How much will the NBA lose after launching the most expensive Twitter in history?

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Source: China is a through train
Author: Sun Zhongyi
Original title: How much will the NBA lose after Twitter, the most expensive in history?
The Twitter of NBA Rockets General Manager Morefa is probably the most expensive one in history: one Twitter cost the Rockets hundreds of millions of dollars. The NBA President Adam Xiaohua’s support for him may cost the NBA more.
China News Agency reporter Wang Huanzhan
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After Morey’s improper comments on Hong Kong on October 6, according to incomplete statistics, as of the time of publication, seven enterprises and institutions, such as China Basketball Association, Li Ning, Pudong Development Bank, You-Me Loan, Pick, Mitsubishi and Waterborne Ketian, have announced the suspension or termination of their cooperation with the Rockets.
More than five domestic media and platforms, such as CCTV Sports Channel, Tencent Sports, Tiger Pop, Live Bar and Dunk Magazine, have announced the suspension or termination of broadcasting and reporting on Rocket Team events.
CCTV Sports Channel declared that Morey, general manager of the NBA Houston Rocket Club in the United States, disseminated improper remarks concerning Hong Kong. We strongly oppose this and decided to suspend all cooperative exchanges involving the club’s event broadcasting from now on.
Li Ning Brand issued a statement: In response to Houston Rockets General Manager Morey’s wrong comments on personal social platforms, we express great indignation and strong condemnation! Li Ning Company resolutely opposes and resists all acts harmful to national interests. We have suspended our cooperation with the Houston Rockets and will continue to urge them to give a clear response to the incident.
Pudong Development Bank issued a statement: Pudong Development Bank Credit Card Center expressed strong protest and opposition against the mistaken comments made by Houston Rockets General Manager Morey on personal social platform. The dignity of the motherland is above everything, and the sovereignty of the motherland can not be challenged! Pudong Development Bank Credit Card Center has suspended relevant market activities and publicity, and continues to urge the Houston Rockets to conduct a thorough investigation of the incident and give a reasonable response.
On October 7, Taobao, Jingdong, Suning, Pingduo and other e-commerce platforms have quietly stepped down from the rocket team products.
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How much will the Rockets lose if these sponsors quit?
It is impossible to find specific information about these contracts through open channels, but from the figures 17 years ago, every business would be worth millions of dollars.
After Yao Ming joined the Rockets in 2002, Yanjing Beer took the lead in signing a six-year, $6 million sponsorship contract with the Rockets.
Before 2017, the Chinese sponsored brands of the Rocket Team were maintained between 4 and 8 all year round. Pick, Founder Group, Anta, Kunlun Lubricant and other domestic brands sponsored the Rocket Team. At one time, brand sponsorship from China accounted for 8-10% of the total revenue of the Rocket Team sponsorship. After 2017, the Rockets have accelerated the development of the Chinese market, hoping to increase the number of Chinese sponsors to 12, accounting for 20% of the total revenue.
According to rough estimates, losing the Chinese market, the Rockets will lose 400 million yuan annually.
Left 1: Adam Xiaohua’s picture is from Sino-Singapore.com
NBA President Adam Xiaohua also said: “There is no doubt that the economic impact has been obvious, that Twitter has had considerable consequences.”
But the president and Morey made the same mistake, and the second half of the sentence involved the whole NBA. “I’ve also read some media hints that we don’t support Morey, but in fact we support him,” he said. As a value-based organization, I want to make it clear that the way to support Morey is to enable him to exercise his freedom of speech.
After Xiao Hua’s statement, CCTV Sports Channel said: immediately suspend the current broadcasting arrangements of the NBA pre-season (China Tournament) and immediately investigate all cooperation and exchanges involving the NBA.
Although the NBA has not provided specific earnings data, it estimates that the league’s annual net profit is about $1.8 billion.
As the largest overseas market of the NBA, China will contribute about US$150-200 million net profit to the NBA every year, accounting for about 10% of the total revenue of the NBA. But in fact, if we make a detailed analysis, the NBA’s benefits in China will exceed that figure.
The sale of broadcasting rights has always been the most important event for NBA officials. In July this year, Tencent Sports has completed a contract renewal with the NBA. It is reported that the renewal amount is 5.15 billion US dollars, which is estimated to be 10.7 billion RMB at the current exchange rate. If the costs of TV, short video and other broadcast rights are added together, the annual revenue of NBA’s optical broadcasting costs in the Chinese market will reach 400 million US dollars.
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In retrospect, the Rockets’market in China can be described as its largest overseas market, with numerous sponsorships in China over the past 17 years.
Sohu Sports has a chart that counts the Rockets’income from 1998 to 2010. It is not difficult to see that the impact of Yao Ming’s existence on the team’s overall income and market value is totally surging. And behind Yao Ming is the power of the Chinese market.
When Alexander bought the Rockets in 1993, it cost only $85 million to become the owner of the team, which became one of the most profitable teams in the League after the 21st century.
The turning point was in 2002, when the Rockets won only 28-54 in that season, the third worst result in the team’s history. It is reasonable that the market value and income of the Rockets will have great turbulence in this year.
However, Yao Ming’s landing in the NBA in the summer of 2002 saved the rocket’s bleak market. His arrival triggered a wave of watching among Chinese fans, and the team benefited a lot from his income in broadcasting and tickets.
The economic impact of Yao Ming at the beginning of the 2002-03 season and the team’s warming record have not reduced the team’s market value, but increased to $255 million.
Since then, the Rockets’revenue and market value have been soaring, becoming one of the most profitable teams in the league.
The significance of Yao Ming and Chinese elements to the Rockets proved their importance in an alternative way in 2010.

Yao Ming was injured in the playoffs in 2009, which led to the complete reimbursement of the following 2009-10 season. After a brief comeback in 2010-11 season, Yao Ming was injured again, which led to the reimbursement of the season. This has a huge impact on the Rockets’revenue, which is the only time in the past 10 years that the Rockets have seen revenue decline, and the team’s market value has also been reduced.
News Agency reporter Wang Huan took a photo at Yao Ming’s retirement ceremony
From this point of view, we can see the influence of Yao Ming and the Chinese market on the Rockets. Later, though Yao Ming retired, the Rockets remained one of the favorite teams of Chinese sponsors.
In 2017, the Rockets earned $244 million in marketing revenue, ranking seventh among the 30 NBA teams. In 2018, the Rockets’turnover increased by $50 million to $296 million, ranking fourth in the league.
Yang Yi, the commentator, said, “You can’t eat China and scold China because it’s not rough.”