The NBA is pursuing ownership groups for a potential basketball league in Europe

The NBA is looking to Europe for its next stage of growth.

The league announced on Monday that it will move forward with a joint exploration of a new professional men’s league in Europe, in partnership with the International Basketball Federation, also called FIBA. The NBA said it plans to start the process of engaging with prospective teams and ownership groups in January.

Franchise values could be upward of a $1 million, according to a person familiar with the matter who requested anonymity to speak about details that haven’t been made public yet.

At the League Cup last week in Las Vegas, NBA Commissioner Adam Silver said JPMorgan and the Raine Group have been actively meeting with interested parties in Europe and that there is a lot of “positive interest” in moving forward.

The bankers have met with at least 70 potential investors, sources told CNBC. Discussions began about a year and a half ago. The goal is to take non-binding bids next month and vote on greenlighting the league at the board of governors meeting in March, sources said.

NBA Deputy Commissioner Mark Tatum has said previously that the league is contemplating potential ownership by sovereign wealth funds. The NBA is also engaging current European soccer club owners.

The league first announced the exploration of a men’s basketball league in Europe last March.

“Our conversations with various stakeholders in Europe have reinforced our belief that an enormous opportunity exists around the creation of a new league on the continent,” Silver said in a release Monday. “Together with FIBA, we look forward to engaging prospective clubs and ownership groups that share our vision for the game’s potential in Europe.”

The NBA said it will also provide financial support and resources to European basketball. It plans to invest in domestic leagues and development across FIBA’s existing programs to create a pipeline of coaches, players and referees, according to the Monday release.

The NBA estimates there are a estimated 270 million potential basketball fans in Europe, calling it an “untapped market.” This year, on opening night, the NBA had 71 European-born players. Some of league’s biggest stars — Shai Gilgeous-Alexander, Victor Wembanyama, Giannis Antetokounmpo, Nikola Jokić and Luka Dončić — all hail from Europe.

The NBA said basketball is the fastest-growing sport in Europe and the number two sport only behind soccer. The league said the timing is perfect, as last season was the NBA’s most-watched across the league’s social and digital channels.

The NBA believes the current European basketball market is undervalued and lacks teams in marquee cities, according to a source familiar with the matter. Two-thirds of teams in the already established EuroLeague lose money, according to the Wall Street Journal.

The NBA would be looking to bring teams to Berlin, Paris, Rome and London, according to the source. It is also considering Spain, Turkey and Greece.

If the NBA moves forward with the league, it could begin bringing exhibition teams to play in Europe in the near term. Eventually, there could even be NBA teams competing against European teams in a Cup-style or All-Star type event.

FIBA Secretary General Andreas Zagklis said the announcement is great news for European basketball and its fans.

“The project is conceived in a way that will improve the sustainability of the entire European basketball ecosystem, including players, clubs, leagues and national federations, by generating a knock-on effect that will strongly benefit basketball fans throughout Europe,” he said in a statement.

The NBA just completed the fifth season of its African League, also in partnership with FIBA. The league said it has grown every year in attendance, merchandise sales and social engagement.