Chapter 143 Cooperation with the NBA (5,000-word chapter)(1/2)
After reaching a preliminary agreement on share transfer with Jerry Bass, Kuratos Blank negotiated with Reebok's controlling shareholder Paul Falman, and finally acquired 51% of the Reebok shares in Paul Falman for $90 million on March 30.
NBA is headquartered in the Olympic Tower building at 645 Fifth Avenue in New York.
On April 2, Li Zhiwen and Li Zhiwen took Kuratosblank, He Chaoqiong and his bodyguards stood downstairs of the "Olympic Tower" building.
When the pedestrians coming and going around would involuntarily stare at Li Zhiwen and everyone. There was no way, Li Zhiwen's group of people was too weird. How could it not be noticed if yellow people, white people, and black people were combined together?
After a while, under the guidance of the front desk, Li Zhiwen took everyone upstairs with an elevator and arrived at a conference room at the NBA headquarters.
At this time, an old man and a middle-aged man were sitting in the conference room waiting for them.
The old man is naturally Larry O'Brien, who was the US Postal Secretary from 1965 to 1968 and was elected as chairman by the Democratic National Convention twice.
In 1972, Lario Bryan was secretly installed with a wiretap in the president's office of the Watergate Building, causing the famous "Watergate Incident".
In 1975, Lario O'Brien was appointed president by NBA. The first major event after O'Brien took office was to successfully merge ABA, solving the problem of soaring wages and falling box office due to vicious competition between the two leagues. In 1979, the three-point line was established.
In Li Zhiwen's impression, Lario Brian left office in 1984, and shortly after Lario Brian left office, the NBA named the Champions League the Lario Brian Cup.
The middle-aged man is David Stern. He was originally the legal counsel of the NBA and was promoted to vice president of the league not long ago. On February 1, 1984, David Stern became president of the league.
David Stern is the president of the NBA League for the longest time. During his tenure, he signed broadcast agreements with major American television networks one after another, allowing NBA to be seen through live broadcasts and people all over the world.
David Stern actively cooperated with major companies. During his tenure, Nike and Adidas sponsored the NBA, so he can be said to be Li Zhiwen's helper this time.
David Stern also formed the American Dream Team, which made the NBA more people pay attention to.
Of course, for China, David Stern's most famous story in China was that David Stern went to China for the first time in 1989, with the purpose of negotiating with CCTV to broadcast the NBA competition.
After waiting in the cold spring for more than an hour, David Stern finally met the CCTV leader and then used various methods to get CCTV to agree to the broadcast.
Li Zhiwen took Kuratosblank and He Chaoqiong into the conference room, walked up to the old man and said, "Hello, Mr. O'Brien." Then he turned to the middle-aged man and said, "Hello, Mr. Stern."
"I didn't expect that the boss who acquired the Lakers this time was actually a Chinese. Hello, sir." Larry O'Brien said.
"Mr. O'Brien, you are wrong. I am not Chinese, I am from Hong Kong, and my name is Li Zhiwen." Li Zhiwen said.
"Oh? I didn't expect to be a Hong Konger, Mr. Li, I'm sorry, do you understand basketball? Do you understand the operating mode of the NBA team? You must know that the Los Angeles Lakers are one of the most important teams in our league. I don't want to hand over the Lakers to a boss who knows nothing." Larry O'Brien said bluntly.
Li Zhiwen was not angry at Larry O'Brien's words. If he was angry, he would probably be angry all these days.
Li Zhiwen said calmly: "Of course, Mr. O'Brien, just a while ago, Mr. Jerry Bass asked me the same question, and even ridiculously said that as long as I mentioned the players from various positions of the Lakers, I would agree to sell the shares to me."
"The result is as you think. I came to you. I won't talk about such a simple question. Let me first talk about my understanding of basketball."
"...Mr. O'Brien, the three-point line you designed last year will bring epoch-making significance to the NBA. Of course, you can't see this benefit now. After all, the players are now set. When the children watching the NBA understand this change, many thin players who are not suitable for the NBA will make a fortune in the NBA because of the three-point line."
When Lario Bryan first heard Li Zhiwen's analysis, he didn't care. He thought that an Oriental person knew what basketball was. Basketball was a team sport, and Chinese people could only play small balls like table tennis.
But the more Larry O'Brien listened to Li Zhiwen's analysis, the more he felt that this person should not be underestimated. His understanding of basketball even exceeded that of many basketball coaches and basketball players today, although Larry O'Brien did not know basketball.
David Stern, who was standing by, also heard many opinions and many good ideas from Li Zhiwen's words.
