NBA looks to China for growth, renewing a foothold in its second-largest market
News Summary
The National Basketball Association (NBA) returned to Macao, China, in October 2025 for preseason games after a six-year hiatus, marking a significant milestone in rebuilding its relationship with its second-largest market. This return aims to unlock future growth in China amidst declining television viewership in the U.S. In 2019, comments by then-Houston Rockets general manager Daryl Morey regarding Hong Kong protests triggered an international crisis, leading to the NBA's virtual absence from Chinese airwaves for three years and the loss of most Chinese sponsors. Demand for the return was high, with tickets for the Macao games fetching over $3,000. The NBA also announced a renewed partnership with Alibaba, making its cloud unit the official cloud computing and AI partner for NBA China, utilizing Alibaba platforms for content and merchandise. Nets owner Joe Tsai also owns Alibaba. The NBA boasts a massive fanbase in China, being the most-followed sports league on social media with 425 million followers. The league has also invested in infrastructure, opening flagship stores, kids' stores, and e-commerce platforms, with over 5,000 partner retail stores nationwide. Both the league and individual teams are actively engaging through community outreach and partnerships with marketing firms like East Goes Global to localize content and deepen fan engagement in the Chinese market.
Background
In 2019, then-Houston Rockets general manager Daryl Morey's comments supporting Hong Kong protestors ignited an international crisis. This led to a severe backlash from China, including the cancellation of broadcasts, withdrawal of sponsorships, and cessation of merchandise sales. For the subsequent three years, the NBA was effectively 'exiled' from the Chinese market, suffering significant blows to its revenue and brand influence. Despite this, the NBA's history in China dates back to the 1970s, with 48 games played in China by the NBA and USA Basketball since 1979. China has consistently been one of the NBA's most crucial international markets outside the U.S., boasting a massive fanbase. In recent years, as the NBA faces challenges from cord-cutting and changing viewership habits domestically, growth in international markets, particularly China, has become increasingly vital for the league's future strategy.
In-Depth AI Insights
1. Beyond immediate revenue, what are the deeper strategic imperatives driving the NBA's aggressive re-engagement with China, particularly in the current geopolitical climate? Beyond short-term revenue and market share recovery, the NBA's persistence in China reflects multiple strategic intentions: - Soft Power Projection & Brand Resilience Test: Amidst U.S.-China tensions, the NBA's successful return, evidenced by high ticket prices and sponsorships, demonstrates the potent penetrative power of its cultural product as a soft power tool. This proves that its brand can overcome political obstacles through sheer market attractiveness, offering a "resilience" blueprint for other Western brands impacted by geopolitics. - Hedging Against Domestic Market Saturation & Decline: With the rise of cord-cutting and changing viewership habits in the U.S., the NBA faces declining ratings. China's enormous population base and passion for basketball provide an indispensable growth engine, effectively hedging against potential saturation and decline risks in the domestic market. - Deepening Data and Tech Collaboration: The partnership with Alibaba's cloud and AI unit is not just a sponsorship but likely a deep technological integration in data analytics, user profiling, and personalized content distribution. This enables the NBA to better understand and monetize Chinese fans and provides a template for technological innovation in global operations. 2. How does the deep involvement of team owners like Joe Tsai (Nets/Alibaba) and partnerships with local giants like Alibaba influence the NBA's operating model and potential risks in China? This deep integration brings opportunities but also increased complexity: - Localized "Shield" & Political Sensitivity: Joe Tsai's dual role as a Chinese tech giant executive and NBA team owner provides the NBA with unique localized insights and potential political buffering. However, this "shield" also means the NBA's interests are more deeply intertwined with its Chinese partners. Should new geopolitical or socially sensitive events arise, the risks to its China operations might be harder to disengage from and more susceptible to influence from the Chinese government or public sentiment. - Data Sovereignty & Compliance Risks: Collaborating with Alibaba's cloud and AI places significant NBA user data under China's data sovereignty and cybersecurity regulations. This could raise concerns in Western markets regarding data privacy and national security scrutiny, posing challenges for the NBA's global compliance strategy. - Corporate Citizenship & Value Conflicts: This partnership model might lead the NBA to maintain silence or take ambiguous stances on issues like human rights and free speech to protect its commercial interests in China, potentially harming its brand image and corporate citizenship perception in other global markets. 3. What long-term lessons and implications does the NBA's six-year 'exile' and subsequent successful return hold for other Western brands operating in politically sensitive international markets, especially concerning China? The NBA's case reveals the stark realities and strategies for Western brands operating in the Chinese market: - Market Size is the Ultimate "Forgiver": Despite the NBA's boycott due to political commentary, China's immense commercial potential ultimately drove both sides to seek reconciliation. This indicates that for many Western brands, if the Chinese market is critical to their global growth, a "return" is almost inevitable even amidst political pressure, demonstrating that brand resilience is proportional to market size. - The Necessity and Cost of "Political Amnesia": A successful return often requires both parties to tacitly adopt "political amnesia," downplaying or avoiding sensitive incidents. This implies that brands, in the face of commercial interests, may need to temporarily set aside or "soften" their values as expressed in a Western context, at the potential cost of criticism from Western public opinion. - Deep Localization and Strategic Patience: The NBA is not just hosting games but engaging comprehensively through infrastructure investment, community events, and deep partnerships with local tech giants. This shows that for brands to truly establish themselves in China, they need to go beyond simple product sales, investing in deep cultural integration and long-term strategic commitment, rather than merely pursuing short-term gains.