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Lease on Paul Karen thank you so much we appreciate that well the tensions between the US and China are not limited to trade negotiators they now include the National Basketball Association very big issue now with China which is one of its big growth market to give us the latest welcome Scott Sasha Nick Scott covers all things sports related sports business for Bloomberg news you try to turn a Bloomberg interactive brokers studio so Scott this is a big big issue for the NBA give us the latest developments there well the latest is that CCTV has decided that they will and not time unless the Chinese have a television will not broadcast the exhibition games and you have lebron James they're ready to play of the Brooklyn nets of course owned by Joe tie they decided they will not broadcast so the next step we're waiting to see does the shoe fully drop with they just cancel the games altogether so it is set us up here what exactly prompted all of this tension Daryl Morey the general manager of the Houston Rockets who it's worth noting are the most popular team in China you remember way back when they drafted yell mingle became a star so the rockets have more of a stranglehold on China the business of basketball in China than any other team he quoted or or supported him show some support for Hong Kong and that did not go over well with the Chinese government and the NBA initially came out with a statement that tried to tow the line saying we're sorry we offended you but he's allowed to say woody's wants to say that didn't go over well either Adam silver the commissioner Lee has since come out with a stronger statement backing what they believe is right saying we will not interfere with our constituents right to say what they feel so that doesn't seem to have placated the Chinese government so you're caught between this growth market as you said the NBA has spent more time than any other leave we're talking decades now building the business in China they have a separate entity NBA China there so that a lot of time and money invested in China right now they're a logger heads as to how to solve this so it's interesting Adams over the commission the NBA to seems like as in a you know almost unwinnable position very difficult a balancing act here what is his next step do you think is he just waiting to see how the Chinese react or is there something more forceful that yeah I don't think the next step is that okay he's waiting to see the reactions to how do we want to proceed but I will tell you having known Adam for a long time and talked to plenty of people whose work for including federal judges they tell me and I I've seen this firsthand that Adams greatest strength is that he is an innate bridge builder he has that ability to bring people together this will be perhaps that however long the states commissioner the ultimate test of that ability so from a business perspective how lucrative could China potentially be for the NBA given how quickly it's been a sort of received so far let's just do some simple math let's say we take me and at its word and say there are six hundred million fans basketball fans in China let's say each of those fans decides you know I am going to pay for that thirty second snippet that the NBA is offering the final two minutes of the game and they fork over two dollars I think we would all agree that's probably conservative estimate that if your basketball thing you'll only spend two Bucks a year but you're talking more than a billion dollars just with that calculus alone they also have a fairly robust licensing business as a glorified licensing business and be a China so overall you are talking in the billions of dollars with a future promising much more and in particular again to the rockets Tillman for Tito who bought the team from Leslie Alexander did the calculus ahead of time he paid a record price at the time two plus billion dollars for the franchise with the promise of revenue coming from China you could foresee if you look ahead at this thing that the NBA comes back and and is embraced again however the Houston Rockets in that brand do not return to the place they occupy just a couple weeks ago so such as you mentioned the ownership of the rockets what it's been generally the response of the other owners in the league I know that Joe side the owner of the Brooklyn nets and full disclosure of personal friend of mine did make a public statement a public document available kind of trying to explain the Chinese side what's been kind of the ownership response as this might not surprise you crickets nobody is jumping it and I have spoken to a number of owners a number of CEOs and executives involved former executives with the rockets with the nets around the league they just don't want to weigh in they just don't know where this is going to go Joe has been the only one and perhaps by the way how for Judas with the NBA that he just took over as the controlling owner again if there is somebody that who can perhaps bridge these two worlds and by the way as I look forward as a business of sport benefit is in franchise if they're all hearts and minds to be one Joe tie can make it happen what's China's incentive to go back on the hard line that they've taken the fans love their basketball I mean they really do it's a basketball loving country so you you have to I would assume at some point as we all know these fears to die down and you see what you can extract from the NBA in return for doing so but do you have a sense that there is sort of a mood of protest among people who realize that they may not be able to watch the exhibition games not yet because how do we know we know the social media in China I'm hearing from our folks there and from friends who have business associates there is in line with the government that they're they're upset that they're they're actually incentivized to come out and agree with the government they were angry with the NBA but as David stern taught me long ago during the lockout no walk down Seventh Avenue the guy who leans out of the window and give them a middle finger and tells them you know you can go where he's I don't worry about that person because that that the motion yet is how you know they'll come back Scott sassenach thanks so much for giving us thought here on this and be a issue in China Scott sassa Bloomberg news covers all sports he also hosts Bloomberg business of sports on Bloomberg radio can hear that at Friday evening at eight PM and Saturday morning.

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