Nba Lockout Research Paper

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Alejandro Perez February 25, 2012 Professor Altemus NBA Lockout The National Basketball Association (NBA) was founded in New York City on June 6, 1946 as a result of the merge of the Basketball Association of America and the National Basketball League. It is a very successful organization led by Commissioner David Stern. But like every organization the NBA has had its rocky times. A recent event was the fourth NBA lockout that lasted 161days and officially started on July 1, 2011, a day after the expiration of the 2005 Collective Bargaining Agreement (CAB). The CAB is a contract between the NBA and the Players Association that dictates the rules of the players’ contracts, trades revenue distribution, the NBA draft, and salary…show more content…
Businesses that depend on the NBA games will suffer tremendously. But, this lockout will not only affect the United States, but the whole world. The NBA has made a global impact from not only selling jerseys from American players, or selling basketball shoes, but through programs such as Basketball without Borders. Which is designed as a method to implement a social change. The program has been present in 9 countries on 5 continents, donating over 1 million hours of community service. Other events include building dormitories, basketball courts, clinics, libraries, dining halls, and participating in Special Olympics. All of these interactions all over the world have made it clear to the world that the NBA has a global impact, and thus too will the lockout. With that being said, the lockout will definitely have its impact on the marketing world. When one thinks of basketball, one thinks of jerseys, basketball shoes, headbands, and arm sleeves. The companies making these basketball related items are seeing no profit! Nike, adidas, and underarmour will be experiencing some major losses. With the NBA players not playing, the youth will not get to see Derrick Roses’ new AdiZeros’ or Blake Griffens’ Jersey and that will cause drops in…show more content…
The shoe industry could lose up to $500 million in sales. The saying “out of sight, out of mind” means that if the players are not in the court, and the kids aren’t thinking of them, they will not go out and buy their shoes. China, being the NBA’s largest international market, thanks to Yao Ming, decreased its sales in basketball shoes by 17% in the 161 days of the lockout. The NBA’s revenue in China is growing at a rate of 30% to 40% per year. Basketball jerseys are a huge market that was impacted by the lockout. Experiencing a loss of close to $10 million in jerseys worldwide. With new young talent coming from Spain, Ricky Rubio, Spanish participation in the jersey market increased, but with the lockout, will decline a projected 25%. Two of the biggest advertisers that heavily advertise through the NBA are Sprite, and T-Mobile, and without the airtime to show them, they are losing notoriety. Without NBA players constantly in the spotlight, gives these advertisers less ways to reach the market. Pepsi and Coca Cola will also be affected slightly because of the advertisements and commercials it would display during basketball games to reach the

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