ADVERTISEMENT

BNN Business of Sports

NBA Cup in-season tournament flies high

Los Angeles Lakers forward LeBron James, center, lifts the the NBA Cup while celebrating with teammates after they defeated the Indiana Pacers 123-109 in the championship game in the NBA basketball In-Season Tournament on Saturday, Dec. 9, 2023, in Las Vegas.(AP Photo/Ian Maule) (Ian Maule/AP)

In the midst of launching its first In Season Tournament in 2023, the National Basketball Association was negotiating a long-term media rights package that would ultimately make even the most hardened financial analyst stand and applaud.

A $77 billion USD deal over 11 years charted new waters for the NBA, a league already swimming in profit and lofty valuations thanks to the game’s superstars and the league’s best-in-class marketing. A true revolution in the sports business would occur. TNT, a trusted longtime cable TV partner, was turfed. Amazon, a burgeoning sports streamer with deep pockets, was in.

Looking back on the brokering, the allure of a league-wide in-season tournament upped the ante for the big tech suitor. Regular season games prior to Christmas were traditionally lacking in intrigue and player effort. Suddenly, snazzy looking unique hardwood courts were the talk of the town, and Lebron James was competing for more hardware, and cash.

And voila, viewership increased 26% from the games played during the same period in the year before. 5.68 million viewers in the USA watched the Los Angeles Lakers defeat the Indiana Pacers in the championship game in Las Vegas. According to Forbes, this was the highest number for any non-Christmas, non-postseason game since February, 2018.

Beyond the cool floors and the stakes of winning a title, the financial rewards for the players instilled buy-in from the athletes, creating early-season playoff atmospheres in NBA arenas and on screens. This year, each player on the winning team will garner a $514,971 cheque. Runners-up will receive $205,988. All players whose teams reach the quarterfinal round will win a cash amount.

With money and a trophy on the line, games that were normally devoid of real importance seemed bigger. To accommodate Amazon’s inclusion in broadcasting live games starting next year, the NBA “will potentially move the event to an early December 2025/early January 2026 timeline,” according to Sports Business Journal. In only its second year, the tournament is part of league vernacular, and a desirable aspect of regular season broadcasting, whether for the top national broadcasters/streamers or local TV.

The next big financial return on the tournament started with its name change. Now simply - and purposefully - called the NBA Cup, the door was opened for a naming rights sponsor. One of seven new marketing partners in 2024 – among 51 overall – Emirates airline was quick to sign up.

The event is now officially titled the Emirates NBA Cup.

This serves both partners. For Emirates, it is a major attempt at raising its profile in the United States, according to Reuters. Based in Dubai, and owned by the state, Emirates Group has been involved in pro sports for decades, most famously with top international soccer clubs Real Madrid and Arsenal. But its exposure in the US market is not as defined. Association with the NBA immediately puts it directly in view of American culture.

For the NBA, in addition to a presumably enormous fee, the Emirates sponsorship enhances the tournament’s worldwide visibility and commercial appeal. According to sportsin.com “it connects the NBA with international audiences and opens doors to potential global market expansions.”

Reuters reported that the value of the deal was not disclosed but Emirates executive Boutros Boutros said “the deal would generate $500 million a year in advertising revenue according to the company’s estimates.”

As the gargantuan media rights deal suggests, the NBA has conquered North America. The sport of basketball continues to increase its growth and popularity the world over. Europe and South America are competitive in international events and send top players to the league. Africa has an NBA-run league, and business in China is big. The deal with Emirates kickstarts engagement in the rest of the world. A YouGov survey reported that there are three million NBA fans in the United Arab Emirates. “This collaboration will showcase the excitement of the NBA to the millions of people who fly Emirates every year,” NBA deputy commissioner Mark Tatum said to Sportico.

Flights will offer NBA content and the carrier has designed and unveiled a nose-to-tail livery on some aircraft. Perhaps more than its American brethren like the NFL and Major League Baseball, the NBA is seeking to expand its reach around the globe. This partnership feels like it will have more resonance than a routine sponsorship.

What’s amazing is that it’s the NBA Cup driving new international growth. Two years ago it was a concept, an outside-the-box idea far flung from league tradition. One year ago it was embraced by players and fans alike. Suddenly, it’s a key and captivating aspect of the NBA calendar.

Vegas will host the final four style climax. The semifinals are on Saturday, December 14, and the championship game on Dec. 17.

Follow: @dgontheroad