By: Nicholas Patricios
In the world of sports, the business side is just as competitive as the game itself. One prominent figure in sports entrepreneurship is Maverick Carter, the longtime manager and business partner of basketball legend LeBron James. As the Chief Executive Officer of SpringHill Entertainment, Carter has established himself as a leader in both entertainment and sports management. However, Carter is best known for managing LeBron James’ career, most notably securing deals like Lebron’s lifetime agreement with Nike, the largest single-athlete guarantee in the company’s history. Now, Carter is striving to achieve something that has never been done before.
Carter is advising a group of investors who are raising five billion dollars to establish a new international basketball league. This league aims to tap into the global potential of basketball and could serve as a serious rival to the NBA. Although nothing is confirmed yet, it could seemingly operate similarly to how LIV Golf has operated, by offering highly lucrative contracts that could tempt the top athletes from established leagues, including the NBA.
To raise the necessary funds, Carter’s group is working with major financial institutions like UBS and Evercore. Though not yet established, the league is expected to feature twelve teams—six men’s and six women’s teams—competing in eight cities around the world. The structure would be comparable to Formula 1, with two-week stays in each city. Currently, the only confirmed location for the new league is Singapore, but the league is most likely planning a few locations across Europe.
Basketball is a truly global sport, unlike American Football, with the NBA serving as the highest level for talent and exposure. As of 2024, there are 125 international players across NBA rosters, with many representing countries all over the world. The NBA has used this diversity to continue to expand its influence globally, with international games in locations such as China, the United Arab Emirates, Mexico, and France. Along the same lines, the NBA has an event during the Rising Stars Challenge held during the all-star break where NBA players born in the United States compete against NBA players born outside of the United States.
However, while the NBA has dominated the global scene for decades, there are other successful leagues internationally. The EuroLeague, Spain’s Liga ACB, Turkey’s Basketball Super League (BSL), and Germany’s Basketball Bundesliga (BBL) are just a few examples. As basketball continues to grow in popularity worldwide, the emergence of another major international league could further the sport’s global reach. Creating a global league sounds promising, but it is not without its challenges. One of the biggest legal hurdles this prospective league will face could be the differences in legal systems across the countries. This legal difference will likely include, but are not limited to, labor and employment laws, tax laws, and sporting visas.
Operating a league across multiple countries involves navigating the complex landscape of labor and employment laws. Player wages, health benefits, and union rights are often governed by national laws, which can vary significantly between nations. Ensuring compliance with these labor laws could pose substantial challenges, particularly when managing contracts, benefits, and disputes on an international scale. For instance, some bigger cities such as London, Paris, and Berlin are more likely targets for league operations, but each independent country has different qualifications and requirements for sporting visas, which can complicate matters. One potential solution for the league is the Schengen Sports Visa, which allows players to enter 29 European countries with a single visa.
Another potential obstacle arises under contract law. If players are under contract with another league, especially the NBA, and then choose to sign with the new league, there could be a breach of contract. The NBA will likely seek significant damages if players violate their exclusivity clauses. To mitigate these issues, it would be wise for any new league to target players who are not in the NBA, recently retired but still popular NBA players, and foreign players.
Operating a sports league across several countries means dealing with international tax codes, tariffs, and endorsement laws. Varying tax regulations on contracts, sponsorships, and merchandise could impact the league’s profitability and sustainability. The United Kingdom, for example, taxes athletes competing in the country based on their entire global endorsements which, if they happened to play in London, would possibly impact some players’ decision to enter the league. Another legal concern centers around intellectual property. The league would need to create new logos, and team names, as they could get into shady territory if their branding mimics well-established entities. For example, if the branding too closely resembles the NBA or FIBA (International Basketball Federation), the league could face hefty legal challenges.
While launching a global basketball league presents various obstacles, the ambition behind it is clear. Even though the NBA has broad international influence, there is still room for competition. With strong financial backing and Maverick Carter’s expertise in business management, this new league could very well survive and thrive. Ultimately, while building a rival to the NBA might seem daunting, it is not impossible. It might even be less challenging than trying to establish an NFL team abroad, as discussed in my previous blog post. With the right strategy, financial support, and global appeal, this new basketball league might be the start of something truly revolutionary in the sports world.
