Summarizing Sportico's friendly, not-so-deep dive into BSE Global: focus on international (Chinese) media rights, new digital revenue streams, and younger Nets fans

Last week, the sports business website Sportico published "a five-part series of news features and columns taking a look inside Joe Tsai’s and BSE Global’s sports ventures."

It wasn't that deep.

While two articles offered some insights, there were no tough questions or deep analyses. (Will they re-market arena naming rights? Why has the arena's financial performance--even before COVID, and separate from the Islanders--lagged so much? Was the team sale really a record?)

Beyond that, Sportico published three self-serving BSE-submitted columns, verging on advertorial. It looks like they'd rather curry favor with, rather than probe, that big a figure in sports.

A "sports empire"

The main article--here's the Yahoo Sports version--was headlined HOW JOE TSAI AND HIS ‘RAG TAG TEAM’ ARE BUILDING A SPORTS EMPIRE, published 8/23/21.

It leads by describing how Tsai had been approached in 2017 by representatives of Nets owner Mikhail Prokhorov, and how he didn't want to be a 49% minority owner--the first stage of the transaction--given the lack of clout

The key, though is this: "The evolution of media and technology means the best business position is to have control of the licensing rights," given that it doesn't cost to add digital fans, especially outside the United States.

He thought those rights were undervalued:

Roughly speaking, [Tsai lieutenant Rich] Tao said, Chinese media was generating viewership and engagement numbers similar to the U.S., but they were paying fees perhaps one-twentieth of the multi-billion-dollar U.S. media deals the NBA had at the time. 

And that's why Tsai--a reflexive defender of the Chinese regime--was so crucial in breaking the logjam when China erupted in response to a tweet from Houston Rockets executive Daryl Morey defending Hong Kong.

Expanding youth and tech

The other article, published 8/26/21, was headlined NETS EXTENDING LONG REBOUND WITH FOCUS ON YOUTH AND TECH:

The Nets rebound predates Abbamondi and owner Joe Tsai, who bought into the team in 2017 and took majority control two years later. The revival was jumpstarted by the 2012 move to Brooklyn and adoption of the borough’s name, both done at the suggestion of Jay-Z, then a part owner of the team. But the marketing ease of dropping quotidian New Jersey for the adamant hipness of Brooklyn only partly explains the Nets success....

The emergence of the franchise as one of the NBA’s buzziest teams comes from a focus on engaging directly with fans.

That's way too much credit to Jay-Z, but it's true the Nets have effectively gone digital:

The Nets are among the top three NBA squads, with 319 million social media engagements from November through May this year, according to the team. In China, the Nets rank first in social media engagement among all NBA franchises, bolstered by a dedicated social media team for the mainland.

...“What if, in addition to broadcasting games on ESPN and ABC, and streaming games on ESPN+, we can have another way of presenting a game on Twitch, with a Twitch gamer calling the game?” said Tsai. “In that Twitch stream you could do sports betting, play interactive games within that engagement experience and earn cryptocurrency. I don’t think it will cannibalize ESPN.”

And the Nets are gaining new fans, and younger ones:

Younger fans now comprise 53% of Nets fans, while YouGov finds the Knicks well behind at 41%. The Manhattan club may be able to claim it’s the king of New York basketball for now, but perhaps not forever.

About the Liberty

On 8/25/21, New York Liberty CEO Keia Clarke and New York Liberty co-owner (aka "governor") Clara Wu Tsai wrote NEW YORK LIBERTY’S FIRST 25 YEARS LIGHT THE WAY FOR WOMEN’S SPORTS, including this self-account/advertisement of progress:

Equity was the blueprint when the Liberty was acquired in January 2019 by the Tsai family. In a short time, and despite the effects of COVID-19, the team has witnessed several franchise-shifting improvements. First, a new home at Barclays Center in the heart of Brooklyn, an arena the team shares with the Brooklyn Nets. Then, a state-of-the-art locker room compound built by a group of female contractors, architects and designers. The front office staff more than doubled, with dedicated business leads within each vertical, and additional support through shared services with the Nets. For us, these short-term, tangible efforts made for long-term intangible gains.

They also wrote:

The league’s iconic Orange Hoodie and the growing retail support, as the Liberty quickly rose to No. 1 in WNBA merchandise sales following the selection of the team’s 2020 first overall draft pick, Sabrina Ionescu, are both indicators that fans want to be a part of something bigger than themselves.

In New York, it is still early in the process, but we are seeing the dividends of that cause-and-effect relationship between investing and positive outcomes. In 2020, during the height of the pandemic, Liberty media coverage increased more than 24% year-over-year. The official move to Brooklyn in 2021 also presented new opportunities for partner investment and alignment. Brands in new categories, such as Empire BlueCross BlueShield, HelloFresh, Talkspace, LVMH and Withings, rose to the occasion, strengthening the case for increased funding.

...To survive and thrive for another 25 years, corporate investment must be greater, national media coverage must be broader, and overall fan support must continue to grow. Simply put, the future success of the WNBA is a responsibility that we all share.

OK, consider that something of a prospectus for new investors. 

Two more columns: hiring vets, and growing lacrosse

On 8/24/21, BSE Global CEO John Abbamondi, a former Navy officer, wrote SPORTS INDUSTRY MUST BRIDGE GAP TO TAP TALENTS OF MILITARY VETS and announced that BSE Global was "implementing the U.S. Defense Department’s SkillBridge program—a no-cost-to-employer internship platform for transitioning service members."

On 8/27/21, former hockey star WAYNE GRETZKY: WHY I'M INVESTING IN LACROSSE hailed alliance with Tsai and Nets' coach Steve Nash as co-owners of the National Lacrosse League’s new Las Vegas team.