NBA Africa announced

[LadyStanley]

NBA announces formation of NBA Africa as the sport expands on the continent

NBA commissioner Adam Silver, in an early morning news conference, estimated the enterprise value for NBA Africa is worth nearly $1 billion.

Africa is a growing market globally, and the NBA’s relationship has grown in recent years, illustrated by the new 12-team Basketball Africa League. Victor Williams, NBA Africa CEO, believes basketball will become a main footprint in Africa within the next 10 years.

“In order to reach that milestone, we've developed a comprehensive growth plan that will greatly accelerate the development of Africa's basketball ecosystem, deepen our fan engagement efforts, advanced social responsibility, and drive economic growth,” Williams said.

Marketing, expanding global reach.

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[LadyStanley]

Former President Barack Obama becomes minority owner in NBA Africa

The NBA is adding a big name to its African initiative.

Former President Barack Obama buys into NBA Africa as minority owner.

 

[Bjorn Le]

Not really sure this is anything but a PR move. Saw some media sources comparing this to their expansion in China and it’s really not the same. Africa does not have the level of disposable middle class income that China does. Wealth in (sub-Saharan) Africa is corporate and upper class wealth, and the pockets of middle class wealth in places like Nigeria, Kenya, South Africa and Botswana likely have little interest in an American sports league.

I’m also not entirely sure what the business model is here. They’ve mentioned merchandise and corporate sponsorship, which don’t make a ton of sense. The biggest African owned companies are a mix of (mostly) South African telecommunications and financial services/insurance companies, and I don’t imagine there is much interest in sponsoring the NBA.

As a vehicle for increasing participation and growing African athletic opportunities, it’s a great idea. As a business move? Not anytime soon. And the problem is they’re definitely selling this as a business move by announcing all these celebrity investors.