"We're excited about the Hollywood Fame bringing highly skilled basketball players to the fans of Los Angeles," Discala said in a statement.
Players are trying out for their celebrity owners Tuesday. According to the Web site, the team will consist of professional basketball players, amateurs and "famous celebrities."
The original ABA, which existed between 1967 and 1976, merged with the NBA, but a new ABA came about in 2000, now with 60 teams.
The Fame's inaugural season will begin in November.