Last night, NBA Chairman Xiao Hua’s statement completely broke the NBA’s Chinese market.
Editor’s note: This article is from WeChat public number” puffer film Archives “(ID: htysda) , author: A bellflower away.
Xiao Hua made a sound again yesterday afternoon, but the public opinion is not changing.
If the Morey incident only affects the Rockets, then NBA Chairman Xiao Hua’s statement last night completely broke the NBA’s Chinese market: stop broadcasting, sponsors quickly retreat… “No doubt, economically The loss already exists.” Xiao Hua’s statement mentioned that “Morey’s Twitter has caused quite serious consequences”.
After today, the NBA’s related economic losses will continue to expand, including not only the NBA itself, but also a large number of domestic participants. The NBA has been deeply rooted in the country for many years and has formed a complete industrial chain, from broadcasting to derivative to sponsorship and cooperation. For the NBA, which accounts for 90% of local revenues, it seems that it is not difficult to give up the Chinese market, but it does not mean that they are willing to give up the layout for many years. Thousands of domestic upstream and downstream practitioners who rely on it to survive are becoming more and more difficult.
China’s income is only 10%,NBA is not afraid to give up the Chinese market?
The most direct income of the NBA is mainly for tournament tickets, advertising sponsorship and broadcast rights. Among them, the income of the broadcasting rights has always been a big part of it. More than 30 years ago, former NBA president Stern was granted free rights to CCTV in order to introduce the NBA into China, and the proceeds were meager. But now the NBA’s broadcast fee has risen. In the last cycle (2015-2019), Tencent Sports spent $500 million to sign the NBA live broadcast rights. It is necessary to know that the cost of digital copyright when Sina Sports broadcasts the NBA is only $7.5 million per year. Just in July, Tencent Sports renewed the NBA2020-2025 live webcast right with a price of $1.5 billion. Compared to the previous cycle, the price has almost doubled.
Although Tencent Sports hasThe NBA completed the signing ceremony, but in accordance with established practice, contracts with significant amounts are generally paid in batches. Now that the NBA is not properly spoken, Tencent Sports is very likely to stop making money. It is still a loss that cannot be ignored for the NBA. And the future abandonment of the broadcast rights in the Chinese market will also continue to increase this loss.
The second direct damage is the offline competition. The offline competition mainly includes tickets and sponsorship. In 2004, Stern arranged for the NBA preseason to be held in China to see China’s huge demographic dividend. NBA officials have made statistics, from Yao Ming to the NBA to retired, the NBA has added a total of 370 million viewers. Since then, it has been held in major cities in China almost every year. Before the Chinese competition, the teams coming to China will hold care activities. This year’s care event was scheduled for this afternoon, but has been cancelled. At the same time, many stars including Li Yifeng and Fan Wei made it clear that they will not attend this year’s NBA China Tournament.
The price of the ticket for the circle of friends has fallen. When the ticket was invoiced in early August, the ticket was sold out for one second, and the most expensive one was fired to more than 40,000. Today, it has been sold in the hands of the ox. If the situation is allowed to develop, the relevant events and activities of the NBA in China will inevitably be canceled, and ticket sales will no longer exist.
Besides the fans, there are sponsors. According to Rilakkuma Sports, since 2017, sponsor brands from China have been maintained at 4-8 per year, contributing 8-10% of total revenue (excluding broadcast fees and licensed merchandise revenue). The Morey incident has evolved to this day. After many brands such as Shanghai Pudong Development Bank, Li Ning, You and China Loan announced that they will stop working with the Rockets and the NBA, vivo also issued a statement this afternoon. In fact, it is reported that after 2017, the Rockets once hoped to increase the number of Chinese sponsors to 12, and the proportion of total revenue increased to 20%. Now that many brands have withdrawn, the NBA’s vision has been squandered.
There were not only NBAs, but also the star players in the event. Although Harden and Wei Shao took the lead to apologize, the NBA is bound to kill the players in China. Once upon a time, NBA star players are competing partners of major brands, mobile phones, sports, restaurants, and cars. Vivo has been looking for Curry endorsement, Lenovo and Kobe “marriage”, Anta with 8The price of 10 million yuan was signed for Wade for 10 years. Li Ning and Peak have also signed with NBA stars at a high price. The rise of the basketball theme variety in the past two years has provided an exposure channel for these stars.
But after the outbreak of the incident, the personal brand event meeting of James and others will be cancelled this afternoon. Under such circumstances, these stars have lost their appeal in the Chinese market, and the commercial value naturally disappears. At the same time, Taobao has already removed the Rocket-related derivatives, and the derivative areas such as apparel and shoes are also an important part of NBA revenue.
In fact, although the Chinese market only accounts for 10% of the total income of the NBA, after 30 years of development, China’s layout in the NBA is not only a money-selling market, but also the best place to open the Asian market. The actions of Morey and Xiao Hua clearly made the layout of the NBA in Asia hit hard. But because of the deep ploughing of the NBA in the Chinese market for many years, things have fallen so far, not only the Rockets or the NBA.
“Blocking” NBA side effects,Tencent Sports is a butterfly effect victim
After the invited artists in China announced their withdrawal from the fans night and the China-related events, the CCTV Sports Channel of the Central Radio and Television General Station subsequently issued a statement: Immediately suspend the current broadcast arrangements for the NBA preseason (China) , immediately investigate all cooperation and communication involving the NBA.
After less than two hours, Tencent Sports also announced that it will suspend the NBA preseason (China) broadcast arrangements from now on. But unlike CCTV, which plays NBA games for free, for Tencent Sports, the stop broadcast is not a simple statement, but also means real economic losses, perhaps $1.5 billion.
According to the blue media report, in the 2018-19 season, the NBA live broadcast and video programs reached 490 million times through the Tencent platform, which is nearly three times that of the 2014-15 season; more than 21 million fans watched In the sixth game of the 2018-19 season NBA Finals, the number of viewers in a single NBA event on China’s digital media platform was the highest.
Early, picking at Morey