In February of 2009, the NBA borrowed $175 million, representing the first league financing since the economy and credit markets decided to crash in the fall of 2008. The money, which was acquired to assist up to 17 teams, was made in addition to an existing $1.7 billion leaguewide credit that is derived from television contracts, which is designed to aid in securing loans for the teams. After polling teams as to the need for money, 17 teams could justify the outside assistance, and requested loans.

Though the NBA has not revealed which teams will be given the loans, it’s clear that teams, if not the NBA as a whole, are in dire need of assistance. Around the league, some teams are playing in arenas nowhere near capacity, and cannot count on the formerly reliable support from big businesses for sponsorships. The Memphis Grizzlies are forced to operate at a payroll far below the salary cap due to bottom of the barrel attendance figures of approximately 13,000 a game, dead last in the NBA. The Orlando Magic, 2009 Eastern Conference champions, have suffered annual operating losses of roughly 10 million dollars. The Sacramento Kings were on pace to lose more than $25 million before giving away the contracts and associated salaries of Brad Miller, John Salmons, and several others by means of trades.

While possibly a good omen, in May the NBA renewed its $1.96 billion leaguewide loan pool, from which the 17 franchises borrow. The NBA is in the first year of an eight-year, $7.5 billion deal with its national television partners, ESPN/ABC and Turner. Though it may be shocking that such a cash infusion still allows members of the league to live in fiscal turmoil, the readily apparent dilemma is the very cities in which certain franchises reside. Is a full blown re-alignment, while tapping into foreign markets the lifeline the NBA requires? Could David Stern’s dream of globalization be the very answer his esteemed league is looking for?

Why Globalization of the NBA Makes Sense

The NBA has superstars from all over the globe that are prime marketing candidates. Kobe Bryant grew up in Italy. Pau Gasol is from Spain. Steve Nash is Canadian and Dirk Nowitzki is German. The San Antonio Spurs all-star backcourt is comprised of a Frenchman and an Argentinian. Yao Ming, despite of all his injuries, is the face of China and among the top three most popular players in the world. The 2008 Beijing Olympics showcased NBA talent from every continent, and even marketed itself into unexpected countries, such as Russia and Brazil. I have always felt that basketball is the most universal game, as it is easily translated from the corn fields of Indiana to the streets of New York, and now from the coasts of Argentina to the vineyards of France. When the U.S. men’s team failed to win the 2004 Olympic gold medal, one could argue that was actually good for the NBA and the sport. The Argentine team that would go on to beat Italy in the gold medal game had six NBA players on the roster. Needless to say, the sport has made itself more than ready for global appeal.

No Need for Contraction, Just Globalization

While I can unfortunately not cite sources, but rely on common sense and stating the obvious, certain cities cannot support an NBA franchise. The teams who make this readily apparent, in my opinion, are the Memphis Grizzlies, New Orleans Hornets, Sacramento Kings, Charlotte Bobcats, Milwaukee Bucks, and New Jersey Nets. The additional financing that is given through loans can only sustain a team for so long before it becomes necessary for the league intervention. One franchise has successfully crossed the border and thrived in the NBA. The Toronto Raptors were able to outlive their former Canadian counterpart, the Vancouver turned Memphis Grizzlies. (Editor’s note: What bad luck for the franchise, two city failures. On top of that, I’m 100% confident no one has ever seen a grizzly bear in Memphis) Can further expansion into foreign markets not only resurrect failing franchises but have a long term incentive to league marketing?

With these teams identified, if only for purposes of this article, as the teams destined for failure, moving and re-aligning becomes our most attractive option, with all apologies to Seattle Supersonic fans and the fans of aforementioned teams. The suggestion comes with an entirely European division. The NBA is comprised of six divisions, with five teams in each division – for a total of thirty teams. With some adjusting of teams and some geographic subterfuge (Remember in the NFL that the Dallas Cowboys are in the NFC East!), the situation probably needs some adjustments. Keep in mind that it takes just as long to fly from New York to Los Angeles as it does from New York to London. With some careful scheduling, this may not only be realistic, but idealistic.

The new divisions would be configured as follows:

Eastern Conference

Atlantic:

Boston, Philly, Washington, Toronto, New York

Euro:

Barcelona, Paris, London, Rome, Athens

Southeast:

Orlando, Atlanta, Miami, Cleveland, Indiana

Western Conference

Midwest:

Denver, Chicago, Detroit, Oklahoma City, Minnesota

Pacific:

Los Angeles Clippers, Los Angeles Lakers, Golden State, Portland, Utah

Southwest:

Phoenix, Mexico City, San Antonio, Dallas, Houston

By expanding to Mexico city, you tap a virtually untouched market that could easily help to fill Estadio Azteca, a goliath sized structure used for all major sporting events in Mexico. It would be no problem putting people in the stands for 41 games a year. Trickling down to Mexico almost guarantees that you could expand, if only for marketing, into the South American market. With Nene and Anderson Varejo being Brazilian native NBA players, and Manu Ginobili, Luis Scola, and Andres Nocioni from Argentina, participating in youth organizations and playing exhibition games would funnel fanship and currency from a previously sparse source.

The Euroleague already has teams in most of the cities listed above, except for a major presence in England. The amount of money that is spent on more popular European sports, such as Football (Soccer), coupled with the exchange rate leads me to think that the fan base already exists.  I believe with the tenacity of fans in these markets, along with being able to see the best NBA players in the world, makes supporting an NBA team an easy task. This could theoretically even boost travel to and from the United States, and forge stronger relationships with foreign countries. All this is without even bringing China into the equation. Will there one day be an INBA Finals between Beijing and Mexico City? Will the Celtics/Lakers rivalry one day turn into the Toronto Raptors/London Kings? NBA basketball should not just survive, it should persevere. If it means making calls from an iPhone to discuss the iNBA, I’m all for it.

For more on this topic, check out the following links:

http://www.sportsbusinessjournal.com/article/61537

http://www.sportsbusinessjournal.com/article/62366

http://sportsillustrated.cnn.com/2009/writers/ian_thomsen/01/29/stern.international/

http://www.economist.com/specialreports/displaystory.cfm?story_id=11825577

Share on Facebook