{"text":[[{"start":10.05,"text":"The NBA has told investors it plans to commit more than $3bn to its proposed new European basketball league after some potential team owners raised concerns about a long wait for profits."}],[{"start":23.1,"text":"Following a soft deadline for bids in late March for 12 teams in the competition, the NBA said last month it had received “significant interest” from investors. "}],[{"start":33.55,"text":"Several bids in the targeted $500mn to $1bn range were submitted, while some exceeded $1bn, according to people involved in the process."}],[{"start":44.599999999999994,"text":"However, a number of interested parties raised concerns about the financial model, according to people familiar with the process, and indicated privately to the NBA and its advisers that the league’s revenue projections did not support the suggested team valuations."}],[{"start":58.99999999999999,"text":"The NBA has responded with a promise to invest more, including on guaranteed annual payments for every team and increased prize money, to try to protect teams from losses in the league’s start-up phase, people close to the process said. "}],[{"start":72.19999999999999,"text":"One person said the changes, presented to investors in recent days, were “measured refinements” designed to de-risk the project. The NBA declined to comment."}],[{"start":82.29999999999998,"text":"The proposed league, which is being developed in partnership with basketball governing body FIBA, attracted more than 120 expressions of interest from parties including existing European basketball and football clubs, private investment groups and wealthy individuals, the people said."}],[{"start":98.44999999999999,"text":"These include Blackstone, CVC Capital Partners, RedBird Capital Partners, General Atlantic, BlackRock, BC Partners and Oaktree Capital Management among others, people with knowledge of the details said. Private equity firms are barred from owning teams in the NBA itself."}],[{"start":115.6,"text":"JPMorgan Chase and merchant bank Raine Group are advising the NBA. The new league is designed to combine the financial stability of a US-style franchise system and elements of Europe’s sporting model, which allows teams to be promoted and relegated based on performance. Under the structure of the new league, an initial 12 permanent teams would not face relegation, while four to six places would remain open each year to existing European teams based on performance."}],[{"start":143.85,"text":"The NBA and FIBA have now entered the second phase of the sale process. One person involved in the project said the initial pitch to investors was “vague” and always subject to change. "}],[{"start":155.79999999999998,"text":"Under current plans, the NBA and FIBA would initially own 52 per cent of the new league, while participating teams would collectively own the remaining 48 per cent. Over time, the NBA and FIBA’s stake would be diluted as new teams are added."}],[{"start":171.35,"text":"The NBA’s planned investment would also cover league marketing, operational support and early losses during the launch phase, according to people familiar with the plans, allowing participating clubs to avoid contributing additional capital during the competition’s initial years. "}],[{"start":187.1,"text":"Funding for the new participation payments and expanded prize pool would come from proceeds generated by the sale of team franchises, the people said."}],[{"start":196.2,"text":"More than 20 basketball and football clubs, including several EuroLeague teams, have participated in the process. The final selection of investors will require approval from the NBA’s Board of Governors. FIBA will conduct its own ratification process."}],[{"start":218.75,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1778207860_6171.mp3"}