The NBA's successful business model

Western economics personal design

2011073145 Gao Wenjun

NBA - Basketball Business Empire

NBA is the abbreviation of the National Basketball Association. The richest of the four major professional sports organizations in the United States – baseball, football, ice hockey and basketball – with annual revenues of more than $4 billion, the NBA is not the most watched league in North America, but it is the world's most global and influential professional sports organization, now broadcasting games live to 212 countries in 42 languages and 750 million families watching NBA games. The stories of NBA heroes such as McCann, Chamberlain, Russell, Jordan, O'Neal, Yao Ming, etc., can almost be said to be household names.

The most successful marketing

The NBA is often featured as a success story in business school marketing tutorials about how the NBA uses the brand of big-name stars to promote the league, how to use modern media to promote the league, and how to use internationalization strategies to go global, and they mold NBA president David Stern into the best salesperson in the world.

At the end of 2005, Forbes, a well-known financial magazine in the United States, made a special report on NBA business: The Business of Basketball. In this special report, which provides a very detailed look at the NBA's business in recent years, Forbes first focuses on the average value of the NBA's 30 teams in 2005 of $326 million, an average growth rate of 9%.

Twenty years ago (1984), the NBA's market value fell to $15.5 million, and 17 of the 23 teams were on the verge of bankruptcy. Donald Katz, a well-known American sports journalist, wrote at the time. It was also in this year that David Stern, a lawyer-turned-New Yorker, was appointed as the fourth president of the NBA. "He turned everything around ......," Katz wrote 20 years later.

How did Stern build today's spectacular basketball business empire?

mercila operation)

Strategy 1: Global promotion

Strategy 2: Strong market partners

Strategy 3: "Star-making" campaign

Strategy 4: Unlimited product extension

Strategy 5: Be keen on public welfare

Strategy 6: Advanced system

Passionate about public welfare

undertaking

NBA games with players

Global rollout

"Star-making" movement

The products are unlimited

extension

Market cooperation

partner

Advanced system

NBA's market operation model and resource list

There are 6 related business areas that operate around NBA games and athletes

Each part drives the success of the overall brand and provides a broad resource for partners

Strategy 1: Global promotion

A global competition, a global sports league

The league currently has a record 76 players from 31 different countries

NBA games are broadcast in 215 countries around the world in 43 languages

Every year, the NBA hosts exciting events on every continent

With 15 overseas offices, including 4 offices in Greater China, and more than 100 employees, the NBA spares no effort to promote basketball around the world

10 non-English NBA official websites including /China

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Strategy 2: Strong market partners

The NBA now has two very valuable television contracts: the NBA's cable contract with TNT, which lasted for $2.2 billion over six years from 2002-03 to 2007-08; The NBA's network TV contracts with ABC and ESPN cost $2.4 billion over six years from 2002-03 to 2007-08. The three totaled $4.6 billion over six years.

The NBA's ad revenue is much more than that. Now the alliance's sneakers and sportswear partners include Adidas, Nike, Reebok, Coca-Cola for drinks, McDonald's for food, AOL (AOL) for the Internet, Disney and Time Warner for entertainment, and even children's toys are sponsored by Lego. In the 2005-06 season, the NBA's global market partners reached 17. As of 2005, the NBA has as many as 6 market partners in China.

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NBA International Partners:

adidas

coca cola

EA SPORTS

nike

Reebok

Spalding

Partners

NBA Overseas Partners (in select countries):

Amway AMAY (China)

Peak (China)

***CHINA MOBILE

Li Ning (China)

McDonald's (China)

Nokia (China)

Red Bull (China)

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Strategy 3: "Star-making" campaign

Generations of NBA owners have understood the value of stars to the market.

In the 90s, "Magic" and "Big Bird" retired one after another, and it happened that Jordan came out to fill the vacancy, so Stern used Jordan as the main star to promote the NBA around the world. Once again, the strategy worked wonders, as Jordan's charming smile, classic tongue-sticking moves, and mythical technique conquered fans all over the world, including basketball players from other countries, making the NBA a truly international league.

Michael jordan

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