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Home business strategy

Solving the NBA Lock Out

by Dana Blankenhorn
November 9, 2011
in business strategy, investment, Personal, Sports, Television
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Nba_logo1The problem with the NBA isn't 47% or 53%. It's not the mid-cap exception. It's not the distrust of owners like Michael Jordan and players like Derek Fisher.

The problem is that revenues aren't growing. The problem is a lot of clubs aren't making a profit.

So here's a modest proposal.

Expansion. To the Far East.

Right now there are 30 teams. Add two. Sell them, maybe to Shanghai and Beijing. Now you sell six existing clubs to entrepreneurs in Singapore, Melbourne, Sydney, Tokyo, Seoul and Osaka.

See, Michael Jordan gets out of Charlotte. The Sacramento Kings are no longer your problem. The Milwaukee Bucks become the Yuan. Every other small market team is shivering wondering if they'll be next, and three will be.


Real madridNow you have the leverage to get new palaces built. Now you re-arrange the schedule and re-organize the league into four blocks of 8 times each, with half the league playing in Asia half the time. You create a global footprint and a global brand. You sell rights in new cities. You develop new stars, home grown players from China and Australia and maybe a shooting guard from Vietnam.

See what I mean? After the European monetary crisis ends you wash, rinse and repeat. Only it's easier there. You expand to 8 existing athletic groups, like Real Madrid, which already have EuroLeague teams. You're turning the rest of the EuroLeague into your minor league.

Maybe (and this is really delicious) you can start promotion-and-relegation, starting within Europe. Worst of that lot goes down, best of the rest comes up, big tournament at the end of their season to choose the winner.

And then you can import that model here to grow a competent minor league.

The problem with most labor-management discussions in this country is that we look at the pie as having one size. The pie never has one size. It is always either growing or getting smaller. Grow it.

Tags: basketballChinaDavid SternDerek Fisherinternational basketballJapanlock-outMichael JordanNBAYao Ming
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Dana Blankenhorn

Dana Blankenhorn

Dana Blankenhorn began his career as a financial journalist in 1978, began covering technology in 1982, and the Internet in 1985. He started one of the first Internet daily newsletters, the Interactive Age Daily, in 1994. He recently retired from InvestorPlace and lives in Atlanta, GA, preparing for his next great adventure. He's a graduate of Rice University (1977) and Northwestern's Medill School of Journalism (MSJ 1978). He's a native of Massapequa, NY.

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I'm Dana Blankenhorn. I have covered the Internet as a reporter since 1983. I've been a professional business reporter since 1978, and a writer all my life.

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