Houston could lose $25 million in sponsorships this season due to China controversy
The tweet that Houston Rockets GM Daryl Morey sent out in support for Hong Kong has certainly caused a massive stir around the Association. China didn’t like what Morey did and now, the Rockets might face dire consequences.
According to Marc Stein of The New York Times, Houston could potentially lose $25 million in sponsorship this upcoming season because of the controversy.
An extensive sponsor and media boycott of the Rockets soon spiraled. China’s punitive response could cost the Rockets around $25 million in sponsorship losses this season, according to one person with knowledge of the situation who was not authorized to discuss it publicly. It didn’t take long for a number of rival teams to start besieging the league for estimates of how much they stand to lose, too. Yahoo Sports reported Wednesday that at least five unnamed teams fear that the $116 million salary cap projected for the 2020-21 season could drop by as much as 10 to 15 percent.
Houston we have a problem.
China is the second-largest market for the NBA. A lot of the money that flows into the league’s pockets come from the Asian powerhouse.
The Rockets also have (or had) a dear place in China’s hearts. Their homegrown big man Yao Ming played his entire career and became an international superstar in Houston.
The backlash from this controversy is far from over. How severe it is, we still don’t know. What we do know is that there will be drastic changes in the NBA in the near future as a result of this firestorm that Daryl Morey lit up.