Understanding The Basketball Africa League’s Franchise Model And Its Impact On African Sports And Local Economies

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At the Bloomberg Philanthropies Global Forum 2025, NBA Commissioner Adam Silver confirmed a major evolution for the Basketball Africa League (BAL): the league will transition from a qualification-based model into a franchise system, featuring permanent teams anchored to key African markets. Silver called it an “amazing opportunity to build the sport there, to build an arena infrastructure.”

Sources have confirmed to Forbes.com that in addition to these permanent franchises, the league will maintain a number of open spots for other African teams, which will earn their place through traditional qualifiers. This hybrid approach combines the stability of a franchise system with the meritocratic spirit that has defined the BAL since its inception

Behind the optimism lies a complex question: can a franchise system succeed across Africa’s diverse economic, political, and infrastructural landscape? This is more than basketball.

To unpack what this shift could mean, Forbes.com spoke with The NBA’s Deputy Commissioner and COO, Mark Tatum, who oversees the league’s international operations, as well as Irwin Kishner, a sports lawyer who has represented franchises across the NBA, NFL, MLB, MLS, and the English Premier League. Their insights reveal how the BAL’s next phase could redefine not only African basketball but also the continent’s broader sports economy.

Financial Readiness and Market Understanding

Tatum outlined the league’s blueprint for success in Africa, stressing that the BAL isn’t simply searching for wealthy buyers; it is looking for stewards who understand both the business of sport and the unique dynamics of the markets they intend to operate in. He made clear that financial readiness remains the foundation of franchise ownership:

“We’re of course a business, so any potential ownership group and transaction need to make financial sense.”

That baseline is non-negotiable. However, the league also recognises that Africa’s markets are at different levels of maturity, meaning ownership must do more than spend; they must understand where and how to invest for future growth.

“Equally important are factors like a track record of developing successful businesses, a deep understanding of the local market and its growth potential, and a commitment to growing basketball in that market, including through investment in infrastructure, player development, and engaging fans in new and creative ways.”

Inclusive Ownership and Long-Term Value Creation

Tatum emphasised the league’s dual approach: attracting international capital while ensuring African stakeholders remain central to the BAL’s long-term identity and success. He noted that the NBA is intentionally designing ownership structures that allow for broad participation without diluting accountability:

“Our ambition is to attract both local and international investors who will bring unique value to the African basketball ecosystem.”

Tatum explained that this inclusivity does not imply an open-ended model; rather, it reflects a deliberate strategy to accommodate different types of investors, from African institutions to global funds, while maintaining a clear leadership hierarchy in each franchise:

“Multiple pathways exist for high-net-worth individuals and investment funds to participate in franchise ownership, including consortium models where a lead investor serves as the public face of the team while sharing the financial investment and returns with a group of partners.”

The BAL’s shift to permanent franchises represents a major evolution in the NBA’s global strategy. Rather than just expanding into Africa, the league is focused on co-creating value with local markets.

Franchise Buy-In and The Importance Of Patient Capital

The BAL’s permanent franchises will start with a $50 million buy-in, according to Andscape. However, this may vary across the continent, depending on market supply and demand, local infrastructure, and franchise valuations, reflecting the diverse economic and developmental landscape.

While Kishner is not directly involved with the BAL, his perspective draws on years of advising professional sports teams and ownership groups, including his role in representing Marc Lasry during the 2023 sale of his 25% stake in the Milwaukee Bucks to Cleveland Browns owners Jimmy and Dee Haslam.

That transaction valued the Bucks at $3.5 billion, a dramatic rise from Lasry’s $550 million purchase in 2014, a clear example of how long-term investment, brand development, and market growth can transform franchise valuations over time.

“Starting a professional sports team doesn’t always generate immediate revenue,” Kishner noted.

He emphasised that in emerging markets, execution hinges on owners with deep financial capacity who can sustain operations through the league’s early years, much like investors did during the formative stages of the WNBA.

Strategic Investors and Phased Investments

Building a successful BAL franchise requires a combination of capital and strategic influence. While deep pockets are essential, investors who bring local knowledge, experience, or public stature can dramatically strengthen a team’s long-term prospects “Many franchises bring in investors who contribute more than just dollars; athletic stars or public figures can elevate the ownership group and make the offer more compelling,” Kishner shared, citing Magic Johnson joining the Dodgers as an example.

Phased investment models offer another pathway, particularly for emerging African markets. “One major investor comes in first, then brings in partners over time, de-risking the investment,” Kishner explained. “Investors can gradually contribute capital over two years, with mechanisms for dilution.”

Given the continent’s diversity and the unique circumstances of each market, Tatum stressed that each BAL franchise proposal will be evaluated on a case-by-case basis: “Each proposal will be assessed individually. In general, we view a permanent BAL franchise spot as a significant long-term investment that can deliver meaningful returns for the franchise, its host market, and the league as a whole.”

