Maverick Carter Is Helping Guide A New Basketball League

Maverick Carter, LeBron James’ business partner at SpringHill, is helping a group of investors looking to raise $5 billion to start a new international basketball league.

The Big Play: The new secret league is reportedly being positioned as a competitor to the NBA… which… good luck. The NBA hasn’t had a competitor to its 5-on-5 matchups since the 1970s, according to ESPN. The hope seems to be that leveraging Carter’s influence and access to LeBron could be a key assist in convincing potential partners and players to take the ambition seriously.

Behind the League: Can the person closest to the biggest player in the NBA help create a challenger to the NBA?

• The investor group includes a mix of private equity funds that are already making some big moves in the NBA.
• The still-unnamed league is expected to consist of six men’s teams and six women’s teams, which will play games all around the world.
• The league may even look to raise money from sovereign wealth funds… so expect Saudi Arabia to already be interested.

Final Play: While it may seem like a long shot to raise enough money to compete with the NBA, the league could still attract considerable interest from PE firms. They’ve been getting more involved with NBA teams recently as franchise valuations jump — but they are also constrained by a maximum 20% ownership rule and are barred from serving as governors in the franchises they invest in. So, finding an alternative that doesn’t have these restrictions could be too good to pass up… if the venture has enough legitimacy.

Prediction: While LeBron James is not yet involved with the new league (and has aspirations to become an NBA owner post-retirement), his participation either as an investor or owner could be a game-changer. He’s already involved in pro pickleball, so anything’s possible.