That's an estimate of enterprise value. When you say owners and players split the pool, I think you are referring to the split via the salary cap. So just to clarify, I think, it goes to the owners, who then turn around and have expenses, and some of those expenses are proportionately higher. The point being, there's value (eg. the total estimated $4b enterprise value for the NBA as a whole directly/indirectly due to China), there's revenues (an annual dollar coming in figure), there's costs (which via the salary cap alone would go up, but also certainly other costs associated with marketing to China), and then there's income/free cash flow. In any case, clearly China has value. I personally think its somewhat less than others have made out, principally because there's also an opportunity cost. While technically the NBA could be everywhere for every country and bring in money from all of it, there is an issue of resource allocation and in reality they can't be there yet or anytime soon. Meaning the NBA has probably left a lot of value on the table from other areas of the world, including America, by focusing so hard on the Chinese market these past 15 years. Take the Chinese NBA marketing infrastructure, move it to India, beef up South America, etc. Obviously China has a much higher GDP than India still. I'm not saying you move on from China and replace it easily or fully. Just pointing out there are other ways to mitigate the hit in the short term.
So there was supposed to be a meeting between Trump team and China team this upcoming weekend. Trump just slapped a whole bunch of blacklists and visa bans on Chinese companies and individuals. China was very upset and the meetings probably won't happen, IIRC. When I ask "que bono" this seems like a pretty good trade war chip to play, and ginning up a controversy seems like a good way to get Chinese NBA fans to buy in to not getting upset at the absence of the NBA. I feel a conspiracy theory coming on...
So something I was told by a friend who produces video games, he said part of the reason you garner these partnerships is because then the host country will also crack down on piracy. Not sure about the validity of it, but he said they got nowhere near what they were asking from Russia, but did the deal anyways because Russia said they would crack down on pirates and illegal copies. As long as Russia got a piece of the pie they didn't want to turn a blind eye to that. He worked on the Postal games, so maybe it's different for larger projects? I guess my question here, and it's my ignorance to operating a business globally, is that a fear the NBA should have? Like I joke about how we are about to get cheap or even free 4k streams hosted by China stream farms, but I'm only half joking. China has no problem undercutting or even violating the rules other companies outside their nation have, just look at Huawei and Google. I think part of the benefit the NBA sees is that China doesn't come in and allow or hell even secretly fund streaming services to undercut the NBA's. But, I could be off base here.
Ish, I keep forgetting about that, so yeah, I lean to you and your expertise here, is the NBA at risk of a massive Chinese version of ballstreams? Fans may rejoice here on this one.
I could see that happening, rather than paying for content they just steal it and broadcast it anyway, of course that means that they lose control over what is IN the content, and the NBA would probably start politicizing stuff in the broadcasts that China would not like to get them to stop. Round and round we go. DD
All the NBA has to do is keep it low key and let this pass. China is not going to give up the NBA money and visa versa.
Looks like some of the China NBA fans could be in trouble for treason to their country. The King was smiling in the video.
Its definitely something positive, not cursing them. maybe yelling LBJ or some kind of name but I am not sure.
I was honestly thinking they have a shell game similar to how they did LZPlay with Huawei. They throw money at it, make it so that they control it, but nothing on the books. Then when content comes down the pipe they block it somehow. Hell, maybe even they don't have the real game audio going? The NBA can't hit us over the head with anti-CCP materials throughout the broadcast, so when it's not shown they have nothing to block. Edit: I mean, short of making Winnie the Pooh and new sponsor of the game of course.
Well most of them iPhones are made in China. At least Apple stopped the unpaid child labor in their supply chain.
Let it play out and see how the fans there can take not seeing the NBA This is like a strike season and the Chinese government will try to force feed a horrible product
Communism died around 2000 when they started letting U.s. into their manufacturing sector. There is no real form of government anymore. Not even democracy.... I dare say. There are just perceived styles. Trust, everything is very controlled. See Patriot Act.