As for Kuratos Blank, although he is an amateur basketball enthusiast, he scoffed at the views that Li Zhiwen proposed the "small ball tactics" and the prediction that there would be five players of the same height on the court and that the differences in basketball positions in the future will become blurred.
He Chaoqiong looked at Li Zhiwen with a fanatical look. She had no idea about basketball, but she felt so handsome when she saw Li Zhiwen giving advice to Jiangshan.
Larry O'Brien was silent for a while and said, "Mr. Li, I'm sorry for my rude words before. Your views have a great impact on me. I admit your achievements in basketball, but why are the Lakers? Even any other team can do it."
"To be honest, our NBA league is in a loss period, and the Lakers are one of the few profitable teams. Maintaining the stability of the Lakers is a must for our league, otherwise the NBA may not be able to hold on."
Li Zhiwen thought for a while and said, "First of all, I am a Lakers fan, so the Lakers are my only choice."
"Secondly, I have confidence in making the Lakers better. The Lakers have players I like, and I can make the Lakers a style that differentiates them from other teams."
"You know that NBA teams now start with defense, and the game is terrible, but I can make the Lakers' game more interesting, although the Lakers still focus on defense."
"The third aspect is that I can make the Lakers famous to drive the development of the NBA and even other teams."
"I won't sell the first row seats on the home side. I will reserve them for Hollywood stars and invite them to watch the Lakers games. You also know the media attention and brand effects that stars bring."
"I'll hire a Hollywood front-line production team to make the coolest promotional videos for the Lakers, so Mr. O'Brien, please believe in my strength."
Larry O'Brien thought for a while, stood up and stretched out his hands and said, "Mr. Li, you have successfully convinced me that the cooperation is pleasant. I hope the Lakers will do better and better in your hands."
"Of course, I love the Lakers team. Thank you for your trust, Mr. O'Brien." Li Zhiwen also reached out and held Lari O'Brien's hand.
After Li Zhiwen and Larry O'Brien shook hands, they did not choose to leave, but sat back in their seats.
Larry O'Brien and David Stern were a little surprised. The conversation between the two parties had been completed. Is there anything else in Li Zhiwen?
Li Zhiwen smiled and said to Larry O'Brien and David Stern: "Mr. O'Brien, Mr. Stern, the Lakers' issues have been discussed. Now, as the chairman of Reebok and the chairman of Hong Kong Universal Television, I want to cooperate in depth with the league."
Lario Brian and David Stern were a little surprised. Unexpectedly, Li Zhiwen had other identities, but he realized that the boss of an NBA team did not regard the team as a playful nature. I believe this young master is no exception. Lario Brian said: "Mr. Li, you surprised me so much. Please tell me, what cooperation should be carried out?"
"Mr. O'Brien, on behalf of Reebok, I want to win the exclusive endorsement of the NBA team jerseys and sneakers." Li Zhiwen said with a smile.
"Impossible, not to mention that sandknit has already won the jersey production rights of ten teams, we cannot restrict players from wearing Reebok sneakers even when they have a sneaker." Before Larry O'Brien could speak, David Stern, who is in charge of business, was already speaking.
"Oh? That's it. Mr. Stern, you may misinterpret what I mean. Since sandknit has won the jersey production rights for ten teams, I hope the remaining jerseys can be produced by us Reebok."
"For jerseys, our Reebok has adopted new technology and designed a new jersey that can effectively help players sweat. You also know how hot it is for players to play a game." Li Zhiwen said.
"As long as the price is right, I think the league will agree to the sponsorship of Reebok," said David Stern.
"100 million US dollars, a lifelong contract." Li Zhiwen said.
"Oh, sir, you're robbing, and the Union has no habit of signing a lifetime contract." As a shrewd Jew, David Stern knew the importance of a long flow.
"Well, Mr. Stern, you won. Since you don't have the habit of signing a lifelong contract, how long is the longest time? I like stability instead of renewing it for a few years." Li Zhiwen said.
"Fifty million USD 20-year contract" said David Stern.
"Mr. Stern, to your words, you are robbing. Now the total market value of the entire NBA alliance is only 400 million US dollars. Just because of the development of the alliance, I don't know if there will be NBA in twenty years. As a result, your 20-year contract will be 50 million US dollars." Li Zhiwen said in surprise.
David Stern's face turned slightly red and retorted: "Mr. Li, since you are willing to sign a lifelong contract, you must be optimistic about the development of the league."
