NBA in Guangzhou? Not tomorrow ( 2003-08-26 09:55) (China Daily)
When the Chinese press first
reported a week ago that someone was trying to bring the NBA to Guangzhou, the
news was greeted with a hushed anticipation, followed by a collective suspicion.
It just sounded too good to be true.
Ed Cunningham, entertainment lawyer for GT Sports and
Entertainment, believes that China has a big market for sports and
entertainment products. [Xinhua]
Ed Cunningham,
the person reportedly at the centre of the speculation, had a lot of explaining
to do, and he did it in a lengthy interview with China Daily the night before he
was due to fly back to the US "to discuss future projects with scores of
clients".
GT Sports and Entertainment, which employs Cunningham as an entertainment
lawyer focusing on the representation of athletes, coaches and team executives,
is not a talent agency or a promoter of the sort normally associated with
producing these kinds of events. As he explained, he functions in more of a
consulting capacity by connecting all of the parties that will participate in
the events.
For example, his firm represents Clear Channel, the top promoter of sporting
events and entities, including the NBA, in the US, said Cunningham.
Cunningham further emphasized that he did not simply "pick Guangzhou to be
the Asian home for an NBA team". Rather, he evaluated those Asian cities that
might be of interest to the NBA when they do consider the possibility of
expanding outside the US. To that end, he zeroed in on 13 Asian cities, visiting
12 of them. And he ultimately concluded that Guangzhou was one of the strongest
candidates for the potential establishment of an NBA base in Asia.
He studied at economic indicators and existing sports facilities. When asked
'Why not Tokyo?', where the GDP per capita is much higher, he responded that one
should consider the long term prospects. "In the early 20th century, nobody
would have seen Los Angeles as a major centre for sports and entertainment. San
Francisco was twice as big. When you look at the upside that the city of
Guangzhou and the neighbouring area has to offer, you'll understand that it has
got everything in its favour," Cunningham enthused.
But that does not necessarily mean that Guangzhou already has everything in
place, he cautioned. For all the wonderful facilities it does possess, a
state-of-the-art basketball arena is needed, complete with boxes to accommodate
big-spending corporate sponsors such as Dell. Asked about retrofitting the
Tianhe Arena, with its prime downtown location, he explained that sometimes it
was more profitable to build a new structure than to renovate an existing one.
The economics of this approach has been proven time and again in the US, where
older venues are frequently replaced.
"There's no lack of funds or desire in Guangzhou," said Cunningham. "The
resources are not limited. What they need is a plan to show that it is one of
the best cities to host an NBA team."
Cunningham added that this would not happen tomorrow or in the next year. He
is looking at a time frame of eight to 10 years. And he defined his role as one
of helping to prepare a foundation for a future when sports and entertainment
would be a driving force in the economy of this South China metropolis.
According to the NBA's Asian representative, the organization has no
definitive plan to expand the franchise to any Asian city. However, Ed
Cunningham did not see any contradiction in this statement. He remains convinced
that America's sports business has to look east, especially to China, to insure
continued growth.
"As revenues in the US start to flatten out in the sports business, the
leagues in the US will have to look outside its borders for future
opportunities. Every league has to be in Asia at some point in the future. And
no one can afford to ignore China," Cunningham reasoned.
A couple of exhibition games each year here and there cannot be expected to
generate revenues of any lasting substance, analyzed Cunningham. While studying
the market potential in China, he examined every aspect, including merchandising
and television rights.
He further cited a National Football League (NFL) game played in Mexico last
season to illustrate the overseas business opportunities for US sports
franchises. "They were willing to play there because they could make more
money."
Cunningham believes that, like the US, China has a big market for sports and
entertainment products. And an NBA team in a Chinese city is not unthinkable.
"People may be laughing now. But something like that does not happen overnight.
If you are not ready when the NBA takes the step to expand, it will be too late
for you," he said.
Cunningham added that a home-town team does not necessarily have to be
entirely composed of players from that city, or even from the same country for
that matter. Just as players in many NBA teams in the US come from all over the
world, a team in a Chinese city can have a lot of international talent in its
makeup.
"Getting the NBA into China is just like exporting a product for a US
company. It is conceptual now. And there is a learning curve. But one has to
have a vision to be part of the future," Cunningham said confidently. He
described a future of people flying in from other parts of Asia to watch games
in Guangzhou. "Hong Kong fans can take the train and spend the night here. It'll
be great for the economy."
The former NFL player does not limit his business to the sporting world. It's
just part of a mix, he said, which also includes promoting rock concerts and
consulting politicians. According to the web page of Greenberg Traurig,
Attorneys at Law, of which GT Sports and Entertainment is a part, Ed Cunningham
has previously served as a city councilman and was even a candidate for the US
Senate. He has also functioned as an advisor to US Senate and Presidential
candidates.
So, what can Chinese sports or rock fans expect in the near future?
Cunningham
