Fight for Freedom. Stand With Hong Kong.October 9, 2019 -
Categorized in: IAG News
“Fight for Freedom. Stand with Hong Kong.”
Those seven words were included in a now-deleted tweet by Daryl Morey, the general manager of the Houston Rockets.
Those seven words could result in the loss of millions (if not billions) of dollars of revenue for the National Basketball Association (NBA).
The NBA has aggressively pursued a strategy to build large fan bases outside of the United States – especially in China. According to CNN, nearly 500 million people in China tuned in to watch NBA basketball last season.
The NBA first secured television deals with Chinese broadcasters in 1989, the same year as the Tiananmen Square protests that brought global attention to student protesters demanding additional freedom from a communist government.
Those seven words have put the NBA in a pickle that did not exist in 1989. I am fairly certain that an NBA general manager expressing support for the freedoms sought by the Tiananmen Square protesters would have been a nonissue in 1989. In fact, they likely would have been seen as patriotic.
Last Friday those seven words caused Chinese officials to remove NBA merchandise from on-line retailers and cancel the broadcast of NBA preseason games in China.
Now the NBA has a choice. They can either stand with an NBA team employee to support the freedoms sought by Hong Kong protesters or risk losing millions of dollars from Chinese fans who believe that the Hong Kong protesters are unpatriotic lawbreakers.
If you’re not a follower of the NBA, but you kept reading, its because you likely want to see how this applies to you. Well, while less significant in scale, such choices are common in your everyday life. The impact of economic gains or losses can change your opinion of what is right and wrong.
Our commitment to our clients is straightforward and can be summed up in seven simple words: financial planning advice in your best interest.
Those seven words should be much less controversial.
Quote of the week: Milton Friedman: “Concentrated power is not rendered harmless by the good intentions of those who create it.”
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