Rockets sign Marketing deal with East West Bank after adding Lin

Here come the LOS (lin only sponsors)

 

filipino?

 

The profits are shared with all 30 teams in the NBA. Spurs and Knicks and Rockets all get the same cut of it.

 

It is partially correct, but Rockets only contribute a portion of it. The Lakers will contribute the most because they make the most. In profit-sharing plan, Knicks will probaly contribute more than the Rockets, and with he Spurs last compared to those teams.

 

Most "in-arena" revenue (i.e. signage, naming, merchandise) is kept by the team itself and is not required to be shared under the profits sharing plan. The "on-air" exposure is most likely signage that will be seen during games.

 

Myth: Lin cannot afford a bed.


Truth: Lin eats panda meat for dinner.

 

In short, The Rockets do not have to share ad revenue that is displayed inside of the Toyota Center. Meaning, the banners you see inside the complex and the revenue that comes with them are about all they get to keep all to themselves.

Any kind of merchandising like Jersey's, etc. and national TV ad revenue is shared among all NBA teams.

Meaning, these local partnerships are very minimal to overall revenue generation. However, the Rockets are probably able to negotiate much better deals now with extended global market attention being brought overseas. Id say they are probably getting a much better cut in ad revenue inside the TC than they have gotten since Yao was healthy with the Rockets.

Now knowing this, can we please stop creating threads for Jeremy Lin, and keep everything under a big giant Jeremy Lin thread? This is not that big of a deal.

 

Exactly. The marketing revenues are just an added bonus. I think a big part of the Lin signing is how it will effect Les Alexander's other ventures, particularly in China/Taiwan. He used Yao to break into China and is likely going to use Lin in a similar fashion. The more money Alexander makes, the more he may be willing to spend on the Rockets (hopefully).

 

According to Larry Coon's FAQ on revenue sharing, there's contribution limit and the end result is more like taxing more for the rich and saving the poor. His example maybe simplified, but the high revenue team actually still make tons of money, to a point that most of the profit are kept.

http://www.cbafaq.com/salarycap.htm#Q24

Team A Team B
Total revenues (minus expenses): $84.0 million $281.0 million
Profit before revenue sharing: ($20.0 million loss) $165.0 million Percentage to fund pool: 55.8% 55.8%
Amount contributed into pool1: $46.9 million $156.8 million
Total pool size: $2.073 billion $2.073 billion
Amount received (1/30 of pool): $69.1 million $69.1 million
Net paid/received: $22.2 million received $87.7 million paid
Contribution limits: N/A $48.0 million
Actual amount paid/received: $22.2 million received $48.0 million paid
Profit after revenue sharing: $2.2 million $117.0 million

I feel Lin can actually bring far more money to Les than we'd expect, if you know the ad rate in Chinese market and the tv rating of rockets games with yao/lin...

 

The Les/Yao exploitation was widely blown out of proportion on here honestly. Yes, Yao helped get him in the door with a few business ventures, but most of them were tied to the Rockets sponsorships other than his Wine company that he worked with Yao on.

One of the bigger deals he worked on over there actually led to Shane Battier and Chuck Hayes getting shoe deals with Peak. Who says NBA players don't want to play in Houston? They should.

For a billionaire like Les, Im sure he wasn't all the sudden busting at the seems with cash just because he sold a couple bottles of Vino. However, he would be dumb to ignore the financial implications of using the Rockets brand in a few business ventures to make a little extra on the top.

Like you said, its more money to spend on the team to do things like buy draft picks, etc.

 

Which is why the entire NBA should be rooting for Lin to succeed in Houston. Especially the Sacramento's, and the Charlottes of the NBA. Just imagine in the previous CBA how much different the financial landscape of the NBA would have been had Yao Ming never stepped foot on an NBA court, much less Houston's court.

 

this is the second one

the first one was that big tires factory (all revenue going to Rockets because are Toyota Center Ads).

 

Lets be honest. Deals like this is primarily the reason why Lin was signed.

 

It played a part but I don't think it was the primary reason. Otherwise they would have given him a lot more money.

 

Are you sure the Rockets having no serviceable starting PG didn't also have a role? Also brings some media attention to the Rockets.

 

Wrong. The primary reason he was signed is b/c the Rockets believe he is a starting NBA PG. His salary reflects this belief (i.e. he's not getting superstar money). For example, the consensus on this board seems to be that Dragic is going to be a slightly better PG overall which is also reflected in their respective contracts (same money but better terms for Dragic).

Marketing considerations may be a piece of what Lin's value to the team is, but it's a small one. First, the money that can be made directly from Lin is limited (i.e. in arena revenue). Second, and perhaps more importantly, any money that's going to be from Lin at all is dependent on on-court performance. If he doesn't play to a starting NBA players level (i.e. his contract level) his marketing potential is going to plummet. Even if he's Asian, there aren't going to be a whole lot of companies that would want to associate themselves with a loser who is overpaid and overhyped.

Signing Lin to primarily to get small contracts here and there would be ridiculous and shortsighted.

 

I think almost everyone here pretty much knew Les wanted Lin for all the marketing.

 

I think they mean "advertising" don't they? Unless East West Bank is now doing direct mailers and providing ad copy for radio spots on behalf of the Rockets.