On July 6, 2021 at Phoenix Suns Arena in Phoenix, Arizona, NBA Commissioner Adam Silver speaks to the media prior to the Milwaukee Bucks’ game against the Phoenix Suns in Game One of the 2021 NBA Finals. Getty Images | National Basketball Association | Garrett Ellwood Despite the fact that relations between the United States and China remain high, the National Basketball Association hopes to bring the two countries together through its product. On Tuesday, NBA commissioner Adam Silver addressed the media before Game 1 of the 2021 NBA Finals, addressing the league’s “bigger geopolitical challenges” as two global giants dispute. Trade, finance, and technology are all areas where the US and China disagree. Government authorities rejected the idea of a “new cold war” on Tuesday. Silver also stated that the NBA should play a positive role in the feud. “I believe it is critical, especially when tensions between governments are high, that we foster these sporting, educational, and cultural links,” Silver added. “That’s something I’ve said from the beginning. By no means does this imply that we are endorsing anything that occurs in China. We are, at our core, an American corporation, and as such, we adhere to US government policy.” Because its China operation is worth more than $5 billion, the NBA is interested in finding common ground. Tencent, a Chinese tech company, has a $1.5 billion media rights arrangement with the company. NBA games were also broadcast on state-run CCTV, however the partnership was shattered in 2019 as a result of Twitter comments made by Philadelphia 76ers CEO Daryl Morey. During last year’s NBA Finals, CCTV briefly broadcast games starring the Los Angeles Lakers, who are still famous in China because to Kobe Bryant. This season, though, games were once again withdrawn from the network. When asked if games for the NBA Finals showdown between the Phoenix Suns and the Milwaukee Bucks have resumed, the league did not respond to a CNBC request for comment. Nonetheless, Silver believes that the NBA will continue to distribute its games in the United States for the foreseeable future. He stated that exhibiting games might be beneficial “”play a productive role” in helping residents in the United States and China “have a better knowledge of each other, and see that we’re all human beings with commonalities.” And I believe that kind of participation is vital if we’re going to work together to address some of our problems.” On October 9, 2019, in Beijing, China, a Chinese flag is displayed on items in the NBA flagship retail store. Getty Images/Kevin Frayer One of the difficulties highlighted by Silver was Covid-19. The virus’s delta version is creating anxiety around the world, prompting President Joe Biden to urge more Americans to get vaccinated. Other concerns that the NBA can help with include the global climate, economic challenges, and human rights, according to Silver. “They have to start with frank dialogues with each other,” Silver said. “I believe that, as I have stated, sports provide a common platform on which we may at least find agreement. I continue to think that we can make a difference.” However, while the NBA works to rebuild its relationship with China, it has already begun to focus on other markets. In May, the NBA announced the opening of its Africa business, which is estimated to be worth about $1 billion. NBA Africa will manage the expansion of the NBA’s newly founded Basketball Africa League. When asked about the NBA China and NBA Africa’s similarities, Silver said: “There are some structural parallels in that we’ve taken a geographical area and split it out into its own entity, then recruited strategic partners because we believe that’s the best way to expand. However, I believe the analogy ends there.” According to the United Nations, Africa is one of the world’s fastest-growing marketplaces, with a population of 1.07 billion people living in Sub-Saharan Africa. In 2010, the NBA established its African headquarters in Johannesburg. On July 06, 2021 in Phoenix, Arizona, Chris Paul #3 of the Phoenix Suns brings the ball up court against the Milwaukee Bucks during the second half of Game One of the NBA Finals at Phoenix Suns Arena. Getty Images/Chris Coduto Silver also indicated league income had recovered from 2020 during his Tuesday media appearance, adding that the NBA “performed somewhat better than we initially predicted.” After the pandemic hit last March, the NBA’s revenue streams were frozen, and the league lost nearly 40% of its revenue as fans were unable to attend games. The re-opening, on the other hand, has benefited teams, particularly those in the playoffs, because postseason money is more lucrative. ESPN, the NBA’s largest media partner, revealed that league revenue for the 2019-20 season fell to $8.3 billion. Morey’s tweet cost the company $200 million, with another $400 million in sponsorship and merchandise losses. According to The Business Journals, the NBA made $8.8 billion in the 2018-19 season. “We don’t have the precise numbers yet,” Silver said of revenue from this season’s 72-game schedule. “But maybe we’ll be down around a third in revenue, somewhere around there, instead of 40 percent.” The NBA, on the other hand, should benefit because revenue from Dapper Labs, particularly NFT-related licensing money, helped it stay viable. According to IEG, a sports partnerships advisory organization, the NBA made a record $1.46 billion in sponsorship revenue. In addition, various club sales enhanced franchise values, while other investment vehicles provided liquidity to NBA owners and minority partners. As a result, the NBA cannot claim to have gone bankrupt during the pandemic. “I think we’ll have weathered it pretty well if things remain on pace and we can move into a new season next year that looks a lot more like typical,” Silver said. After a 118-105 victory, the Suns claimed a 1-0 series lead against the Bucks. The NBA Finals continue on Thursday in Phoenix with Game 2. After the lowest Game 1 ratings since 1994 in October, the NBA is hoping for more viewership this year for the Finals./n
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