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China Calling and the Cavs Answer

When you have the largest consumer market and the largest television market on the planet, every entertainment company dreams of getting its share and the NBA is no exception. In fact, it was one of the first professional sports leagues to reach into China in a significant way, with games being broadcast there to an audience measured in the hundreds of millions.

The next logical step in the evolution of North American sports relationship with China was recently taken as a group of Chinese investors agreed to purchase a 15% interest in the Cleveland Cavaliers. The agreement requiers the approval of the NBA's Board of Governors. The group is headed by JianHua ("Kenny") Huang, a Chinese born investor who has brokered marketing deals between the Houston Rockets and New York Yankees and a Chinese conglomerate.

While the deal is certain to spark increased Chinese interest in the Cavs, its major benefit may lie in helping to convince LeBron to remain in Cleveland following next season. Although he is a free agent after next year, and at least half the league has been busy clearing cap space to make an effort to sign him, LeBron has been very careful to publicly say he intends to stay in Cleveland. Nevertheless, I'm sure that Nike and LeBron will be very interested in the increased exposure that the Chinese investors can bring to the table. Allin all, very wise move on the part of Dan Gilbert.

Full post as published by Sports Biz on May 26, 2009 (boomark / email).