The NBA’s restart has launched successfully, leaning into technology and the virtual space to deliver broadcasts aimed to please fans and sponsors alike. On the most recent episode of “SBJ Unpacks: The Road Ahead,” our John Lombardo talks with Magic CEO Alex Martins about the NBA’s restart and how innovations in the bubble could affect the league beyond this season.
On sponsor feedback on the NBA’s product in the bubble:
Martins: As soon as all of the provisions were put into place in terms of what was going to be available for us on the Disney campus and through virtual opportunities … we did have very detailed conversations with them. Our team in particular, I was really proud of the fact that they really broke down everything that was still owed to our partners, so to speak in terms of the 25% of the season that was yet to be played when we took the hiatus, and then how we were going to value what we were made available to us on the Disney campus back to them to help them make good. For the most part, those conversations were really, really good. Our partners were very understanding and very accommodating. Before we started playing the games, the anticipation of playing the games and the possibilities of large television ratings around our games was enticing to our partners.
On which new presentation tactics will stick with the NBA into next season and beyond:
Martins: The virtual fan experience has been tremendous. Being there live at our games, it is really great to see the interaction of the fans within the games. It’s very by teams as to the engagement of their fans, but most of the fans have been completely into it, cheering and getting behind their team. That has been a tremendous innovation. … I certainly believe that the virtual signage component is something that will stick long-term. We’re certainly going to be a proponent of it. I think it gives us a new opportunity for revenue generation. To be able to put a sponsors’ logo right there on the court in different locations, whether it’s on the sideline, apron or on the court itself. That’s going to give us a great opportunity moving forward. I do think this laboratory, from a revenue standpoint, that we’ve created as part of the restart and in the campus community is going to give us new opportunities for revenue generation going forward.
On the financial impact COVID has had on the Magic organization:
Martins: Twenty-five percent of ticket revenue for the year has been lost. That’s, for the most part, the loss. The majority of our sponsorship revenue, by means of the opportunities that they league has provided at Disney, will be recaptured. … It really is 25% of ticket revenue for us in particular. We’ve had to tighten our belt. We’ve had to cut our expenses. Unfortunately, we had to do a reorganization of our personnel on the business side of our business in order to realize some cost savings there. There have been some really difficult decisions that we’ve had to make at this time because of the pandemic. Our goal is to try to maintain as much of that moving forward as we possibly can.
