EuroLeague CEO Motiejunas responds to allegations of involvement in Lions acquisition

EuroLeague CEO Paulius Motiejunas responded to an investigation by Antonis Kalkavouras from Gazzetta.gr, which claims that he played a part in the London Lions acquisition by Zalgiris Kaunas.

Gazzetta’s investigation also questions the integrity of the way Motiejunas transferred his Zalgiris shares so he could take his position as EuroLeague CEO.

This story has been updated. On Monday, BasketNews contacted the EuroLeague, submitting questions for EuroLeague and Paulius Motiejunas to share their perspective on the investigation.

After this story was published on Wednesday, EuroLeague responded to BasketNews’ query, providing Paulius Motiejunas’s statement.
“Following the article published by Gazzetta.gr last Sunday, misrepresenting facts and insinuating conflict of interest without any evidence, I am compelled to clarify the numerous inaccuracies and unfounded allegations presented in the article and reproduced by other media outlets,” Motiejunas said in a written statement sent to BasketNews. “The article relies on unnamed sources and speculation, presenting them as facts without any verifiable evidence. Such reporting practices are irresponsible and do not meet the standards for accuracy and fairness.”

“I believe it is crucial for media outlets to uphold the highest standards of journalism by verifying facts before publication. Normally, I wouldn’t care about the baseless allegations. However, this time, it misleads the public, undermines the integrity of the Euroleague, and therefore has to be addressed.

I remain committed to transparency and ethical conduct in all my professional endeavors and expect the same level of responsibility from reputable media organizations,” Motiejunas added.

As Gazzetta mentions in its investigation, to become the EuroLeague CEO, Motiejunas couldn’t be the Zalgiris owner. Therefore, Motiejunas transferred his Zalgiris shares to the current club’s president, Paulius Jankunas.
To facilitate this transaction, Motiejunas established a new company named UAB Zalgiris CLUB. Ownership of the team was transferred to this new company under Jankunas, while Motiejunas retained 55% of UAB Zalgiris GROUP, which now only owns the Zalgirio Arena.

Gazzetta also claims that Motiejunas could easily regain his shares thanks to a gentleman’s agreement with Jankunas. In addition, the EuroLeague shareholders are unaware that the current EuroLeague CEO may regain Zalgiris ownership, Gazzetta reports.

“Upon accepting the role of Euroleague Basketball CEO, I fully divested my shares in Zalgiris Kaunas and stepped down from all positions within the organization,” Motiejunas said in a written statement to BasketNews. “The Zalgiris Kaunas shares I owned were legally transferred to the new President, Paulius Jankunas, in an agreement that complied with all legal and ethical standards.”

“All Euroleague shareholding clubs were informed of this transition, and no concerns were raised,” ensured Motiejunas.
Gazzetta’s article claims that Motiejunas, while already serving as EuroLeague’s CEO, used his company UAB Zalgiris GROUP and influence as a senior figure of the EuroLeague to effectively take control of the London Lions and transfer it to his business partners in the Zalgiris-Tesonet group (UAB Zalgiris CLUB).

On top of that, this acquisition was made without informing the other EuroLeague shareholders and clubs, per Gazzetta.

The document dated July 17 shows that UAB Zalgiris GROUP, owned by Paulius Motiejunas, issued a loan to the London Lions in exchange for acquiring all of their assets as security in the form of a floating charge.This meant that UAB Zalgiris GROUP received all assets of the English team as collateral in exchange for a loan. From that point, UAB Zalgiris GROUP, a Motiejunas-controlled entity, effectively took over the London Lions.

“Zalgiris Group, in which Tesonet also holds shares, was used to provide a short-term loan solely to simplify the transaction, following industry standard and legal practices,” Motiejunas explained Zalgiris Group involvement.

None of the EuroLeague’s shareholder clubs were formally informed of these deal specifics, which presents a conflict of interest with his role as CEO of the ECA, Gazzetta reports. The London team competed in Eurocup last year, reaching the semifinals.

This floating charge was formally registered a week later, on July 25, in the UK’s Companies House. Less than a week later, on July 30, UAB Zalgiris GROUP used the floating charge and loan to petition the court to place the English club into administration, effectively bankrupting it.
This move allowed the tech company Tesonet (Motiejunas’s partner in UAB Zalgiris GROUP) to gain full control over the London Lions, removing the team from its previous owners (777 Partners).

According to Gazzetta, Lenz Balan, the new president of the London Lions and a former employee of the previous ownership group (777 Partners), worked closely with the EuroLeague CEO Paulius Motiejunas for several months to orchestrate this successful takeover plan

However, in a written answer to BasketNews, Motiejunas explained that he wasn’t involved in the process. He claimed that Zalgiris Group was only used to simplify the transaction.
“I didn’t have any involvement in the ownership transition of the London Lions basketball club, Tesonet’s acquisition of the London Lions was an independent business transaction,” Motiejunas noted.

Moreover, Motiejunas also claimed that the EuroLeague shareholders were informed about the London Lions acquisition, adding that the claims about him being involved are unfounded.

“Zalgiris Group is not a shareholder of the London Lions; the club is completely owned by Tesonet. All Euroleague shareholding clubs were duly informed of this development during the summer. The assertion that I used my position to facilitate this acquisition is unfounded,” Motiejunas said in a written statement to BasketNews.

Full Paulius Motiejunas statement to BasketNews:”Following the article published by Gazzetta.gr last Sunday, misrepresenting facts and insinuating conflict of interest without any evidence, I am compelled to clarify the numerous inaccuracies and unfounded allegations presented in the article and reproduced by other media outlets.

1.⁠ ⁠Upon accepting the role of Euroleague Basketball CEO, I fully divested my shares in Zalgiris Kaunas and stepped down from all positions within the organization.

2.⁠ ⁠The Zalgiris Kaunas shares I owned were legally transferred to the new President, Paulius Jankunas, in an agreement that complied with all legal and ethical standards. All Euroleague shareholding clubs were informed of this transition, and no concerns were raised.

3.⁠ ⁠I didn’t have any involvement in the ownership transition of the London Lions basketball club, Tesonet’s acquisition of the London Lions was an independent business transaction. Zalgiris Group, in which Tesonet also holds shares, was used to provide a short-term loan solely to simplify the transaction, following industry standard and legal practices.
4.⁠ ⁠Zalgiris Group is not a shareholder of the London Lions; the club is completely owned by Tesonet. All Euroleague shareholding clubs were duly informed of this development during the summer. The assertion that I used my position to facilitate this acquisition is unfounded.

5.⁠ ⁠The article relies on unnamed sources and speculation, presenting them as facts without any verifiable evidence. Such reporting practices are irresponsible and do not meet the standards for accuracy and fairness.

I believe it is crucial for media outlets to uphold the highest standards of journalism by verifying facts before publication. Normally, I wouldn’t care about the baseless allegations. However, this time, it misleads the public, undermines the integrity of the Euroleague, and therefore has to be addressed. I remain committed to transparency and ethical conduct in all my professional endeavors and expect the same level of responsibility from reputable media organizations.”