NBA news: Could a fresh executive in China be the key to sustaining salary cap?

The NBA’s salary cap is projected to decline due to revenue halts from the impacts of coronavirus. Could a repaired relationship in China help?

The NBA has entered unexpected and uncharted waters due to the impacts of novel coronavirus on the globe. Fans got good news on Tuesday night that the NBA, NBPA, and Board of Governors were advancing on plans to resume play in one way or another, but long-term, things look bleak from a financial standpoint.

Consider the fact that the league hasn’t played any games since March. That means no revenue from TV, ticket sales, and in-arena merchandise, essentially all cashflow is halted for the time being.

TV ratings for the NBA are down this year in large part due to injured stars across the board in both conferences.

Add on top of that the fact that the season kicked off with a broken relationship with its streaming partner in China due to pro-anti-state Tweets from Houston Rockets GM Dary Morey.

China has called for Morey to be removed from his position before they repair their relationship with the NBA or stream any further NBA games. The NBA has a massive following in China thanks to the global impact brought by Yao Ming and, later, Jeremy Lin (who became the first Chinese-American to win an NBA Championship in 2019).

The lost revenue stream from the Chinese market is not minuscule.

According to reports, including one from Marc Berman of the NY Post, the cap is already projected to decrease for next season due in part to the revenue losses across the board.

The league, though, has made moves that could potentially reinstate its relationship and at least part of the cash flow coming from Chinese streaming services by hiring Michael Ma to lead the league’s business ventures in China, according to CNN.

CNN quoted an assistant professor of sport management at Open University of Hong Kong, Weisheng Chiu, saying this was a brilliant move:

"“[Rebuilding the relationship with Beijing is] the first task for Michael Ma, and I also think this will be the most challenging task for him.”"

That’s a tall task for Ma, but one that his experience and connections in mainland China may have prepared him perfectly for. Ma’s father was one of the leading reasons NBA games came to Chinese CCTV in the 90s, and was also a longtime adviser to Yao Ming until just recently.

There is no public timetable or expectation on when Ma might be able to repair the relationship with China and the NBA, if he is able to at all. Chiu, though, noted to CNN that he thinks Ma will be able to get the job done.

It’s not clear how likely it is that Ma could get China to approve NBA streams if the season returned this year, but given China’s firm stance to this point, it feels unlikely to happen this season.

But if Ma can get the revenue back from China for next season or soon after, it’s a stream of revenue that will be folded into the league’s Basketball Related Income, a factor directly tied to the salary cap. Long-term, Ma’s addition to the league’s Chinese ventures is impactful for every team and player.

There’s an uphill climb in order for Ma and the NBA, but the wheels are in motion.