"Mr. Stern, for my previous statement, it was a venture capital. I was willing to bet, but for twenty years, I didn't. Besides, there were only twelve teams' jersey production rights, and 50 million was too high." Li Zhiwen said tit-for-tat.
"Then I'll hear what Mr. Lee meant?" Larry O'Brien stopped David Stern and said.
"Twelve teams, 40 million US dollars, 30 years of jersey production rights." Li Zhiwen said.
David Stern wanted to say something else, Larry O'Brien said with a final say: "No problem, I agree."
"I want to print our Reebok brand logo on the game jersey." Li Zhiwen said.
"There is no such tradition, the Alliance does not have this tradition," said David Stern.
"Traditions are all established by predecessors, and history is created by people." Li Zhiwen retorted.
"Add $10 million, I agree," said Larry O'Brien.
"The deal is completed!" Li Zhiwen said quickly, afraid that the two of them would regret it.
To print the brand logo on the NBA team uniform, Nike will have to wait until after 2015, while Li Zhiwen only paid 10 million US dollars to do it.
This will greatly increase the exposure rate of Reebok, after all, Reebok's current sales in the United States are only US$1.5 million.
"Two gentlemen, let's continue to talk about jerseys. I'm not saying that players will not choose their own brand of sneakers. You should know that the league's star players are a minority after all, and more of them are ordinary players. I just provide them with sneakers."
"Now the league players are almost wearing Converse canvas shoes, and they are just low-top versions. My god, this is simply murder. How poor are these sneakers wrapped and cushioned? Players have to put on several layers of socks to protect their ankles."
"We designed a shoe to protect players' ankles, which used our Reebok's latest cushioning technology." Li Zhiwen said.
In fact, after Li Zhiwen bought Reebok, he did not go to Reebok to see it, nor did he have the cushioning shoes mentioned by Li Zhiwen at all. However, this is not important. As long as Li Zhiwen wins the NBA sneaker contract, Li Zhiwen can transform the shoes out. He doesn’t know how to design it himself, so just copy it. The AJ series is placed in front of Li Zhiwen. As long as Li Zhiwen tells the feeling of using AJ, I think Reebok’s designers can do it.
Larry O'Brien and David Stern do not pay attention to the players' ankles. They are more concerned about how much money the league can get this sneaker contract. After all, it is hard to cook without rice.
So David Stern said: "How much money can Mr. Lee sponsor?"
Li Zhiwen took a sip of the coffee on the table, but instead answered directly, he asked, "I don't know what Mr. Stern means."
David Stern was stunned by Li Zhiwen's re-question. After a while, he came to his senses. He thought for a while and said, "A twenty-year contract of 50 million US dollars."
Li Zhiwen wanted to say something, and David Stern said directly: "Mr. Li, you have to know that sneakers and jerseys are different. Who would buy jerseys except fans? But sneakers can be worn by Switzerland."
"Okay, so happy cooperation!" Li Zhiwen said with a smile.
Hearing Li Zhiwen's words, David Stern breathed a sigh of relief. He was really afraid that Li Zhiwen would bargain.
"What about the broadcasting rights of the TV station?" Li Zhiwen asked.
David Stern said thief: "No need for this. At present, NBA only has a market in the United States. Even if Mr. Li makes contributions to NBA."
Li Zhiwen shook his head. David Stern regarded himself as a fool. If he didn't sign a contract, NBA could take back the broadcast rights at any time. Li Zhiwen finally made the market bigger, but he ended up making wedding dresses for NBA. Li Zhiwen would not do such a thing.
Seeing Li Zhiwen shook his head, David Stern sighed, no wonder many people say that Chinese people are as smart as Jews. David Stern didn't believe it before, but now through Li Zhiwen, David Stern agrees with this view. It seems that he has to pay attention to the Chinese market early.
Li Zhiwen did not expect that he would let David Stern pay attention to the Chinese market earlier, so he went to the China CCTV building to stand guard as soon as he took office.
"What does Mr. Lee mean?" said David Stern.
"The exclusive broadcast rights of the entire Asian region for 20 years are $50 million." Li Zhiwen said
"Mr. Lee, exclusive broadcast rights are impossible, and $50 million is too low," said David Stern.
"Mr. Stern, you should know that NBA is blank in Asia, and it will take me a long time to promote NBA." Li Zhiwen said.
David Stern still shook his head and said, "Mr. Li, you can't calculate this way. Don't you look at the benefits after the promotion is successful?"
"What does Mr. Stern mean?" Li Zhiwen said.
"The 70 million USD 20-year broadcasting rights, but not exclusive," said David Stern.
To be continued...