Report Reveals NBA Owners Deeply Entangled in Chinese Companies

In today’s edition of the Front Office Sports newsletter, we’re taking a look at an investigation that shows NBA owners have ties in China that go far beyond the court.

NBA Owners' Deep China Investments

It’s long been known that the NBA has deep ties to China, namely through NBA China, valued at $5 billion. A new investigation shows that its owners’ ties to the country go far beyond the court.

The NBA’s 40 principal owners have over?$10 billion?in China-connected investments,?according?to an analysis by ESPN.

• Joseph Tsai, both the Brooklyn Nets owner and vice chair of Chinese retail giant Ali Baba, has 53.5% of his net worth in China. Tsai is Ali Baba’s second-largest?shareholder, and has a net worth of?$8.2 billion, per Forbes.
• Sacramento Kings co-owner?Paul Jacobs?has over?30%?of his net worth tied to China, according to the investigation, through over?$200 million?in shares of Qualcomm.?
• Memphis Grizzlies owner Robert Pera has around?$369 million?in exposure to China through his wireless device parts manufacturer Ubiquiti.

Miami Heat owner Micky Arison has over?$375 million?invested in China through a venture connected to his cruise line company Carnival Corp.?

The tie-up entangles Carnival with a state-owned company,?CSSC, that has military connections. CSSC has been tagged by the U.S. government as “acting contrary” to U.S. “national security or foreign policy interests.”

Tsai Ops

Tsai is often at the center of the NBA’s complicated relationship with China.

He reportedly tried to get?Daryl Morey?fired after Morey, the Houston Rockets general manager at the time, tweeted in support of Hong Kong protestors. Morey later had a suite he purchased at the Nets’ Barclays Center?refunded.

Conversation Starters

• Outdoor apparel, activewear, and footwear giant VF Corporation reported $2.8 billion in fourth-quarter revenue, a 9% increase year-over-year.
• The Public Investment Fund, Saudi Arabia’s sovereign wealth fund, leveled up its gaming portfolio. The fund acquired a 5% stake in Nintendo for $3 billion.
• Foot Locker kept a steady pace in the company’s latest earnings report. The sportswear and footwear retailer generated $2.18 billion in Q1 2022, a 1% increase year-over-year.
• “Hard Knocks In Season” will follow the Arizona Cardinals this fall. It will mark the Cardinals' first appearance on HBO's “Hard Knocks” series since its launch in 2001.
• Major League Baseball and South Korea's top league, the KBO, are exploring a cross-promotional partnership, according to Jeeho Yoo of Yonhap News Agency.

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