HoopsHype Business rumors

October 20, 2014 Updates
October 18, 2014 Updates

It will cost you $411.17 on average to watch LeBron James and the Cleveland Cavaliers play on the road this year, according to a study by TickPick, a no-fee secondary ticket marketplace. The study looked at average prices as the visiting team for the upcoming season. HoopsHype

October 17, 2014 Updates

In a dramatic expansion of their ownership group, the Milwaukee Bucks will announce Friday that five prominent African-American business leaders and philanthropists, as well as two well-known Milwaukee business executives, have joined the franchise. Their addition gives Bucks owners Wesley Edens and Marc Lasry and new investor Jamie Dinan, whose ownership stake had not been widely known, enhanced credibility as they continue to work not only on rebuilding the franchise but also on setting the stage for what is expected to be a major downtown economic redevelopment project. While specifics of what the three have in mind beyond building a new arena have yet to be disclosed, the Bucks made a point in their announcement to say that members of Partners for Community Impact, or PCI, had previously been involved in urban economic development and renewal projects. Milwaukee Journal-Sentinel

The N.B.A. is fortunate that basketball’s broad appeal transcends national lines. Even Xi Jinping, China’s president, is a fan — he took in a Los Angeles Lakers game in the United States in 2012. The league has been able to promote its brand through cooperation with the Chinese government at its highest levels. “It wasn’t that long ago when people spoke of Ping-Pong diplomacy, but I think we’ve now entered the era of basketball diplomacy,” said David Shoemaker, chief executive of N.B.A. China. New York Times

October 16, 2014 Updates

More likely for now is that the NBA will allow advertising on team jerseys, said Silver, who was on his second visit to China since becoming commissioner in February. Ads on uniforms will boost the NBA’s global growth, he said. “It would cause a whole host of companies to become that much more invested in the NBA,” Silver said. “Just think about it -- if there was a Chinese company that was represented on an NBA jersey, and for the affinity of Chinese fans to see that familiar brand on an NBA team -- that’s going to help grow the game here.” Bloomberg

October 15, 2014 Updates
October 14, 2014 Updates

According to various reports, the players want a higher percentage of BRI in light of this new television deal, and the owners want to lower that percentage even further. The players had a 57 percent share of BRI in the previous CBA. This disagreement seems to point to a potentially cataclysmic conflict. "The owners are going to be in for a long winter," one source close to the union said about the possibility of players giving back any percentage of revenue. "It's inconceivable to me given the give ups in the last deal that owners will seriously come back and want to have more. It ain't happening." VICE

But would the middle and lower classes of the National Basketball Players Association (NBPA) be willing to potentially sacrifice a season for provisions that would not affect them? Not likely. They make up the majority of the NBPA, and the fight will revolve around their needs, with the star players playing a visible, albeit removed role. "What's the basis for changing them?" the source close to the union said of eliminating max contracts. "That area is working fine." He added: "I don't think those kinds of issues are likely to be the focal point. I think the focal point will be the split over revenues and over licensing rights." VICE

Sources familiar with the TV deals admit both networks pushed hard to be allowed to sell ads on team jerseys outright, but the league balked at handing over the potentially lucrative rights. Under the new TV deals, NBA teams maintain the rights to sell the jersey advertising, which has an estimated value ranging from around $800,000 for small-market teams like the Memphis Grizzlies to more than $10 million for large-market teams like the Los Angeles Lakers. Sports Business Daily

However, Amar’e Stoudemire expressed a view that might become a sticking point for players: wearing a brand on the jersey that clashes with a sponsorship deal the player already has. “It all depends on the players,” Stoudemire said before Monday’s preseason home opener against the Toronto Raptors at Madison Square Garden. “A lot of players have endorsement deals. So it could be a conflict of interest, if you ask me. It depends on the company I’m in bed with. I could be endorsed by a company that’s not sponsored by the NBA, so that could be a conflict of interest.” New York Daily News

October 13, 2014 Updates

The union is not likely to go quickly when assessing the relative pros and cons of such a proposal. With new National Basketball Players Association Executive Director Michele Roberts less than two months into the job, there's a need both for management and the rank and file to take stock -- not to mention the high-profile and powerful agents who would need to be persuaded not to act in their high-profile and powerful players' interests. "Contracts don't have to be guaranteed, anyway," one prominent agent texted over the weekend. "They can decide who receives guaranteed contracts in every negotiation." "True," I texted back. "But you wouldn't let none of your guys be the guinea pig going forward." "No sir!" the agent replied. NBA.com

October 11, 2014 Updates

The National Basketball Association, which recently inked a lucrative media rights deal, will increase its marketing budget as it looks to lure more casual fans, according to the league's new chief marketing officer. Some of the new spending will back the league's season-long campaign, which debuts Saturday and will run on a broader set of networks than in years past, said CMO Pam El, who joined the NBA in August after stints at insurance companies State Farm and Nationwide. "We are going to be much more aggressive with our marketing. We want to go after a larger fan base," she said in an interview. Advertising Age

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