EuroLeague will try to re-negotiate its contract with IMG / News - Basketnews.com

IMG has the unilateral option to extend the partnership with the EuroLeague for another 10 years until the 2035-36 season. However, both parties are expected to sit at the negotiation table to look for the best solution.

Credit: Panagiotis Moschandreou/Euroleague Basketball via Getty Images Credit Panagiotis Moschandreou/Euroleague Basketball via Getty Images

EuroLeague faces an intense summer, as the top European basketball competition not only searches for a new CEO but will also try to get better terms with the IMG agency.

As Callum McCarthy from SportBusiness reports, the terms of the Euroleague's joint venture with IMG is that the agency sells rights to the highest bidder.

IMG is paying a total minimum guarantee of €630 million over the ten seasons from 2016-17 to 2025-26, of which EuroLeague clubs receive a minimum of €363 million over the cycle.

SportBusiness also reports that IMG projected the venture would generate €872 million, with the additional €242 million shared between Euroleague and IMG.

Even though the partnership began on a high note, with EuroLeague clubs' payouts increasing from €18 million in the 2015-16 season to about €30 million in the 2016-17 campaign, the recent years are not looking that bright.

As EuroLeague's global commercial rights revenue is about to exceed €100 million during the 2023-24 season, the clubs will receive a relatively small cut, thought to be just over €40 million.

Moreover, SportBusinessreports that IMG has the unilateral option to extend the joint venture for another 10 seasons, from 2026-27 to 2035-36, if it hits projected revenue targets at the end of the 2023-24 campaign.

That target is expected to be at around €600 million mark and is almost certain to be hit, which puts EuroLeague in a difficult position to look for other partners.

Nevertheless, IMG is unlikely to enforce this clause and is willing to sit at the negotiations table with the EuroLeague clubs, according to SportBusiness. However, IMG holds all cards.

"Sometimes, I feel we are a prisoner to our day-to-day and our year-to-year financial needs, rather than what might sometimes be a better strategic move for long-term growth," Glickman told Callum McCarthy from SportBusiness.

However, Glickman also confirmed that both parties are willing to find the best solution for everyone.

"We're giving [the clubs] more participation in our big picture, and that includes this joint venture," Glickman said. "IMG is an international company, they're amazing. Both parties want to have a conversation about how we can optimize this together because these partnerships go through cycles."

Last week, Glickman announced that he would be stepping down from his CEO position. His deal with the EuroLeague will expire on July 31.

As BasketNews reported on Wednesday, Zalgiris Kaunas general manager Paulius Motiejunas is the leading candidate to replace Glickman as EuroLeague CEO.

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