Gherardini paused for a moment, then suddenly thought of a question, "Boss, there's another question. Those big clubs playing in the ULEB EuroLeague... Panathinaikos, Efes, Maccabi Tel Aviv... why would they want to switch to a new league? The $1 million guarantee is tempting, but ULEB can also give them hundreds of thousands in bonuses, plus the backing of the Spain Telecommunications brand."
"You're right," Lin Qi nodded. "A guaranteed minimum income alone isn't enough to attract them. These oligarchs don't run teams to save hundreds of thousands of dollars a year; they want glory, championships, and the feeling of being cheered for in the VIP box."
He turned to a new page in his notebook.
"So we need to give them a bigger lure." Lin Qi began writing down numbers, "Not just a guaranteed minimum income, but a sufficiently high championship incentive... high enough that they can't refuse."
Gherardini's eyes lit up. "You mean..."
Lin Qi wrote down the new numbers in his notebook:
Basic guarantee: $1 million/year (pre-season payment)
Champion prize money: $5 million
Runner-up prize money: US$2 million
Prize money for the semifinals: $1 million per team
"So, the fixed expenses for the first year aren't 13 million, but rather..." Gherardini quickly calculated in his mind, "... at least 22 million US dollars."
"Yes," Lin Qi said calmly, "And the broadcasters will only give a maximum of $5 million in the first year, or even nothing. So in the first year, I need to prepare to lose $15 million to $20 million."
Gherardini gasped, "Boss, this bet..."
"But think about it, if I told the Panathinaikos owner... join the EBA, and you'd not only be guaranteed a minimum of $1 million a year, but if you win the championship, you'd get another $5 million, for a total of $6 million. That's three to four times more than the prize money you'd get in the ULEB EuroLeague." Lin Qi looked at Gherardini, "Do you think he'd refuse?"
"No," Gherardini shook his head. "They already spend $10 million on the team every year. If they can get a guaranteed $1 million plus a $5 million championship bonus, it's like saving $6 million. Besides, as long as the teams in the league are strong enough, the sense of honor in winning the EBA championship is no less than that of the ULEB EuroLeague."
"But there's another problem," Gherardini frowned, "If these clubs join the EBA, how will FIBA and ULEB react? Will they ban these teams from participating in other competitions? If that happens, the clubs will be forced to choose between two options, and our appeal will be greatly diminished."
Lin Qi flicked his cigarette ash and said calmly, "So EBA never had an exclusivity clause from the beginning."
"What?" Gherardini was taken aback.
"Our agreement is simple: as long as the schedules don't conflict, clubs can participate in the domestic league, the ULEB EuroLeague, and even the FIBA Super League simultaneously." Lin Qi looked at Gherardini. "We're not forcing anyone to take sides; we're just offering an option... an option that can allow them to earn millions more dollars a year."
Gherardini pondered for a few seconds, his eyes gradually brightening. "This way, the burden of joining the EBA is almost zero. Clubs don't need to offend FIBA or ULEB, don't need to give up their domestic leagues, they just need to free up some time on their schedules..."
"Yes," Lin Qi continued, "And it's good for the broadcasters too. We can schedule EBA games midweek, avoiding the weekend domestic leagues. Europe viewers can watch top EBA matches on Tuesdays and Thursdays, and their domestic leagues on weekends. Broadcasters can sell two rights simultaneously."
"But if the club participates in both the EBA and ULEB EuroLeague at the same time, wouldn't the schedule be too packed?" Gherardini asked.
"That's their own choice," Lin Qi said calmly. "If a team were to play in the EBA, ULEB EuroLeague, and the domestic league simultaneously, with three or even four games a week, the players would be exhausted. By mid-season, they would naturally make a choice... whether to continue earning hundreds of thousands in prize money in the ULEB EuroLeague, or to go all out for the 5 million prize money in the EBA championship?"
Gherardini understood. "So you're not forcing them to take sides with contracts, you're letting them make their own choices with money."
"Let market forces weed out inferior products." Lin Qi looked out the window. "The problem with ULEB isn't the rules, it's the lack of funding. Once EBA proves it can bring more revenue to clubs, those teams still stuck in ULEB will either not get an EBA invitation, or they're fools."
Lin Qi paused, then added, "Moreover, a non-exclusivity agreement has another advantage... it gives us a moral footing. We're not splitting up Europe basketball; we're simply offering a new business option. If FIBA and ULEB dare to block clubs from joining the EBA, they'll become monopolists, and European Union antitrust laws will make them pay dearly."
Gherardini nodded, fully understanding the brilliance of the entire strategy.
"So in the first year, some teams might play in both the EBA and ULEB," Gherardini said. "But in the second year, when the EBA broadcast contract rises to $20 million and the prize pool is even higher..."
"By the second year, the teams that are still in ULEB will come knocking on our door," Lin Qi said calmly. "At that time, we will gradually tighten the rules and set exclusivity clauses. But right now, what we need is the lowest possible entry barrier."
Lin Qi lit a cigarette. "More importantly, the $5 million championship prize will motivate these clubs to work incredibly hard to improve the quality of their matches. Higher quality matches mean higher viewership. Higher viewership means the broadcast contract for the following year can sell for $20 million or even more."
"So the 20 million burned in the first year was paving the way for the commercial explosion in the second year." Gherardini finally understood the whole logic.
"Yes." Lin Qi flicked his cigarette ash. "Use money to create a high-quality season, prove to broadcasters with high-quality games... Europe basketball can be a good business."
The car slowly slowed down in the night and finally stopped in front of the VIP passage at Belgrade Nikola Tesla Airport. On the runway, a Gulfstream business jet was ready for takeoff, its engines emitting a deep roar.
Lin Qi opened the car door, and the summer night breeze of the Balkan Peninsula, carrying the smell of aviation kerosene, wafted towards him.
"Go prepare the EBA Founding Memorandum, Gherardini." Lin Qi stood in front of the gangway and patted Gherardini on the shoulder.
An hour later, the plane landed at Milan Malpensa Airport.
Lin Qi stepped out of first class, with Gherardini following behind him, carrying a heavy briefcase.
"Boss, I've already booked a suite," Gherardini said as he walked. "We can rest tonight, and then..."
"No," Lin Qi interrupted him, "I need to clarify the financial framework of the entire plan tonight."
Gherardini paused for a moment, but quickly nodded. "I understand."
He knew Lin Qi's habits. Once this boss got into work mode, he wouldn't stop until the problem was completely solved.