Gaffer’s Banter

Odd Couple: Premiership and NBA

Various sources have reported a commercial wedlock is on the table between the English Premiership and NBA.  Why? Well, the Premiership have so obviously come short in milking the possible revenue in international markets as compare to the NBA.  Whereas the NBA albeit coming strong in local sponsorships and marketing events (especially grass-roots), have they really had actual success in a revenue generating perspective?

The Premiership made $50US from selling the China broadcasting rights to pay-tv operator, WinTV.  So what have NBA made since their free content distribution ended?  Have they been that profitable with both broadcasting fee and sponsorships?  To be honest, NBA had got it right. Their strategy from the beginning in entering China and other international markets have always been on the right track. However, it is the lack of localization since, that have halted their expansion into an actual steady profit generation mode.

Most Asian countries have an enormous following in both football and basketball.  Also, most nations in this region have terrible national teams and leagues in both these sports.  We all know that.  So why hasn’t any of the successful western leagues been able to setup anything different or groundbreaking in these countries?  Of course they have tour matches, as Manchester United is about to play pre-season friendlies in China, Malaysia, Indonesia, and Korea during this summer.  It makes a lot of sense for these big clubs to do so with lots of money going into their pockets.  These tours do nothing for the long term development for the sport.

NBA is extremely talented with the sponsored sports clinics and tournament shows in China. These class acts have enormous coverage and are loved by sponsors.  However, they all lack participation because they are watched but not played by millions of potential fans.  So, surely the sponsors are happy with the exposure.  This is the same as for live matches of NBA and the Premiership, because they don’t lack fans; they lack profitable interaction with them.  Without continuous participation, it is hard to develop long term hardcore fans.  And it is these hardcore fans who will take the sport, league and the sponsored brands in their respective communities into new heights.  You want all ages and levels to be playing, so that the sport is part of their daily lives.

So I guess it is just another news blip.