David Rosenthal: belief

Transcript context

…Yeah. Even if they don’t necessarily attract the US audience like they could attract other non-US countries who become huge fans, they may do a great job actually marketing to the US and figure out a TikTok-like situation for it to be an amazing US product developed and owned in China. I think that’s what’s interesting about doing this episode. I’ve come to realize, yes, just like with Facebook and social networks and lots of other businesses we cover on this show, the US audience has the NBA monetizes at a much higher rate than the international audience right now. But that’s going to continue changing over the time. Just purely in terms of numbers, the US doesn’t really matter. If a billion people watched the NBA last year, how many of those were Americans? 10%? 15%? Yeah, it would hurt if that went away. The vast majority is non-US. If China captures that, that’s terrible for the NBA. It’s worth calling out that the value of these teams effectively comes from three things. The future growth from international, the future growth from youth spending at the level that you expect them to spend and continuing to be NBA fans. What we haven’t talked about is beachfront property, where owning an NBA team is incredibly scarce. It’s unlikely that they’d be competing for the same set of billionaires to buy the teams, but if you 30, 40, 50 new pieces of beachfront property when there really only have been 150 total available to US team purchasers.…

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