NBA apologizes after China threatens pulling sponsorship $$

[JackSlater]

Also, how much can China really impact the NBA financially? And vice versa, China has to be making a **** ton off of them, no?

The NBA makes way more from China than China does from the NBA. I've read that the NBA's income from China years is, conservatively, over half a billion a year, and that's without getting into things like sponsor ties to China or the shoe company ties to China. For China the risk is reputation. Hundreds of millions of Chinese people watch the NBA, and they aren't just going to stop even if China tries to block the NBA. Of course this incident is further exposing China in countries like the United States, but the league openly defying the Chinese government would be noticed by many citizens in China and that is what the government wouldn't want.

Basically, I don't think that either side wants to see the NBA out of China by any stretch. The NBA loses money and the Chinese government loses "face" and sees its reputation somewhat damaged. The Chinese government wants the NBA to show submissiveness and the NBA basically wants the whole thing to go away. Of course, it's now going to come up every time an NBA player or coach tries to weigh in on important issues not pertaining to basketball.

 

[Albatros]

They can impact the NBA financially A LOT. So far, the Chinese government is batting 1.000 on their threats to any companies that dare challenge them, no one has had the guts to call their bluff and risk losing access to a major market. It will be interesting to see if this escalates and the NBA calls the PRC out on their threats, but I highly doubt it. Too much money on the line, and I doubt enough of the owners or players care enough to about human rights in China to make stand.

It's not exactly bluffing, if the NBA would resist they would absolutely get banned. That's why the CCP's ultra-aggressive way of applying pressure is so efficient, it's a reign of terror.

 

[Filthy Dangles]

Not to mention while they are within China's borders, any one of them could be arbitrarily detained for any reason.

Great point

 

[Voight]

Also, how much can China really impact the NBA financially? And vice versa, China has to be making a **** ton off of them, no?

The answer -

 

[Kshahdoo]

It's not exactly bluffing, if the NBA would resist they would absolutely get banned. That's why the CCP's ultra-aggressive way of applying pressure is so efficient, it's a reign of terror.

I bet, it's not just because of Hong Kong protests, but the whole situation between US and China. Hong Kong was just an occasion, because Chinese leaders saw a good opportunity to retaliate. And here we should recall, who did start this trade war...

 

[Lindberg]

Ah yes always remember that money should come before morals.

 

[Quid Pro Clowe]

Interesting, I heard the NBA profits 7 billion annually domestically and only 300 mil from China. How could that loss represent a 15% reduction in cap??

Nba should have never exposed their players to this with what's going on over there. Should have "postponed" it a couple months ago.

 

[LadyStanley]

Also, how much can China really impact the NBA financially? And vice versa, China has to be making a **** ton off of them, no?

As posted on the first page, China/Chinese fans putting ~$4B or so in NBA coffers.

 

[mouser]

As posted on the first page, China/Chinese fans putting ~$4B or so in NBA coffers.

A lot of those numbers being tossed around are net values, multi-year contracts and businesses the NBA owns or has a share of in China. It’s tricky to find an actual annual contribution amount to NBA revenue. The teams discussing a possible 10-15% cap decrease might be the best hint at the real values.

 

[Kiwi]

Interesting, I heard the NBA profits 7 billion annually domestically and only 300 mil from China. How could that loss represent a 15% reduction in cap??

Nba should have never exposed their players to this with what's going on over there. Should have "postponed" it a couple months ago.

There's to much money on the line for them not to go, that's a gigantic market that's got disposable income and a rapidly expanding middle to upper class

They come off as gigantic hypocrites and people will ridicule them when they come out on social issues in the States but billions of dollars can sooth a lot of hurt feelings I'd imagine

 

[Quid Pro Clowe]

There's to much money on the line for them not to go, that's a gigantic market that's got disposable income and a rapidly expanding middle to upper class

They come off as gigantic hypocrites and people will ridicule them when they come out on social issues in the States but billions of dollars can sooth a lot of hurt feelings I'd imagine

Just going by the profit numbers, it seems like a convenient excuse for the owners to pocket more profit and give less to the players. Though I'm sure it's more complex than I see it on the surface.

 

[Ted Hoffman]

I bet, it's not just because of Hong Kong protests, but the whole situation between US and China. Hong Kong was just an occasion, because Chinese leaders saw a good opportunity to retaliate. And here we should recall, who did start this trade war...

