Football fans in Africa can be forgiven for thinking Morocco’s major sporting play this year is preparing to host the 35th edition of the Africa Cup of Nations. Beyond football, the most popular and most watched game on the continent, basketball is gradually laying down roots, and Morocco is hosting the Basketball Africa League (BAL), which is now in its fifth season.
Save for countries like Angola, Egypt, and Senegal, the sport has always been on the periphery of other more celebrated sports in Africa, like athletics, with performances in international competition showing that it has not always been a priority for Africa.
But much has changed in the past four years.
Funding the Basketball Africa League (BAL)
Launched in 2021, the Basketball Africa League (BAL), headquartered in Dakar, Senegal, is a partnership between the International Basketball Federation (FIBA) and the NBA, is a professional league featuring 12 club teams from across Africa that compete across various host cities, having qualified from local leagues across the continent.
The goal from the beginning was for the BAL to be a vehicle for growth over time; growth that cuts across franchising, broadcast rights, talent discovery and development, and building and maintaining sports infrastructure that can generate revenue.
As of 2021, the BAL was worth an estimated $1 billion, with financing coming from ex-NBA players (Ian Mahinmi, Grant Hill, Luol Deng, Junior Bridgman, and Grant Hill), Babatunde Folawiyuo (Chairman and CEO of Yinka Folawiyo Group), and Forest Whitaker (Academy Award-winning actor), among others. Barack Obama acquired a minority stake, profits from which would go to the African youth initiatives of the Obama Foundation.
Tackling financial struggles with franchises
However, all has not gone according to plan, revenue-wise. According to a 2024 Bloomberg report, the BAL was projected to record $19 million in losses in the 2024 financial year, having generated around $15 million in revenue. Though the Deputy Commissioner of the NBA, Mark Tatum, did not agree with the figures, he did say that the league doesn’t give out financial information.
Last year’s financial performance probably opened the door to franchising this early in the project, with African basketball organisations seeking backers as they prepare for the bidding process in the BAL.
Details of the bidding criteria are still unknown. But it wouldn’t be out of place for successful bidders to have strong fan bases and the capacity to manage basketball organisations.
What is clear, however, is that this move is aimed at creating a more professional and profitable league. And with this move, there is sure to be an effect on the sports economy of host cities.
Non-franchising revenue
Broadcast rights
The fifth installment of the BAL is scheduled to reach enthusiasts in 214 countries and territories across 17 languages through free-to-air and paid TV broadcast partnerships with the African Union of Broadcasting, Canal+, ESPN, and American Forces Network (AFN), among others.
Sponsorship and advertising
Since inception, different sponsors have gotten on the BAL wagon, with Nigeria’s Flutterwave announcing a multi-year partnership with the BAL that made the payments technology company an associate partner.
“As a lifelong Basketball fan, I am excited that we are able to team up with the BAL as it tips off its inaugural season,” said Flutterwave Chief Commercial Officer Ifeoluwa Orioke. “There’s progress going on in Africa, and this is the time to tap into the enthusiasm of young people to unite the continent and open doors for young Africans through sports.”
“Technology plays an important role in basketball and our ability to make our content and products accessible and convenient for fans to consume,” said BAL President Amadou Gallo Fall. “This partnership also reflects our ambition to play a role in the industries that will shape the continent’s economic growth, facilitate entrepreneurship, and strengthen the continent’s position on the global stage.”
Flutterwave ended its partnership in 2023.
The BAL currently has partnership deals with Wave Mobile Money, RwandaAir, Visit Rwanda, AFREXIMBANK., and Wilson Sporting Goods Co., among others.
Tourism
In 2022, Rwanda attracted more than one million visitors, generating more than $240 million in income.
According to Michaella Rugwizangoga, Rwanda Development Board (RDB) Chief Tourism Officer, Rwanda’s tourism-spurring strategy relies heavily on sports. The BAL finals are one of the few regular events that have promoted the country as a top travel destination.
It was therefore no surprise when, two years ago, the BAL and the RDB announced a five-year extension of their collaboration, bringing the timeline to 2028. This means league games, including the playoffs and finals, will hold at Rwanda’s BK Arena in Kigali in 2024, 2026, and 2028.
Boosting local businesses beyond the court
Looking beyond more established entities, even informal vendors, such as food and merchandise sellers situated close to stadiums and fan zones, benefit from the increased traffic during games, which gives them the opportunity to earn more than their daily average.
Every BAL season witnesses the creation of jobs across different sectors. Staffing, for instance, offers temporary employment to hundreds, with security, ushering, and logistics positions, among others, opening up.
The creative economy is also not left out when the BAL rolls around, with merchandising and artiste performances highlights at fan zones. The 2023 edition saw artistes from Cairo and Kigali showcase African creativity with their performances.
An investor’s dream scenario?
Investors typically want to see three things: how your business will make money and how and when they will make a return on their investment, your growth potential and how you will attain profitability and keep growing, and your cash flow forecast, profit and loss statement, and balance sheet.
The BAL might be flailing in the profit and loss area, with the balance sheet not particularly in the green, but it still remains an investor’s dream as it has the potential for profit and growth.
Speaking to BBC Sport Africa, late NBA great Dikembe Mutombo said, “Africa is a continent full of secrets and treasure and I think all this treasure is going to be found.” It remains to be seen if this will become a reality.