The Strategic Business Structure of NBA

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When it comes to the successful NBA business structure, if you want to understand how the NBA

business model works, then take a look at the cases of DeMarre Carroll, Reggie Jackson and Khris

Middleton. These people are not the All-stars and they are not household names either.

When combined, they are going to make $210 million this summer. For 5 years starting from

DetroitPiston, Jackson got $80 million. Over the time span of 5 years, Middleton got $70 million for

staying with Milwaukee Bucks and in his 4 year’s contract, Carroll made $60 million as he joined the

Toronto Raptors.

Suchideas wereconsidered quite baffling a couple of years ago but now they seem fair. InUnited States,

where golf, tennis, hockey, football and baseball have their own powerful marketing machines, the NBA

has created an unsuppressed model that is building the brand equity. This model is performing well in

the borders of America and hence why it is known to be the most global of sorts in terms of fan

participation and popularity.

Eversince David J stern took over the NBA as commissioner, the franchises have been turned into well-

oiled money machines that flex their muscles on and off the court. Hence why, NBA has become the

case study for all organizations which are struggling with the breakout by offering them lessons on how

to make a brand name and make obvious and innovative name.

Do you know?

Do you know that the revenue generation by NBA through the ticket sales was $1.2 billion while the TV

rights are more than 4 times $255 million?The big dollars actually come from the ancillary products and

the promotional tie-ins. Furthermore, it has network of licensing agreements and sponsorships with

more than 150 companies and these include Nike, Coca Cola and McDonald. Most of these relationships

are long term.

There is no doubt that NBA has made a deep emotionalbond between its products and customers and

this bond is transcending in the game itself. The logo of NBA has triggered dream response which is

respect, quality, dynamism, excitement and fund. NBA has become a community and club that everyone

wants to join. Due to these strategic measures, the popularity of NBA has increased and it has reached

countries like Japan too where there is no basketball fan base available. That shows how inspiring the

NBA business structure is.

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