The NBA is seeking ownership of the European Basketball League groups

The NBA is looking to Europe for the next stage of growth.

The league announced Monday that it will move forward with a joint exploration of a new men’s professional league in Europe, in partnership with the International Basketball Federation, also known as FIBA. The NBA said it plans to begin the process of engaging with potential teams and ownership groups in January.

The franchise could be worth more than $1 billion, according to a person familiar with the matter who requested anonymity to discuss details that have not yet been announced.

NBA Commissioner Adam Silver said at the NBA Cup last week in Las Vegas JP Morgan The Rain Group has been actively meeting with interested parties in Europe and said there is a lot of “positive interest” moving forward.

Bankers have met with at least 70 potential investors, sources told CNBC. Discussions began about a year and a half ago. The goal is to accept non-binding offers next month and vote on giving the green light to the league at the Board of Governors meeting in March, the sources said.

NBA Deputy Commissioner Mark Tatum previously said the league was considering possible ownership by sovereign wealth funds. The NBA is also engaging current European soccer club owners.

The association first announced the exploration of a men’s basketball league in Europe last March.

“Our conversations with various stakeholders in Europe have reinforced our belief that there is a tremendous opportunity around creating a new league on the continent,” Silver said in a statement on Monday. “In collaboration with FIBA, we look forward to engaging potential clubs and ownership groups that share our vision of the game’s potential in Europe.”

The NBA said it would also provide financial support and resources to European basketball. The company plans to invest in local leagues and develop across existing FIBA ​​programs to create a pipeline of coaches, players and referees, according to a statement on Monday.

The NBA estimates there are 270 million potential basketball fans in Europe, calling it an “untapped market.” This year, on opening night, the NBA had 71 players born in Europe. Some of the league’s biggest stars — Victor Wimpanyama, Giannis Antetokounmpo, Nikola Jokic, Luka Doncic — hail from Europe.

The NBA said basketball is the fastest growing sport in Europe and the No. 2 sport behind only football. The league said the timing was perfect, as last season was the most watched in the NBA across the league’s social and digital channels.

The NBA believes the current European basketball market is undervalued and lacks teams in big cities, according to a source familiar with the matter. According to the Wall Street Journal, two-thirds of teams participating in the Europa League lose money.

According to the source, the NBA is looking to bring teams to Berlin, Paris, Rome and London. Spain, Turkey and Greece are also being considered.

If the NBA moves forward, it may start bringing in exhibition teams to play in Europe in the near term. Eventually, there could be NBA teams competing against European teams in a Cup-style or All-Star-type event.

FIBA Secretary General Andreas Zajklis said that this announcement represents great news for European basketball and its fans.

“The project is designed in a way that will improve the sustainability of the entire European basketball ecosystem, including players, clubs, leagues and national federations, by creating an indirect impact that will strongly benefit basketball fans across Europe,” he said in a statement.

The National Basketball Association (NBA) has just completed the fifth season of its CAF League, also partnering with the International Basketball Association (FIBA). The league said it grows every year in attendance, merchandise sales and social engagement.

Correction: This story has been updated to reflect the teams’ potential franchise value.