Irwin A. Kishner, Partner

Irwin Kishner, co-chair of Herrick's Sports Law Group and co-chair of Herrick's Corporate Department, was quoted in Forbes in an article discussing a major evolution for the Basketball Africa League (BAL), transitioning it from a qualification-based model into a franchise system. The league will feature permanent teams "anchored to key African Markets." In addition to these permanent franchises, the league will maintain open spots for other African teams that will earn their place through traditional qualifiers. The article examines the complex question of whether "a franchise system can succeed across Africa’s diverse economic, political, and infrastructural landscape."

According to the article, the BAL's permanent franchises will start with a $50 million buy-in, but may vary across the continent. In discussing the importance of "patient capital," Irwin noted that “[s]tarting a professional sports team doesn’t always generate immediate revenue.” He emphasized 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."

Further, “[m]any 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,” Irwin shared, citing Magic Johnson joining the Dodgers as an example.

The article also discussed a phased investment models as another pathway to investment. “One major investor comes in first, then brings in partners over time, de-risking the investment," Irwin explained. "Investors can gradually contribute capital over two years, with mechanisms for dilution.”

In discussing the new ways for teams to generate revenue, Irwin highlighted arena-centered, mixed-use developments as a major growth avenue. “In the U.S., multi-use developments are common, arenas as the centerpiece, 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.”

Irwin also emphasized that local legitimacy is important 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.”

Read the full article in Forbes here. Access may require a subscription.