The National Basketball Association (NBA) has announced a multiyear partnership with Chinese e-commerce giant Alibaba, designating Alibaba Cloud as its official cloud computing and artificial intelligence partner in China. The agreement coincides with the league's first games in the region in six years, signaling a significant step in rebuilding its presence in a crucial market.
Key Takeaways
- Alibaba Cloud is now the official AI and cloud computing partner for NBA China.
- The partnership aims to use technology to enhance the digital fan experience in the country.
- The announcement aligns with the NBA's first preseason games in Macau since 2019.
- This return follows a six-year period of strained relations stemming from a political controversy.
Details of the Technology Partnership
Alibaba Group confirmed the new strategic alliance, which positions Alibaba Cloud to provide essential technology infrastructure for the NBA's operations in China. The collaboration will focus on leveraging cloud computing and AI services to innovate the fan experience, particularly on the official NBA app available to Chinese users.
The multiyear deal is designed to create more engaging and personalized content for millions of basketball fans across the country. By utilizing Alibaba's robust cloud infrastructure, the NBA aims to deliver enhanced digital products and services, though specific features have not yet been detailed.
Alibaba's Connection to the NBA
The partnership is strengthened by existing ties between the two organizations. Joseph Tsai, the chairman of Alibaba, is also the owner of the Brooklyn Nets, one of the teams participating in the return games in Macau.
This move highlights the growing importance of technology in modern sports entertainment. For the NBA, it represents a strategic effort to reconnect with its Chinese fanbase through advanced digital platforms, a critical component for growth in the mobile-first market.
NBA's Return to the Chinese Market
The partnership announcement was strategically timed with two preseason games held in Macau, marking the first time NBA teams have played in the region since 2019. The games featured the Brooklyn Nets and the Phoenix Suns playing at the Sands Venetian property, a venue owned by Sands China.
According to reports, both games were sold out, indicating strong pent-up demand for live NBA action. The event is part of a five-year contract between the NBA and Sands China, suggesting a long-term commitment to re-establishing a physical presence in the market.
A Massive Market for Basketball
The NBA estimates that approximately 300 million people play basketball in China, making it one of the league's most important international markets. The six-year absence created a significant void for both the league and its fans in the country.
The choice of Macau, a special administrative region of China and the world's largest gambling hub, is also notable. The event has drawn significant attention, with NBA legends like Shaquille O’Neal attending to promote the league's return.
Background of the Six-Year Hiatus
The NBA's long absence from China stemmed from a political firestorm in 2019. The controversy began when Daryl Morey, then the general manager of the Houston Rockets, posted a message on social media expressing support for pro-democracy protests in Hong Kong.
The reaction from Beijing was swift and severe. Chinese state television immediately suspended the broadcast of NBA games, and numerous corporate sponsors in China severed ties with the league. The fallout resulted in what the NBA described at the time as dramatic financial consequences.
Planned preseason games in China were canceled, and the league's relationship with one of its most lucrative markets was effectively frozen. The subsequent years involved careful diplomatic maneuvering to mend the relationship, leading to this year's tentative return.
Strategic Importance and Future Outlook
The return to China, facilitated by the new partnership with Alibaba, is a crucial business move for the NBA. It comes at a time of ongoing political tensions between the United States and China, but both the league and its Chinese partners appear focused on the commercial and cultural aspects of the sport.
The presence of Chinese rookie Yang Hansen adds another layer of interest. The 7-foot-1 draft pick, expected to play for the Portland Trail Blazers, expressed his enthusiasm for the league's return to his home country.
"I want to say firstly, playing for the Blazers is a wonderful thing for me, and I wish that I can take all the players and management and coaches to China for sure in the future," Yang stated through an interpreter. "For sure, I wish [for] more games in China. … That works for me perfectly.”
Yang's potential success could further galvanize interest in the NBA among Chinese fans, similar to the effect Yao Ming had nearly two decades ago. The combination of live games, a strategic technology partnership, and emerging local talent provides the NBA with a multi-pronged strategy to fully re-engage with its massive Chinese audience.