Key facts
- Nikesh Arora, CEO of Palo Alto Networks, is reportedly leading a consortium of investors for the NBA's new London team.
- The bid for the London franchise is expected to exceed $1 billion.
- Arora previously led a group that acquired a stake in the London Spirit Hundred cricket team.
- The NBA plans to sell rights to 12 new teams across Europe.
- Advisers received numerous bids in March, and the field is being narrowed for some cities.
US technology billionaire Nikesh Arora is reportedly at the forefront of a consortium preparing to bid over $1 billion for the National Basketball Association's (NBA) new London franchise. Arora, the chief executive of cybersecurity firm Palo Alto Networks, has assembled investors for what is described as a serious pursuit of the highly coveted team.
This move follows Arora's previous involvement in sports acquisitions, notably his role in assembling the 'Tech Titans' group that purchased a 49% stake in the London Spirit Hundred cricket franchise last year. It remains unclear if key figures from that group, such as the heads of Google/Alphabet and Microsoft, are part of the current NBA bid.
The NBA is planning to launch a dozen new teams across major European cities, including London, Berlin, Rome, Paris, Madrid, and Milan, aiming to generate billions of dollars. Advisers to the league received numerous bids from a diverse range of investors, including private equity firms, football clubs, and wealthy individuals, in late March. The selection process for some cities is nearing completion, with decisions anticipated in the coming weeks.
The London team has already attracted significant interest, with bids reportedly in the hundreds of millions of pounds from entities such as the Reuben family and a consortium involving Liberty Global and former Tottenham Hotspur chairman Daniel Levy. Other prominent sports investors, like RedBird Capital Partners (owner of AC Milan) and Qatar Sports Investments (owner of Paris Saint-Germain), have shown interest in different European locations.
Despite the strong investor interest, some potential bidders have voiced concerns regarding the proposed financial model for the new league, citing substantial infrastructure costs and uncertainties about basketball's popularity in Europe compared to football. The NBA has committed to investing billions of dollars to support the league's launch.