OPINION | This article contains commentary that reflects the author's opinion.
Although there is no embargo against China, a communist country that lacks most of the basic freedoms afforded by Americans, American consumers and employees have used these freedoms to express disappointment with companies such as Google, Netflix, and now the NBA for doing business with countries that overtly oppress their citizens.
Houston Rockets general manager Daryl Morey’s controversial tweet contained the words “fight for freedom, stand with Hong Kong.”
The caused an uproar, but the only people upset seem to be the Chinese Government. And because the the NBA has deep financial ties to China, when China is upset, the NBA has to react. The Houston Rockets and the NBA both put out statements condemning Morey’s support of Hong Kong. The Chinese government even cancelled the Brooklyn Nets’ appearance at a charity even in Shanghai hours before they were scheduled to appear.
Morey tweeted an apology in an attempt to preserve his employment.
2/ I have always appreciated the significant support our Chinese fans and sponsors have provided and I would hope that those who are upset will know that offending or misunderstanding them was not my intention. My tweets are my own and in no way represent the Rockets or the NBA.
— Daryl Morey (@dmorey) October 7, 2019
Ted Cruz and Beto O’Rourke agreed that Morey was doing the right thing by standing up for his beliefs.
As a lifelong @HoustonRockets fan, I was proud to see @dmorey call out the Chinese Communist Party’s repressive treatment of protestors in Hong Kong.
Now, in pursuit of big $$, the @nba is shamefully retreating. https://t.co/7waMde5KrM
— Ted Cruz (@tedcruz) October 7, 2019
It’s very American to see two political opponents unite in the defense of civil liberties.
The only thing the NBA should be apologizing for is their blatant prioritization of profits over human rights. What an embarrassment. https://t.co/bbiwCBTwc1
— Beto O'Rourke (@BetoORourke) October 7, 2019
Fox Business reported on the impact of the China’s disapproval.
Several China-based NBA sponsors suspended ties with the Rockets over Morey’s now-deleted tweet, which expressed support for pro-democracy protesters in Hong Kong. The tweet drew a public rebuke from Rockets owner Tilman Fertitta and an apologetic statement from the NBA, which, in turn, rankled several U.S. politicians who felt the league had sided with financial interests over human rights.
The backlash placed strain on one of the NBA’s most lucrative corporate partnerships – a five-year deal with Chinese digital streaming firm Tencent said to be worth $1.5 billion. Tencent said it would halt broadcasts of Rockets games over Morey’s tweet. Sportswear brand Li-Ning, the Shanghai Pudong Development Bank and the Chinese Basketball Association all suspended their work with the franchise, according to Reuters.
“I have always appreciated the significant support our Chinese fans and sponsors have provided and I would hope that those who are upset will know that offending or misunderstanding them was not my intention,” Morey wrote in a statement on Twitter. “My tweets are my own and in no way represents the Rockets or the NBA.”
The NBA has spent the last two decades cultivating a devoted fan base in China. The league’s business in the country is worth more than $4 billion as of 2018, or $133 million to each NBA franchise, according to Forbes.
But the potential financial impact isn’t limited to the Rockets. The NBA 2K League, the league’s esports venture and a major investment, recently announced plans to partner with Gen.G to place a franchise in Shanghai – the first time the NBA has placed a team outside of North America.
It’s unclear if those plans are in jeopardy given current tensions. Representatives for the 2K League and Gen.G did not immediately respond to a request for comment.
The debate developed as top NBA officials tour Asia as part of a preseason promotional slate. NBA Commissioner Adam Silver is set to speak at a press conference in Shanghai on Thursday. The Brooklyn Nets and the Los Angeles Lakers will play preseason games in China on Thursday and Saturday.
Facing mounting pressure, the NBA acknowledged in a statement last Sunday that Morey’s tweet had “offended so many of our friends and fans in China, which is regrettable.”
“While Daryl has made it clear that his tweet does not represent the Rockets or the NBA, the values of the league support individuals’ educating themselves and sharing their views on matters important to them. We have great respect for the history and culture of China and hope that sports and the NBA can be used as a unifying force to bridge cultural divides and bring people together,” NBA Chief Communications Offer Mike Bass said.
Brooklyn Nets owner Joseph Tsai, who co-founded Chinese e-commerce giant Alibaba, said that Morey’s tweet had touched a “third-rail issue” in China and was “so damaging to the relationship with our fans in China.”
There has been a trade war between America and China that has lasted months and although diplomats are scheduled to meet in Washington, D.C. this week, there is little hope for a compromise that satisfies both countries.
Should American companies boycott countries that do not protect the freedoms of their citizens?
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