How NBA’s Africa League shakeup could redefine basketball

The NBA is making its boldest play yet in Africa that could reshape basketball forever.

This week on Yahoo Finance Sports Report, host Joe Pompliano dives into the NBA’s bold plan to reshape its Basketball Africa League. He explains how selling all 12 teams to franchise owners could spark league growth, new markets, and arenas - marking a massive bet on basketball’s future.

Pompliano also covers other major sports business headlines, from soaring MLB postseason ticket prices to the New England Patriots’ latest valuation and Saudi Arabia’s $55 billion takeover of Electronic Arts (EA).

To hear more, check out this week’s episode of Yahoo Finance Sports report here.

Yahoo Finance Sports Report with Joe Pompliano, a vodcast brought to you by Yahoo Finance and Yahoo Sports, looks beyond the latest sports business headlines, analyzes all the need-to-know news - the teams, trades, and billion dollar deals - so you and your portfolio will win BIG.

Yahoo Finance Sports Report is developed and produced by Lauren Pokedoff.

Video Transcript

00:00 Speaker A

We are kicking off this week with Pop's playbook where I take a look at some of the biggest headlines in sports that you and your portfolio need to know.

00:06 Speaker A

First up in today's playbook, let's talk about the MLB playoffs. Ticket prices across sports have gone up. That's no secret. and the MLB playoffs are no exception.

00:15 Speaker A

The cheapest ticket for wild card games in New York, Chicago and Los Angeles are currently selling for more than $300, while Cleveland's prices are still near $100 too.

00:24 Speaker A

But teams aren't the only ones benefiting from higher prices. Approximately 15%

00:30 Speaker A

of MLB's playoff ticket revenue is allocated to the commissioner's office. Players then receive 35% via a bonus structure, and the home and away teams split the remaining 50%.

00:40 Speaker A

Next up on today's playbook is news that Saudi Arabia just pulled off the largest leverage buyout in history. Saudi Arabia's 925 billion sovereign wealth fund is acquiring electronic arts in a $55 billion deal, valuing the video game giant at $210 per share.

00:54 Speaker A

That's a 25% premium to EA's current stock price, and it means EA will now leave the public market to go private.

01:02 Speaker A

Now, EA creates video games like FIFA, Madden and F1, titles that dominate the global sports gaming market. But this deal isn't necessarily about video games.

01:10 Speaker A

For Saudi Arabia's Crown Prince Mohammed bin Salam, it's about influence. By controlling EA, Saudi Arabia gains unprecedented leverage over how billions of fans interact with sports digitally, extending the country's reach far beyond stadiums and into living rooms.

01:25 Speaker A

Next, let's discuss the NBA's new plan for its African League. NBA Commissioner Adam Silver recently announced that the NBA's Basketball Africa League or BAL for short, will transition to a franchise model, selling all 12 teams and allowing each new owner the opportunity to build a home arena.

01:43 Speaker A

Now, the BAL's 12 teams will start this process in the coming months according to Bloomberg, but the franchise model will certainly bring some changes too, such as anchored markets, longer schedules, and increase investment in the league and region.

01:57 Speaker A

It's essentially a bet on Africa's talent pipeline, media riights and arena development, backed by the NBA and FIBA. And for fans, this is the moment. They can buy into cities, visit new venues, and enjoy a more sustainable basketball economy on the continent.

02:11 Speaker A

And the last item in today's playbook is news that Robert Crack is selling minority stake in the NFL's New England Patriots. Now, the terms of this deal are relatively simple. Craft is selling an 8% stake in the Patriots to two groups. Billionaire Dean Metropolis is buying a 5% stake in the team and Six Street is acquiring a 3% stake.

02:27 Speaker A

These minority stakes come with no decision-making power, as the craft family will still own more than 90% of the team. But now, the Patriots are valued at 9 billion. Just a slight increase from the $172 million that Robert Craft paid to acquire the team in 1994.

02:44 Speaker B

This content was not intended to be financial advice and should not be used as a substitute for professional financial services. Related Videos

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