No, this is pretty explicitly about Hong Kong. China by and large doesn't give a shit about the trade war, but a few things will draw immediate ire:

1. Mentioning Taiwan as not being part of mainland China in any way
2. Supporting Tibet as not being part of China in any way
3. Supporting any kind of protest against the Chinese government
4. Criticizing the Chinese government in practically any way, especially when it comes to human rights.

 

[LadyStanley]

4b: Mentioning intellectual property rights

 

[Albatros]

4b: Mentioning intellectual property rights

Actually I would say a lot of people in China agree on this, and don't want their country to produce inferior copies of foreign things.

 

[JackSlater]

Actually I would say a lot of people in China agree on this, and don't want their country to produce inferior copies of foreign things.

Having worked in a Chinese owned company, dealt with hundreds of Chinese people through work, and gone to various times for work purposes, I don't think so. The attitude toward stealing or originality is surprising to encounter. I've heard stealing referred to as "smart strategy" too many times to keep track of.

 

[Albatros]

Yeah, but that's just a practical matter of making easy money. They're not going to get offended by the idea of China having to make its own research and development, in fact it's a growing part of their nationalism. A few years ago no one in China would have preferred Huawei over Apple, but that has been changing.

 

[LadyStanley]

CNN Reporter Shut Down for Asking NBA Stars About China Scandal

I'm thinking this reporter was in China, not US, when he asked his question of the two Rocket players.

NBA China is worth an estimated $4 billion, according to Forbes. The Rockets may lose between $10 million and $25 million in missed business deals as a result of that single tweet.
Both Rockets stars, James Harden and Russell Westbrook, have business interests in China and both apologized to the communist country after Morey’s remarks.

More $$s and ??s.

 

[Voight]

Well, add LeBron to list of people doing the CCps bidding. This was a great chance for James to be bigger than basketball but he chose the $$$$.

What a crappy cop out. This is really sad to see, it’s really not as complex as Kerr and now LBJ are trying to make it seem. You don’t need to be a history prof or career diplomat to know what’s going on.

 

[mouser]

Multiple articles out today with takes from the players only meeting between the Lakers and Nets in China. I fully agree with the reported player complaints that they expected the NBA to set a lead with the tone and conversation that the players could then draw on.

Don’t know if this is the best article, but one that covers the issue:

LeBron James, Kyle Kuzma spoke up at players-only meeting in China, some members of Nets, Lakers wanted to cancel games

The concern among those in the room, sources have told The Athletic, was that the Chinese government had limited Silver from speaking publicly while in Shanghai by cancelling his press conference at the arena and thus the onus would have been thrust onto the players to carry the torch for the league.

Lakers star LeBron James spoke up in front of everyone in the room and stated he believed that Silver and the NBA needed to explain and articulate the situation first, before the players would have to, multiple sources with direct knowledge of the meeting told The Athletic. James expressed concern that without the league being able to speak to media to address all of the questions and dynamics about China and the NBA, it was unfair for solely players to bear that responsibility.

 

[EpochLink]

Ouch, Lebron is getting hammered on social media now..

 

[HisIceness]

After seeing LeBrons comments

 

[Centrum Hockey]

A lot of those numbers being tossed around are net values, multi-year contracts and businesses the NBA owns or has a share of in China. It’s tricky to find an actual annual contribution amount to NBA revenue. The teams discussing a possible 10-15% cap decrease might be the best hint at the real values.

Its unlikely but a two team expansion bid process could be used to recoup some of the lost revenue from china if the situation continues. The expansion fee would probably be around 1.5- 2 billion

 

[Voight]

Ouch, Lebron is getting hammered on social media now..

Rightfully so. He's acting as another mouthpiece for the CCP, despite claiming he's more than an athlete and bigger than basketball. There is no better time to stand up then right now and he folded.

 

[Albatros]

Not folding would cost him millions, and cost all of his colleagues millions, I imagine not making him a very popular guy in the room or any of the rooms of the league.

 

[Voight]

Not folding would cost him millions, and cost all of his colleagues millions, I imagine not making him a very popular guy in the room or any of the rooms of the league.

Because any of these guys are short on money? Look they get paid millions with or without China, the 12th man who makes "only" 2 million isn't making any money off of China anyways.

LeBron can certainly take the financial hit, being bigger than sports implies you are willing to go outside the lines and forego any potential money. He would still be making nearly 40 million from the Lakers, that much or more from Nike plus all of his other endorsements.

He's a sell out for the CCP because he gets paid millions to be pro-China. I wonder if Xi approved his remarks beforehand.