Among the key financiers of the recently concluded Basketball Africa League is New Fortress Energy, a firm involved in the development, financing, and construction of energy infrastructure assets. The firm was founded by Wes Edens, who is also the owner for popular football club Aston Villa as well as Milwaukee Bucks, an American basketball team competing in the NBA. The New Times’ Collins Mwai spoke to Edens on investments in BAL, trajectory of the league as well as other opportunities in the emerging league. Excerpts below What drew your interest in BAL considering that it was the inaugural season with not much prelude? While there was no specific experience in NBA Basketball Africa League, there are lots other experiences to base on such as global athletes coming from Africa playing on stages across the world. I think it is a very natural step to establish a basketball league here given the incredible abundance of athletic talent. What are your projections for BAL’s growth in coming years? First and foremost it needs to be a competitive league. It is not an attempt to further distribute NBA products but rather create a league itself. There are basketball leagues that exist in these countries. The relationship between those leagues and this league is something that is yet to be defined. The first step is to establish this league, there are 12 different countries which will lead a competitive framework to emerge. Aston Villa FC, Milwaukee Bucks what drives your interests in sports investments? I am a sports nerd, I am still active in various activities. I think sports investment is the perfect marriage with business opportunities. I do not collect art, I do not do other activities. This is what I love and these are serious business investments. Given your experience in the sector, what do you think is needed for the BAL to reach its goal of being a top basketball league in the years to come? When you look at sports investments, if your first 10 questions are not about media, media rights, media values and TV contracting, then you are not asking the right questions. Media value is what drives the value of sport. The hallmark of a productive BAL would be a productive media presence for people to care about it, watch it and follow it. As the media profile develops, so will the league. And not only the African media, but the global media as people recognize the quality of athletes in the league. New Fortress Energy which you funded the league through, is the firm looking to increase presence on the continent? It was an easy decision to be involved as NFE in sponsoring BAL. It is focused on the continent and the markets that we think are in need of our activities. Most of the continent is in need of power, clean and reliable power. It is a ripple place to do business. I often tell people not to characterize Africa as one as there are many different countries with each different in its characteristics and requiring a unique strategy. But I think there is an overarching need for clean, reliable power. We are also looking for sources of gas for our business and Africa is a place that is very useful. We can be one of the few companies interested in buying gas and also building power plants for domestic use. Africa is an extraordinary opportunity and really worth an opportunity. As an investor, what’s on your checklist when deciding on what markets to enter? When you are building infrastructure, it takes everybody to say yes and one person to say no. The governments that have been most helpful to us in facilitating investment are the ones who have helped us get organized around all the regulatory framework that exists. Time is the enemy of investments, so things need to be done timely. I think I am a patient investor and a very impatient person within a meaningful time frame. The governments that have done a good job in managing their own affairs and encouraging investment and cutting down bureaucracy. While we are compliant to regulations, what makes it difficult is the lack of clarity of what is required. Clarity is a prerequisite, it should be a real goal for governments. What are your thoughts on Rwanda as an investment destination? I think that Rwanda is extra-ordinary. This is not only one the cleanest city in the continent but in the world. If you look back in the 1960s, the GDP of Singapore and Jamaica were roughly the same, in 60 years things have changed dramatically. That is largely an effect of leadership. The leadership of Rwanda under President Kagame has been extraordinary. For an economy that is not rich in mineral resources, people have been the resources and there is an ambition for growth. What are your thoughts and expectations of subsequent BAL tourneys? Personally I learn by doing. What happened in the inaugural season could probably not have happened anywhere else in the continent taking into account the pandemic. We are lucky to have a relationship with Rwanda. We will sit down (The African Committee and the NBA) as a group and talk about what we would like to be better going forward to have a natural evolution. Competitive tournaments that look like this are certain in the near future, the challenge in Africa is infrastructure and travel and those are challenges that we will look at going forward. I am sure that it will evolve into something very productive. I think the development of the competitive framework of the sport as young people get better is a big part of it. If you look at what the G-league in the United States was 5 years ago and what it is today, there is a lot of young talent and serves as a gate way for people to get into the NBA. Given the interest in sports and talent available, that is very possible. National leagues are very helpful, what the BAL will involve into is something yet to be seen. Wes Edens, the owner for popular football club Aston Villa as well as Milwaukee Bucks, an American basketball team competing in the NBA. Net photo.
