When Vivek Ranadive purchased a majority stake in the Sacramento Kings, it was clear he and the rest of the ownership group planned to expand the franchise and overall brand to India. After all, the ‘NBA 3.0′ idea was presented to the NBA’s Board of Governors as a selling point which would allow Ranadive and his group to purchase the Kings.
Expanding beyond the borders of the United States though isn’t anything new – well – at least not for some of the most popular sports franchises in the country, like the Los Angeles Dodgers and Dallas Cowboys.
David Carter, executive director of the University of Southern California Sports Business Institute recently appeared on KQED Public Media with Scott Detrow and suggested that the Kings using India to their advantage could have a similar impact as Mexico for the Dallas Cowboys and Asia for the Los Angeles Dodgers.
I think the Dallas Cowboys have done a decent job, penetrating into Mexico. I think historically, some of the baseball teams like the Dodgers who’ve been very involved with Asia for a very long time, with scouting and player development.
While teams like the Houston Rockets or New York Yankees have used players to gain an advantage in foreign countries (Yao Ming, Hideki Matsui, etc) Detrow seems to suggest a longer standing financial stability by establishing the franchise brand in the new locale, rather than simply having a player attempt to build the brand in the said country.
Of course, winning trumps all, but it certainly doesn’t hurt to have a solid stream of revenue coming from outside the United States.