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
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.