Rockets GM Daryl Morey's pro-Hong Kong tweet could cost the NBA close to $400M in revenueGETTY IMAGES
NBA Commissioner Adam Silver said that the league will likely lose "hundreds of millions of dollars" over the rift with the Chinese government that has affected sponsorships and TV revenue, but added that he "believed there would 'be a return to normalcy fairly soon,'" according to Sopan Deb of the N.Y. TIMES. Silver in his annual State of the League address labeled the financial harm to the league as "substantial." Silver, on the amount of losses, said, "Probably less than $400 million, maybe even less than that." He added that the NBA's overall financial health was "sound, even though its games are not on the air in a country with hundreds of millions of fans." Silver said that he "believed CCTV would resume airing games 'at some point in the future.'" Meanwhile, in the months since the fallout there has been a "sign of a slight warming in relations between China and the league." Silver said that the league was "discussing playing more preseason games in China next fall," and that USA Basketball "could play an exhibition game there" before the Tokyo Games, but that nothing was firm (N.Y. TIMES, 2/15). USA TODAY's Mark Medina wrote the uncertainty on those possible games "go beyond the Chinese government's backlash" over Rockets GM Daryl Morey's tweet and the NBA "publicly supporting his freedom of speech." It also partly "stems from the coronavirus outbreak" (USA TODAY, 2/16). Silver also said the TV ratings in China are "about where they were last season" (SPORTS.YAHOO.com, 2/15).
HOLD THAT THOUGHT: ESPN.com's Brian Windhorst noted Silver addressed "proposed NBA schedule changes." The league spent months talking to teams, the NBPA and media partners about "creating an in-season tournament and a play-in tournament for the postseason," but "decided to table a vote among owners on the matter that was set for April" (ESPN.com, 2/15). Silver said that he "remains optimistic that schedule changes he has wanted ... are viable possibilities." Silver added, "I may have been a little naive in thinking that for the 75th anniversary, we could say let's make all these changes. We'll sort of see what happens in the 75th anniversary, and we'll go from there" (HOUSTON CHRONICLE, 2/16).
REASONS FOR RATINGS DIP: THE ATHLETIC's Joe Vardon noted TV ratings in the U.S. are down roughly 15%, year over year, after "suffering a dip last season, too." Silver said, "It's well-known that on one hand we're celebrated by some because we have such a young fan base, but that young fan base is disconnecting from pay television in record numbers, and by disconnecting, not just simply subscribing to cable or so-called cutting the cord, they're not watching traditional paid television the way they used to" (THEATHLETIC.com, 2/15).
