What financial benifits does Yao bring? I am a fan of Yao and often wonder what kinda financial benifits Yao brings to the Rocket. Don't get me wrong, Yao is a great asset on the court for the team but the owner and general manager must also have antipicated that Yao was gonna make a lot more money for the franchise when they signed him three years ago, given his huge appeal and fan base in the far east. I would like to know what this has meant in reality in money terms? Has Rockets fully exploited the marketing potential of Yao? If yes, in what way? Has Yao's presence increased tickets sales? More shirts? Television money? Does anyone has any figures? What do you think CD should have done and what would u do? If I was CD, I'd definitely secure more sponsorships from China. You'd be surprised how many Chinese companies would love to have their names assocaited with Houston Rockets and are willing to pay big bucks for Yao.
I'm not sure about the numbers, but I think the value of the Rockets franchise has increased by about $100 million.
Toyota wanted to be and I believe actually is now the largest car seller in China. Their bid to get the new arena naming rights was directly attributable to YAO.
Thanks, I didn't know that. It's nice to know the reason in a welled mannered response unlike the two previous immature posters.
"Companies, People, Ideas Ming Dynasty Kurt Badenhausen, 02.16.04 Back to Slam Dunk Before LeBron, there was Yao. One year before LeBron James entered the NBA, the Houston Rockets made 7-foot-5 Chinese star Yao Ming the league's first draft pick. Like James, Yao signed for the league's rookie maximum salary, then $18 million over four years, and earns an additional $10 million in endorsements. While Yao won't ever sell sneakers in the U.S. to the extent that James will, his overseas potential is enormous, particularly in China, a market where the NBA and sneaker companies see great growth potential. Consider that in the Sporting News annual list of the most powerful people in sports, Yao was the highest-ranked athlete, ahead of James and Tiger Woods. About half the Internet traffic to NBA Web sites comes from outside the U.S., with China leading the way. Basketball is so popular in China that Yao was voted to start last year's all-star game ahead of the Lakers' Shaquille O'Neal because of Internet votes sent by fans from China. Sneakermaker Reebok is banking on Yao's popularity to help it close the gap on rival Nike in China. This fall Reebok signed Yao to a multiyear deal reportedly worth $70 million. Understandably, the NBA as well is charging ahead in China. The league signed broadcast deals this season in China that gives it access to 300 million households.Just how popular is Yao? When the Rockets are on TV in China, there is a larger audience watching Yao play than the combined audience of all the other games that night in the U.S., according to Rockets President George Postolos. " http://www.forbes.com/finance/lists...ssListType=Misc&uniqueId=322525&datatype=Misc "Team Value1 $ 369 mil (#4)" http://www.nbawire.com/houston_rockets_team_info.html "Franchise Value: $234M, 8th overall (Source: Forbes, 2002)" from 02 to 04, the value of the franchise went up 130+ million. the % increase from 03 to 04, the rockets' 33% ranked highest.
alot of companies probably want to be the number one seller in China Yao made the Rockets even more marketable than they were before, any company that got the naming rights for the new arena was going to get international attention due to the Rockets and Yao. Toyota didn't purchase the naming rights for the arena just because they were an asian company.
I don't know if you guys are being sarcastic with the question but I'll answer it since economics is my specialty. For whatever reasons -maybe praticality- most asians in the U.S. particalulry chinese etc like the Japanaese cars for their durability and efficiency, price/cost benefit etc.. What's more improtant is what Toyota HQ is trying to do to penetrate the chinese mainland market. Right now GM and Volkswagon have the lead market shares lead 1 and 2 respectfully in China. Toyota is a recent arival in the chinese market -only a couple of years- compared to the GM or VW who have been there for more than a decade. Thus becus Toyota knows that every Rox game is televised in China they know the TC name will also appear and help market their cars and give them deeper market penetration -all this doing off the back of Ming. I don't think Ming has a direct sponsorship deal with Toyota ( someone tell me otherwise) so they are basically being parasites out of Ming's popularity in china.
sorry your wrong, VW and GM have the number 1 and 2 share out of foreign car makers in mainland China. Toyota is basically a newcomer trying to fight for greater market share. Actually right now Hyundai (Korean) has greater growth in the chinese car market than the Japanese carmakers out of the Asian car makers. I wonder why??? hint hint wink wink . . . .
Since this thread has wondered its ways to cars, instead of rockets, i am going to make a citizens lock on this thread.
dont quote me on this, but i remember reading in a business week article that since yao's rookie year advertising revenue for the rockets has risen 300%. in the long run yao has the potential to reach jordan levels when it comes to marketing.
what with all the love the chinese and japanese have been sharing, Toyota has not been doing very well in China. I believe GM has better appeal there than Toyota. It would be a more logical argument to say that T-Mac helps the rockets get endorsements from McDonalds (Big macs), and even we know that's not true.
