically. More than a few team owners would like to see Stern find a way to make big money from his 20-year investment in international basketball. A move into Europe would open the door to new sources of revenue.

4. Stern doesn't need to create five European teams all at once. He could begin with three franchises, providing visiting clubs with enough European stops worthy of the long transatlantic flight. Those three teams could be married into the Eastern Conference, and when it's feasible to add two more teams, then a true European division could be formed.

The big issue is whether European customers will buy expensive tickets to 41 games per year -- especially to watch a losing team, as expansion franchises need years to develop. But TV revenue could be a major component: Imagine showing live NBA games on prime time in Western Europe several nights per week.

As hard as the league will work to get it right the first time, there are bound to be some failures. Say the NBA franchise in Rome can't find an audience; it may move to another market as more NBA-styled arenas are built in Europe. The story of the NBA is that franchises move from city to city, and it won't be any different in Europe than it's been in North America.

3. Nationalism isn't the millstone it used to be. Two decades ago, the league would have felt pressure to stock an NBA franchise in Berlin with a lot of German players and to provide the fans in Rome with a team of Italian stars. But no more: The opening of borders in Europe has created an open-mindedness among fans. The best soccer clubs in Europe field players from all over the world, and supporters are buying tickets in record numbers.

2. All-Star weekend will build interest. Over the next decade, the NBA could send the All-Star Game to Europe on two or even three occasions to help create emerging markets. Playing the All-Star Game in London or Berlin would also provide the tired exhibition with new relevance.

1. European basketball needs the NBA. The arcane federations that run basketball in Europe have been unable to find common ground and grow their sport. European basketball is strictly minor league with little hope of becoming profitable, much less of challenging the popularity of soccer. The presence of the NBA would create new interest in basketball and elevate interest in the local leagues and clubs.

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