There we were Wednesday, in what was once the Bowling Alley at Madison Square Garden, the original home of “Bowling For Dollars,” also in the space where the WNBA had one of its great initial sendoffs, with the NBA’s newest venture ready to engage new fans with its first-ever draft. With the announcement of the first pick by NBA Commissioner Adam Silver (the subsequent hijacking of the name by ESPN’s Adrian Wojnarowski ), the NBA2K League was officially a “thing.”
The event had all the amazing bells and whistles that only the NBA could do. Senior staff, well dressed, well messaged young talent taking the stage, a full house, the requisite logo’ed hat handoff, even the smattering of celebrities both live (Knicks Gaming scout Jerry Ferrara) and via skype (Mark Cuban, Shaquille O’Neal). The media, not just the gaming media but the NBA scribes, were also there in force, maybe not sure of what to cover or when, but it certainly was a “thing.”
Now that it’s a “thing,” will it work? Hard to see how it won’t or why it won’t, and here are some thoughts as to why.
The NBA Is Putting its Staff, Its Marketing and Its Brand Behind It: In the old days of David Stern showed up for a kickoff event, like with the WNBA, and passed the mantle, it legitimatized the venture. There was no nudge, nudge, wink, wink here by Silver in his full blown press availability with Take 2 Interactive’s Strauss Zelnick and NBA 2K league head Brendan Donohue, it was all serious sell. There is no hint of we will try this as a sales tool and see where it goes, there is 100 percent buy in to make this work as what Silver called “The NBA’s Fourth League.” You will see the players, their teams and the brand mixed in with sales material and marketing campaigns with the NBA, the WNBA and the G League. There was never a doubt that this is a serious effort to engage and grow and expand a brand.
The Messaging Was Clear: It’s GAMING The Teams Are Buying Into, Not Professional Esports: one of the best points driven home by Silver and Zelnick is that NBA 2K is part of the billion dollar world of gaming. That means it can be played on any device, although a console is still best and what will be used by the 17 teams. That casual gaming message is important to distinguish as the sports business world still goes gaga over what esports is and what it isn’t. This is a game with a big following of fans of basketball, which means a causal audience gets the content right away, there is no explanation. Fans of the NBA, just like fans of soccer with FIFA or even fans of the NFL with MADDEN, will understand what is going on with NBA2K. there is no learning curve, and for casual adoption that is key.
Now that’s not to say that there is somewhat of a mix, both on the team ownership side (list of teams who have invested in professional esports) and on the fan engagement side. But by calling this gaming, there was an easy buy in from both the esports world and the traditional sports world that the leadership understands clearly the WHAT and is clear on knowing the difference.
The Players Have Great Stories: One of the missing ingredients still in professional esports is that lack of player storytelling. There are many reasons for this to date in the US, some of which are age, language and cultural, but the NBA2K Draftees clearly have relatable stories that can be told both nationally and in market. The Draft unveiled a very human and quite humorous narrative that was refreshing and probably surprising to many in the room; there were factory workers, custodians, security guards, TSA agents, technicians, cashiers, waiters, truck drivers all being given the chance to chase and now fulfill a dream; albeit one being playing pro video games. While there is no doubt these guys are serious and have played through to be the best of the best, they were smart, well dressed (the league treated many to some new duds the night before), well messaged and very, very authentic. The casual fan can relate, and even the elite players in the NBA, can probably appreciate.
They Will Be In Market, Making The Players A true Asset To The Teams: Unlike other esports investments like Overwatch, where all the teams are being housed and are playing in LA, the 2K teams will be living and training in the cities of the franchises they represent. That presents a great marketing opportunity for teams, especially at a time of year when most NBA players are dialing down their appearances as playoffs (or offseason) loom, to reengage with fans; not just fans of gaming but of the team. Getting these new, buzzworthy personalities out and about in the community to tell the brand story not just of what they are doing but of what the team and the league is doing, is a boon to brand. From school visits (the players are as diverse as those of the NBA) to other cross promotions, the players will be a great reintroduction of the brand to an established marketplace and the best part is, these guys already have built in fan bases that are dedicated to them. It’s not dissimilar form college athletes making the transition to the pro ranks; those fans of their college days can both relate, and will probably translate over, to their new found teams and teammates.
Now the actual events will be at one centrally located place for year one (assume there will be hosting interest as this thing develops) but having the athletes in market is a big step and great for assimilation into all parts of the organization.
It’s VERY Cost Efficient: The spend per team? A $600k pool, but a $300k payout for the champion. Divided between six players, so that’s $50k each, assuming that doesn’t include bonuses for coaches/staff/executives is an easy business write-off for the 17 teams. By the way, don’t look for teams to be adding 2K specific support staff anytime soon. Like the WNBA at the start, there will be a “double up” of job descriptions from team staff, especially junior staff looking for a great opportunity, as things flesh out. That will change over time, but that “all hands on deck” take has been the playbook for most of the “new leagues” launched by the NBA. Lean and mean, then figure the needs.
It’s Experimental Experiential: The NBA has been great at using its other properties as a litmus test for viability. Want to see how live streaming with Twitch works? Start at the GLeague and now pull in NBA 2K. have some brands who are digital first and can’t afford the lofty NBA price? Let’s create deals around 2K. Want to better test or engage with a global fan base? NBA 2K is an interesting place to start. How about virtual gifting or currency? NBA 2K is a digital native dream to try those things. Virtual ad insertions? Don’t mess with your broadcast partners, how about seeing what it looks like in NBA 2K. On and on will the opportunities go.
The Players Play: FIFA has had great success with clubs using the game as a way to better connect and engage with their elite players. Could the skills of the best 2K players actually help the real NBA players on strategy? Not that crazy, or expensive a proposition.
A Revenue Possibility: As teams search for new streams of revenue, 2K may provide those streams; as young digital natives grow up watching more NBA 2K they become bigger fans and are more apt to watch games for life. As teams build out merch opportunities for their new partners, more dollars can flow in. as sponsors look for a different ROI, a low cost digital first opportunity, with a base already in the MILLIONS globally at launch, is now in the offing.
So even with all the pomp and circumstance and buzz, is the NBA 2K League a sure thing? No. There are issues…like the lack of female participants (addressed by Silver as something that will change), the unknown of what player value actually is, the question of whether fans will watch in droves (and where) or show up at NBA 2K events to engage in an arena setting on a regular basis, even the interest in a wide array of sponsors are all potential flags. Then you also have the turnover of any startup, and despite the edict from the league side, the levels of commitment franchises will put into it, and you have more than your share of the usual issues.
However one cannot underestimate the power of the NBA to will a product and put money behind it, the belief amongst the casual fan and the hardcore business mind that the NBA seems to be the disrupter in a professional sports space that embraces status quo, and the fact that Take 2 Interactive has already cultivated the gaming space and built a global audience of users and say this is a whim.
What it is is a really smart gauge of the global sports business environment, a cost effective hedge on the turning tide of sports engagement, and a leadership position set by a property that always seems to be two steps ahead of most of the world.
Is NBA 2K League for everyone? No. Will it succeed in a carved and growing nice? Definitely worth a shot.
