CBA revamps as NBA gains China strength

The overhaul follows a drop in sponsorship value for the league over recent years, and will see the CBA restructure its business based on the model of the NBA (National Basketball Association) and NFL (National Football League) in the US. The CBNC has tasked sport consultancy Zou Marketing with defining its new marketing-driven business model, looking at salary caps, player transfers, revenue-sharing, league versus team ownership, and marketing objectives. The overhaul comes as the NBA brand continues to make inroads in China on the back of star Chinese player Yao Ming. The NBA, which estimates that its programming reaches 314 million viewers in China, is organising the first-ever NBA games on the mainland in October. According to Tor Petersen, managing director of Zou, CBA is looking to become more media- and sponsor-friendly. "The CBA has had nine years of successful basketball but in recent years has seen a decline in sponsorship value. They have had title sponsors -- Hilton, Motorola, Nokia, China Unicom -- and each time the league has switched identity and logo," said Petersen. "We will evaluate leagues in other markets to see how these are run and managed and benchmark the current league through interviews and evaluations of teams and stadiums." The biggest change is the decision to drop the official title sponsorship package. Instead, the CBMC will promote the CBA logo and brand while also delivering increased sponsorship benefits to three separate 'CBA presenting marketing partners'. "They need to build their own brand, like the Olympics, which just by sheer rights to use the rings (logo) brings value to brands," added Petersen. The lion's share of marketing benefits -- including in-stadium signage, on-court logo branding, uniform ad patches, TV advertising and stadium hospitality packages (VIP tickets and parties) -- will be divided between three marketing partners. The initiatives will allow the CBA to increase partners by creating more advertising and media inventory. The presenting sponsor package, while driven by market value, is expected to cost Rmb 30 million. "Instead of relying on one title sponsor at the cost of attracting other partners, now the CBA will be able to target a select group of sponsors." The CBMC is also searching for an advertising and PR agency to handle its sponsorship activation and promotional activities. The move towards more games and league formats, meanwhile, is expected to give games wider media coverage, creating more value for sponsors and more conference rivalry to drive viewer interest.