In practice, multi-investor consortia, phased buy-ins, and strategic minority partnerships will likely form the backbone of the BAL’s franchise system. This approach allows local investors to participate meaningfully while attracting international capital, balancing financial security with inclusive ownership.

Revenue, Media and Economic Impact

Franchising in the BAL introduces a new way for teams to generate revenue, marking a shift from the current structure. Permanent team homes allow for earnings through ticket sales, merchandise, sponsorships, and media rights, while arenas and game-day experiences create broader economic opportunities.

On how this revenue will be shared between the League and the franchises, Tatum cautions that the model is still being developed: “That’s something we’re still working through, but establishing the right structural framework will be critical to maintaining competitive balance, attracting fans, and ensuring the long-term financial stability of every team.”

Tatum also shared that interest in BAL media rights continues to grow. “We are having productive conversations with a variety of prospective partners that recognise its value as the preeminent sports and entertainment property on the continent.”

Kishner highlighted arena-centred, mixed-use developments as a major growth avenue. “In the U.S., multi-use developments are common, arenas as the centrepiece, surrounded by hotels, retail, restaurants, and residential spaces. These entertainment districts create destinations beyond game day and are prevalent internationally, including around [English] Premier League teams.”

The global sports tourism industry generates over $700 billion annually, roughly 1% of the world’s GDP, and Africa now has the potential to capture a share of that through the BAL’s growth. Rapid urban expansion in cities like Lagos, Accra, Kigali, Johannesburg, Nairobi, and Cairo provides fertile ground for BAL arenas to serve as economic anchors, stimulating local commerce, tourism, and employment. Beyond games, franchise hubs could cultivate ecosystems in broadcasting, merchandising, hospitality, and event management, transforming the league into an engine of broader economic opportunity.

The Role of Community Buy-In

While financial investment is crucial, the BAL franchises ultimately relies on the buy-in that investors foster within the communities they serve. These communities will be the backbone of the franchises, as they are the ones who will purchase tickets, buy merchandise, attend games, and support local programs. Therefore, generating authentic engagement and co-creating value with these communities is just as important as the capital invested.

Tatum emphasises that commitment to the community is just as vital as financial investment for BAL franchise success: “Ultimately, regardless of where an investor is from or based, what matters most is their commitment to growing the ecosystem through investment in infrastructure, player development, and authentic fan engagement in the market where the franchise is located.”

Franchising could significantly enhance the reach and impact of the BAL’s social responsibility and player development programs compared to its current “caravan-style” tournament model. Currently, the league operates largely as a travelling event, with games hosted in select cities and teams often playing on a temporary or rotational basis. While this raises the league’s visibility, it limits sustained community engagement and consistent program delivery, as players and staff are only in each city for a short period.

The BAL already runs a variety of socio-economic and community initiatives that franchises could adopt and expand, tailored to each market. Irwin Kishner emphasises that local legitimacy is crucial for long-term franchise success: “Most ownership groups need to make a concerted effort to be accepted by the local community through clinics, youth programs, and free or low-cost tickets, as well as charitable foundations.”

By introducing permanent franchise teams in key cities, the BAL can shift its operations from a travelling showcase to locally anchored hubs. These teams could maintain year-round programs, including basketball clinics, coaching and referee development, and community outreach initiatives. This would allow programs like BAL4HER and BAL Advance to operate continuously, reaching more women, youth, and local professionals. Permanent teams also facilitate stronger partnerships with schools, community centres, and municipal authorities, creating stable infrastructure for building courts, hosting workshops, and delivering financial literacy and mentorship programs.

Thus, franchising would not only strengthen community engagement but also expand the league’s economic footprint: nearly 37,000 jobs have been linked to BAL games across the continent during the league’s first four seasons, a figure likely to grow as permanent teams increase operations and local impact.

The BAL As A Strategic Growth Engine

The Basketball Africa League has always represented more than a competition. From the outset, it was built to be an engine for opportunity; a framework for talent development, job creation, entertainment, and continental pride. The success of the league will ultimately hinge on its ability to engage Africa’s largest and fastest-growing demographic: its youth. With over 600 million people under the age of 25, Africa’s young population represents both the audience and the talent pipeline that will define the league’s future.

By establishing permanent franchises, the BAL can create local hubs that nurture talent on the continent rather than merely exporting it. Year-round programs, from coaching and referee development to mentorship, financial literacy, and women’s initiatives, will provide the systems and infrastructure needed to develop players, coaches, and sports professionals in Africa. This approach ensures that the continent benefits fully from the talent it produces, cultivating careers, inspiring communities, and strengthening the local sports ecosystem.

In the long term, franchising positions the BAL not only as a premier basketball league but also as a sustainable platform for social and economic impact, leaving enduring legacies in communities across Africa while shaping the next generation of athletes, leaders, and fans.