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The differences between the Chinese and German sports market in relation to the NBA

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Term Paper


Business Administration>General




Term Paper: The NBA's impact on the Chinese sports market The globalization of sports began in the early 1990s, when the NBA has reached a saturation point in the United States. Commissioner David Stern viewed the 1992 Olympics as a huge opportunity to enter the global market. He pointed out that at this point in time, distribution in Europe is meaningless, because most European countries prefer football. In the 1980s, China changed its international economic policy from a relatively closed policy to an open policy. More cultural goods from the United States have entered China, such as rock music, movies, fashion, and fast food. The introduction of American culture to China in the 1980s provided the foundation for David Stearns to integrate the NBA into China (Zhou, et al., 2017). As of today, basketball is one of the most popular sports in China, second only to table tennis and badminton, the most popular sports in recent years (Klingelhöfer, 2017). One of the most important marketing strategies of the NBA is to send famous NBA players to China during the offseason to promote different brands and cooperate with Nike, Adidas, Under Armour and other NBAs. Many players followed Kobe Bryant after 2001, such as Stephen Curry and Kyrie Irving. Under Armour claims that since Stephen Curry visited China in 2017, their international sales have increased by nearly 60%. Nike also benefited from Irving's visit. Their March sales reached 8.4 billion U.S. dollars. According to Nike, China is their fastest growing market in the past few years (Duffy, 2019). In addition to the ambassador in China and the contract with CCTV, the NBA also benefits from sponsorship and advertising. In 2008, the NBA cooperated with 17 Chinese companies and earned more than 50 million U.S. dollars in revenue. In 2014, a Chinese sportswear company became the first official Chinese partner of the NBA with more than 32 million U.S. dollars in expenditure (Tuchman, 2017) . 4.1 Arriving in China David Stern was committed to focusing the NBA on international development in the early days of his tenure. In 1986, David Stern sent the record of the NBA Finals to CCTV. In 1987, David Stern reached a deal with the government-controlled Chinese national television provider CCTV. At this time, CCTV was the most popular television network in China. This deal helped the NBA influence millions of people in China, because watching TV was very popular in China in the early 1980s. David Stern intends to allow Chinese TV broadcasts to be broadcast for free in China to attract more attention. 5.0 Basketball in Germany Like most European countries, football is the most popular sport in Germany. But besides football, Germany has some other famous sports. Since tennis is the second most popular sport in Germany, ice hockey and basketball rank fourth in the number of spectators in Germany. However, German basketball has some problems that need to be dealt with. Not only is this sport unlikely to become the most popular sport in Germany, but the German Basketball Bundesliga is not the most popular basketball league in Germany. Compared with the German Basketball Bundesliga, young people and adults in Germany are more interested in the NBA. Various factors have caused the popularity of basketball to rise and fall in Germany. The victory of the German national football team in the 2014 World Cup brought German football back into focus. Similarly, compared with the audience area of ​​a football stadium, the auditorium of the German basketball stadium is almost non-existent. The most decisive factor in basketball not being so popular in Germany is that Germany's best players do not play in the Bundesliga. This is an issue that members of the German Basketball Federation have been arguing over the past few years. 5.2 German basketball player in the NBA Detlef Schrempf was the first German basketball player to be selected by the Dallas Mavericks in 1985. In his 16-year NBA career, Detlef Schrempf has become the idol of Dirk Nowitzki. He may be Dirk Nowitzki's most famous and successful German NBA player. Dirk Nowitzki was selected by the Milwaukee Bucks in 1998 and then moved to the Dallas Mavericks. Nowitzki played for the Dallas Mavericks for 21 years and is now one of the best basketball players of all time. Nowitzki is the main factor in the NBA's presence in Germany. Nowitzki not only won the NBA championship in 2012, but also played 153 games for the German national team and ensured the high ratings of German TV in international basketball games. Thanks to Nowitzki's success in the NBA, five German basketball players in 2018 were more active in the NBA than ever before (Orban, 2018). 6.0 Different Ways of the NBA in China and Germany The differences between China and Germany in the NBA are very obvious. Starting from the historical background and following the trend, the two countries have different triggering methods after the Olympics, and finally the economic policy followed by the NBA. The process of globalization that David Stern sought to achieve in the mid-1980s paid close attention to China. David Stern saw the huge advantage of making the NBA popular in China. Read Less