Back in October, Houston Rockets general manager, Daryl Morey, posted on Twitter supporting protesters in Hong Kong which enraged the Beijing government. Morey's comment caused a huge impact to the NBA's relationship with China. NBA's games have not been shown in China since the standoff began back in October. NBA's commissioner, Adam Silver, has stated that the standoff with China, "could reach $1 billion". China's giant streaming service, Tencent, has removed a substantial number of NBA games from it's service, while China's state-run television has not shown a single NBA game this year. Also due to the massive coronavirus outbreak which occurred recently, the China government is in no hurry to resolve the conflict it has with the NBA. Silver also is in no rush to try to resolve conflict because China's main concern right now is to contain the coronavirus outbreak going on within the country. The NBA's conflict with China not only affects its eposure, but it also affects the league financially as well. The conflict is causing a decrease in the cap salary for each team which has decreased around $2 million US dollars thus far.
I chose this article because it was related to the world of sports and to world news as well. It is very interesting to me to see how the world of sports is affected by conflict. The article was very fascinating to me not because it was a sports article, but because of how the deals were affected and how much money the NBA was losing due to the conflict with China.
I believe this article affects the market through a political factor because that is what is causing the main conflict.The tweet posted by the Houston Rocket's general manager caused a political conflict with the Beijing government which is leading to the decline of the NBA in the country of China.
This article is very interesting and shows just how much cultural difference can have an affect on businesses like the NBA. Although the comment made on twitter was an act of freedom of speech, the government of China basically placed a boycott on the NBA. It is clear that China, being the biggest source of revenue for many large companies, believes that it can have complete control over companies all over the world by taking away their market.
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