Some structure...

If you can't tell by now, Euroleague and NBA are two separate beasts, and it's time we point out and talk about one of the main differences. Euroleague hosts a collection of teams from different domestic leagues (from many of the European countries), and is very similar in concept to Champions League. That means there are different teams each year who compete and that there are entries to compete; a MUCH different structure than the NBA. We learned on our field study to the headquarters about qualifications and scheduling logistics... but here's a brief reminder.

Qualifications are given on a basis of:


- Performance in the previous season's domestic league
- Performance over the previous two or three domestic seasons
- Contracts with ULEB
- The winner of the previous season's Eurocup receives a place


They can be given Class A, B, or C licenses. These are granted in accordance with financial performance, TV deals, and league performance.

Above: A picture of then rookie Dirk Nowitzki, famously acquired on draft day 1998 by Don Nelson and the Dallas Mavericks in what is now widely accepted as the greatest draft-day trade of the last twenty years.  At the time, the deal was considered somewhat questionable throughout the league as there had not yet been any standout European ballers worthy of a lottery pick.  Historically, Nowitzki will go down as the greatest European NBA player to date, and one of the greatest forwards in the history of the game.

Noah

One of the most interesting and apparent differences within the culture of the two leagues: merchandising and branding.  Naturally, with such universal clubs as FC Barcelona taking membership in the Euroleague, team branding is inevitable and welcomed.  However, unlike the NBA where jersey and apparel sales are monumental, merchandising is essentially nonexistent in the Euroleague culture.  It is extremely uncommon for a player to be popular enough for his jersey to be frequently purchased, even amongst fans actually attending games.  There are many factors combining for this (primarily one-year contracts make purchasing jerseys risky, for example) however the greatest input behind this difference is a cultural one.  Euroleague basketball clubs have no expectation of merchandising sales, and for this reason do not force the issue and place little emphasis on this revenue stream.  One can only imagine that as the Euroleague gains popularity and momentum through Europe, jersey sales will become slightly more common, but there will always be more Messi jerseys available in Barcelona than anything else, for example.

What other factors might lead to the lack of merchandising for Euroleague?  Do you think there are any significant cultural differences between United States commercialism and European commercialism?  Maybe the individualistic culture of the United States plays a role...

Any thoughts are much appreciated!

Noah

Interesting Global Basketball 60 Minutes

Ended Up having a solid, championship filled career. (with the Bulls obviously)

Mikey

Euroleague Broadcasting

Although it has not taken off to a popularity stand point of the NBA or UEFA for that matter, but it is still popular in over 160 countries around the world.  The link below includes all of the broadcasting stations, pretty impressive actually.
Are you impressed??

Broadcasting List

Mikey

As you have probably guessed by now, the Euroleague does not exactly have an equivalent revenue stream comparable to that of the NBA.  In fact, the Euroleague takes in only a fraction of the money that the NBA sees annually.  With that said, the Euroleague has established some very legitimate marketing partnerships with companies respected globally.  The Euroleague is in the midst of its second year of a five-year contract with its primary partner, and namesake, Turkish Airlines.  The contract gives Turkish Airlines extensive rights, including the extremely unique advantage of technically naming the competition Turkish Airlines Euroleague Basketball.  It is not common for a company to actually involve itself in the renaming of a league's brand, and as such Turkish Airlines and Euroleague basketball are essentially synonymous.  Included in the contract is also the rights to global sponsorship for the Eurocup.  From a more athletic lens, Nike is the official gameball of all basketball competition held by the organization, as well as gaining the naming rights to the Nike International Junior Tournament.  This partnership is obviously very attractive for both sides: just another outlet for Nike to put their brand on, but an opportunity for the Euroleague to attach itself with the world's most recognizable athletics manufacturing brand.  Additionally, the junior tournament rights are very significant as it provides a legitimate (thanks to the Nike name) forum for young international players to gain exposure on a greater stage.  Interesting amongst its main partners are Bwin and Efes Pilesener, respectively a sports gambling organization and an alcohol manufacture.  As seen with different football clubs throughout Europe, alcohol sponsorships have sometime proven to be more of a hassle then they are actually worth (for both the club and the company). Additionally, the concept of intentionally connecting yourself, as a league, to a gambling facilitator is questionable (at least by United States standards) and something that the NBA would certainly never be interested in.

Obviously, the NBA and Euroleague seek out entirely different sponsors when seeking revenue.  Perhaps out of necessity, perhaps out of culture, it seems as though the motives of Euroleague are a far cry from that of the NBA.  I'm curious to hear what people have to say about both the organized betting sponsorship as well as the alcohol manufacture sponsorship, both somewhat questionable by traditional moral standards.  Additionally, do you-the viewer-feel as though something is taken away from the Euroleague name by adding the Turkish Airlines precursor?  Any comments are much appreciated!

Noah

Due to the debt certain teams put themselves in by buying players that they can't afford, the legal council for the Euroleague is implementing a maximum spending rule set specifically for each team.  What do you think about that given that smaller market teams will now have even cheaper players than before, thus making it hard for them to reach the peak of success in the league.

?? Mikey

"Euroleague Basketball is seeking to strengthen principles that ensure good financial practices to protect the integrity and smooth running of the competition, as well as to increase the long-term financial health of its participating clubs. Euroleague Basketball and its clubs understand that the global objective of this project is to increase the stability of the competition, through the optimization of management methods and budgetary control. 

The main criterion that falls under these principles is the break-even rule, which calls for clubs to commit to not spending more than what they generate in economic activity. "

New league budget Restrictions