In the NBA vs. China battle, business could suffer

Automatic TRANSCRIPT

We begin today with the not entirely idle speculation of what James Naismith would think of the sport that he invented low these one hundred twenty eight years ago and the global economic context in which it finds itself we are of course a long way from the peach baskets that Naismith used as the original hoops and the global economy is nothing like it was in eighteen ninety one but a quick glance at the news sports or otherwise reveals basketball as the pivot point perhaps the biggest corporate story of this day National Basketball Association in the aftermath of a tweet from Houston Rockets General Manager Daryl Morey last week supporting anti-government protests in Hong Kong the response from Beijing has been swift and clear an NBA fan event before a preseason game between the Brooklyn Nets and La Lakers in Shanghai has been cancelled a public training session for the nets also in Shanghai I also called off corporate Chinese sponsorships with the NBA Undone meanwhile the NBA Commissioner Adam Silver says Moore he has the right to exercise his freedom expression it is a big big deal the story with peril plenty so we got marketplaces and you're on the line to hash things out with US hey hey solar this is kind of basic but clearly it seems the basics have been lost in this the NBA has been for decades now one of the most progressive of profession all sports leagues do you suppose that somehow they didn't see something like this coming and if they didn't see it why didn't they see what will that's the and you're getting right to it right the difficulty here for the NBA is indeed it does want to be seen as a progressive league doesn't want to go off brand but the NBA also has to be three of its brand in China the brand is tarnished in the eyes of Chinese businesses of consumers that's GonNa prove difficult and costly for the NBA amity in China this is something that every American Sports League is GonNa take note of because they all see the money in China they want to do business there and even spoke with a sports marketing professor from China he kept telling me that the everyday business of sport in China it's market based right it's similar doing business in the as we all know that we've heard that one hundred times then he said just to be sure not to get on the wrong side of the government because then the market gets thrown out the window well that's that's so interesting so clearly the calculation that's happened here is that the Chinese government has decided it does not need the NBA's brand new basketball in China right because they're grown they're leagues and and they can in essence do with themselves no matter how popular Yao Ming in the Houston Rockets and all of those folks are over there but the NBA is it is the brand right Chinese basketball is NBA China basically when Yao Ming came onto the scene in two thousand and two the celerity of basketball in China skyrocketed because you had to do out there who looked like them you had two hundred million people watched that first game it's going to be so difficult for the Chinese government if they just want to say look we got this we're GonNa have basketball basketball is great here we have all sorts of stars it's going to be so difficult because the other thing is Americans who don't make it to the NBA go and play in China and so there's so much sort of meshing there with the NBA in China that's going to be so difficult for the Chinese to be able to do that let us take this away from basketball for two seconds because you're NBA is certainly not the first company that has run into trouble in China today there was a controversy with apple in one of its APPs let's people identified police in Hong Kong and the Chinese government is displeased with that there is wider risk there is also wider acknowledgement of some of the challenges of doing business in China tipping point do you think I mean you know spitball that for me that's what I kept asking the smarter people than I am about this when you're talking about sort of Chinese relations and things like that and it's funny because everybody that I spoke with says you know what these are hiccups and businesses are going to have to do better at navigating business in China nobody is saying they're going to pull out of China no business person thinks that because there's so much money there they just don't see an American company just pulling out because of difficulties so instead of let's get out of here this is a tipping point we don't want to deal with China it's figuring out how to do business better there and dealer cover sports in a bunch of other stuff force advocate ut in Austin Texas andy thanks a bunch appreciate it you got a

Coming up next