NBA in Guangzhou? Not tomorrow
(China Daily)
Updated: 2003-08-26 09:55

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