The NBA-China tension: What’s at Stake?

Carefully read the following Sage Business Case:
Rae, M., (2020). The NBA-China tension: What’s at stake?
(Links to an external site.)
. SAGE Business Cases. 2020. 10.4135/9781529729450
Then prepare an analysis using PowerPoint that is suitable for presentation to the senior executive team at the NBA. Include slides with sections for each of the following:
Introduction (include a title slide)
Provide a brief introduction to the case.
Situation
Describe the details of the situation, making sure to include information on who, what, why, when, and how. You need to bridge the gap between one’s knowledge and the ability to form a hypothesis.
Problems
Identify and provide a thorough explanation of the perceived and underlying problems, as well as the potential long-term effects.
Alternatives
Discuss alternatives or strategies that the company could implement. Include more than one alternative, detailing the advantages/disadvantages of each and applying the strengths and weaknesses within the company (e.g., Alternative 1, Alternative 2… using bullet points is fine).
Discuss common considerations. What are the decision options? Are some stronger than others? What is at stake with each of these considerations?
Recommendations and Implementation
Going forward, what should the NBA’s policy be in dealing with similar situations?
Explain how you would implement this strategy within the company.
Reference Page
Reference additional resources you used in your case analysis (three minimum).
In your presentation, be sure to consider and address the following:
What does the NBA have to gain by clamping down on public statements about the Hong Kong protests? What do they have to lose?
Do you think an organization has a right to silence its employees?
Does the NBA have an ethical responsibility to make a more definitive statement on the protests, or should it place its business interests first?
Your PowerPoint presentation should contain 10-12 slides (not including the title and references slides) and conform to the CSU Global Writing Center
(Links to an external site.)
. Make sure to include speaker notes to fully explain your analysis and recommendations. Finally, three scholarly references are required, plus in-text citations.

CASE:
Learning Outcomes
Students should use their learning in international business and marketing to evaluate the National Basketball Association (NBA)’s financial stakes in China and to analyze what the NBA has to gain or lose by commenting on the pro-democracy protests in China. More broadly, students should discuss whether an American company should or should not stifle speech and what the NBA’s ethical responsibility toward the protests is.
The Issue
Hong Kong has been considered a part of China since Britain relinquished the colony in 1997, but the region still maintains some degree of autonomy from the authoritarian Chinese government. Pro-democracy protests broke out in April 2019 after a bill was proposed to allow Chinese authorities to extradite suspected criminals from Hong Kong to the mainland. In October, Houston Rockets General Manager Daryl Morey tweeted an image that read, “Fight for Freedom, Stand with Hong Kong.” In an attempt to quell the backlash from Chinese investors, the NBA issued a statement that only seemed to make things worse. Even after a lengthy apology from Morey, 11 Chinese sponsors have suspended their relationships with the NBA, with retailers pulling merchandise from e-commerce sites and telecom companies not airing NBA games.
Source: Photo by ANTHONY WALLACE/AFP via Getty Images
Why Is It News?
Experts believe the NBA has maxed out its market in the United States, but China is still a fertile market for growth. This leaves the league, along with several other American brands, equivocating on the pro-democracy protests in Hong Kong, fearing censorship from China if they are seen as critical, but risking alienating U.S. customers by caving to an authoritarian government. The Houston Rockets are the second most popular team in China, surging in popularity in 2002 after drafting Yao Ming, now president of the Chinese Basketball Association. In 2018, an estimated 500 million people in China watched NBA basketball. China accounts for at least 10–15% of the NBA’s yearly revenue, reportedly worth more than USD 4 billion, and the ripple effects of the incident could impact marketing and sponsorship for individual players.
Fans in the United States started numerous protests, funded by activists, film producers, and everyday fans, wearing T-shirts supporting Hong Kong or face masks—a symbol of the Hong Kong protests—to NBA games. The league clamped down on these protesters, quickly confiscating pro-Hong Kong signs and ejecting many of the fans who were holding them.
Discussion Questions
1.
What does the NBA have to gain by clamping down on public statements about the Hong Kong protests? What do they have to lose?
2.
Do you think an organization has a right to silence its employees?
3.
Does the NBA have an ethical responsibility to make a more definitive statement on the protests, or should it place its business interests first?
This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2021 SAGE Publications, Ltd. All Rights Reserved
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Case
Learning Outcomes
The Issue
Why Is It News?

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