Whispers in the sports business world are buzzing about a potential “Formula 1 of basketball” – a high-flying global league aiming to challenge the dominance of the North American NBA. Behind the scenes, a close friend of LeBron James, the only active billionaire basketball player, is reportedly seeking a staggering $5 billion to bring this ambitious project to life.
A group of investors is currently circulating among America’s business elite, seeking to secure a massive $5 billion in funding. This substantial sum is tied to an equally grand ambition: the creation of a global basketball league designed as a direct alternative to the NBA, widely considered the premier league in the world. Spearheading this endeavor is a close confidante and business partner of one of basketball’s biggest icons.
Maverick Carter, a prominent promoter and businessman, has been intertwined with the career of LeBron James, the seemingly ageless 40-year-old global basketball superstar, from its very inception.
James, since signing his first professional contract, has proven to be a savvy businessman with a keen sense for brand building, a trait that propelled him to become the first and currently the only active billionaire player in the sport.
Carter’s relationship with James dates back to their childhood, having been friends since the age of eight. He is now an integral part of the vast business ecosystem that LeBron James has meticulously constructed around himself.
Together, Carter and James co-founded LRMR Ventures, a holding company that encompasses the majority of their joint ventures, including the entertainment company SpringHill Company, the athlete-focused brand and media house Uninterrupted, and the marketing firm Robot Company.
It is Carter who is now reportedly acting as a consultant for this international league project, which insiders are describing as a “Formula 1 of basketball.” This suggests a globally traveling sports product, with Singapore being the only location currently confirmed as a potential hub.
The group seeking the necessary funding includes notable figures such as former Facebook executive Grady Burnett, Skype co-founder Geoff Prentice, and Jason Stein and Daniel Haimovic from the investment firm SC Holdings.
The NBA, the established basketball powerhouse, may soon face a new global competitor. The proposed league would feature eight men’s and eight women’s teams, operating on a global tour model with a total of eight international destinations. This worldwide scope aligns with the increasing globalization of basketball.
The NBA itself has seen a record number of international players, with 125 foreign athletes on regular season rosters this year. The league also holds regular season games in international locations like Paris, the United Arab Emirates, Mexico, and China.
While not entirely unprecedented, the history of such rival leagues is mixed, with some attempts failing to gain traction. A recent success story is LIV Golf, which has managed to attract significant names from the PGA Tour. Conversely, the proposed European Football Super League, intended to rival the prestigious Champions League, ultimately collapsed due to widespread opposition.
Interestingly, the NBA has also been vocal about its own ambitions to expand into Europe, potentially creating its own competition to directly challenge the established EuroLeague.
The representatives of Swiss banking giant UBS and investment bank Evercore are reportedly involved in raising capital for this ambitious global basketball league project. While LeBron James himself is not believed to be directly involved with the as-yet-unnamed league, the participation of his lifelong business partner Carter has raised eyebrows in the United States.
This is particularly noteworthy given James’s current stage of his playing career. Widely considered the NBA’s all-time leading scorer, he is expected to retire within the next two years. However, his significant business ambitions are no secret.
LeBron James likely cannot afford to be directly associated with a project that would directly compete with the NBA. His long-stated goal is to own an NBA team, following in the footsteps of the legendary Michael Jordan, with whom he is frequently compared as one of the greatest players in the sport’s history. However, current league rules prohibit active players from owning teams.
This makes it even more crucial for LeBron to avoid any direct affiliation with a rival league. The decision to admit new teams into the currently 30-team NBA rests solely with the existing team owners. All profits, including those from the $76 billion television rights deal set to begin next season, are shared equally among them.
Expansion of the NBA is anticipated in the coming years, likely after LeBron James’s retirement. Las Vegas, often dubbed the “gambling mecca,” and Seattle, a city with a past NBA franchise, are frequently mentioned as potential locations for new teams.
Joining the prestigious ranks of NBA team owners is neither easy nor cheap. The price tag for each new team is likely to exceed the $5 billion that Maverick Carter and his associates are currently trying to raise.
Recent record-breaking sales of iconic NBA franchises have significantly influenced team valuations. The Grousbeck family’s sale of the Boston Celtics for $6.1 billion to Symphony Technology Group founder Bill Chisholm provided a key market assessment for what incoming owners might be expected to pay. With two new teams, the NBA could potentially generate at least $12 billion.
For context, the NBA’s highest-paid player, Stephen Curry, currently earns $55 million per season.
LeBron James would likely need to lead a consortium of investors to acquire a license for a potential 31st NBA team, as he probably wouldn’t secure the necessary funds on his own. As someone deeply entrenched in the league’s history, James cannot afford to enter ownership negotiations with the image of someone willing to undermine the NBA’s legacy for his own business ventures.