Apollo, Ares, Sixth Street Circle Early Talks On Multi-Billion NBA Europe Play

Ares Management Corp., Apollo Global Management (NYSE:APO) and Sixth Street Partners are reportedly having early-stage conversations regarding the National Basketball Association's (NBA) European expansion.

Anonymous sources told Bloomberg that the NBA is weighing a proposal to launch a European league that would feature a mix of new franchises, current clubs and new football organizations.

Should this proposal be approved, it would create a multi-billion-dollar opportunity for private investments, although conversations are still ongoing and are subject to change. More than 120 prospective investors have shown interest in the process, the article stated.

Private equity in sports has been an accelerating investment trend, where firms are looking to acquire minority or majority stakes in professional teams, leagues and businesses, as company valuations grow. Major leagues such as the NFL, NBA, MLB, and NHL now permit private equity investment into its franchises. 

According to a report from Meketa, the global sports market reached $463 billion in revenue in 2024. It is projected to accelerate to just over $600 billion in revenue by 2028, and to nearly $863 billion by 2033. 

Drivers of this growth include "the rising value of media rights deals, increased fan engagement, the expansion of sponsorship and merchandising opportunities, and growth in sports-adjacent businesses," the report stated.

Last month, a consortium comprising Blackstone (NYSE:BX), Bolt Ventures, Aditya Birla Group, and The Times of India Group agreed to acquire the Royal Challengers Bengaluru (RCB) cricket franchise. This acquisition, valued at approximately $1.78 billion, included both the men’s Indian Premier League and the women's Premier League teams.

Earlier this year, KKR (NYSE:KKR) entered into a definitive agreement to acquire Arctos Partners, an institutional investor in professional sports franchise stakes.

The transaction is valued at $1.4 billion plus an additional $550 million in future equity tied to both KKR share price and business-specific performance targets and vesting through 2031. Arctos is the “largest” institutional investor in professional sports franchises. The firm manages approximately $15 billion in assets under management.

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