NBA looks to open more stores abroad in international push

Majority of visitors to the NBA app come from outside North America, as the league aims to expand its presence abroad. PHOTO: REUTERS

NEW YORK – The National Basketball Association (NBA) wants to open more retail shops in markets around the world, as the league looks to expand the sport’s presence abroad.

The NBA has opened new locations over the past year in Paris, Berlin, Melbourne, Johannesburg and Abu Dhabi, which sell licensed products such as jerseys, T-shirts and caps. There are now 37 stores across 12 countries.

“It’s been a very busy 12 months,” said Rob Millman, senior vice-president of international licensing and business development at the NBA.

“Our plan is to spark the marketplaces that are underdeveloped.”

International growth is a priority of commissioner Adam Silver.

The league has opened basketball academies to develop young players and negotiated deals with governments to build courts and facilities in a bid to expand the sport’s popularity.

The NBA also started a pro league in Africa, in conjunction with the International Basketball Federation. 

On the court, international players are having more impact than ever in the NBA, which has not had a United States-born Most Valuable Player award winner since the 2017-2018 season, when James Harden won.

International expansion has become critical to the NBA’s future as it tries to attract consumers who may never get a chance to attend a live game in the US or Canada.

Already, the majority of visitors to the NBA app come from outside North America.

The NBA’s first foray into retail was not its flashy New York flagship that opened in 1998.

In the 1980s, the league tried to sell officially licensed products in Asia. But the efforts fell apart, with executives saying they had not conducted due diligence on their business partner. 

Goods sold abroad now account for about 30 per cent of the league’s total merchandising business. The NBA declined to share how much of its US$10 billion (S$13.3 billion) or so in annual revenue comes from those products.

The league is also expanding the use of attractions, such as the NBA Courtside Restaurant it opened in Toronto and the NBA Park in Gramado, Brazil, a three-story entertainment complex that includes a court, restaurant and store.

These destinations often include some kind of merchandising component.

The most recent store opening was last week at a mall in Manila. Millman said the NBA does not have an exact number of stores that it is targeting, but executives are looking to boost business aggressively in certain markets.

That includes Mexico, and he said the league is working on “catching up” in Latin America. 

“A lot of this has to be fluid. Maybe it’ll be 50, maybe it’ll be 100,” Millman added. BLOOMBERG

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