(China Daily)
Updated: 2008-01-16 11:51

US professional basketball league the National Basketball Association formed its NBA China subsidiary yesterday, to cater to local enthusiasts.

Five outside partners - four Chinese companies and Walt Disney Co - bought an 11 percent stake in NBA China for $253 million, giving the new subsidiary an initial valuation of $2.3 billion. NBA holds the majority 89 percent stake in the venture.

The four Chinese companies - Bank of China Group Investment, Legend Holdings Ltd, Li Ka-shing Foundation and China Merchants Investments - take 6 percent of the venture, while Disney holds 5 percent.

"It is the first time the NBA has taken outside investors," said Timothy Chen, chief executive of NBA China. "The outside partners will contribute capital, resources, expertise and shared vision to develop our new body and they will help NBA China to achieve its potential in the region."

NBA China's partners will seek opportunities to broadcast more NBA games in the nation, Chen told China Daily.

NBA China will have the right to create league teams in China and will own all broadcasting and merchandising rights, according to a statement. "We'll open an NBA shop in the future, where we'll supply products from partner companies to Chinese basketball enthusiasts," Chen said.

The NBA has seen enormously popularity in China, with an estimated 300 million basketball fans in the nation. A third of the NBA's website traffic comes from China.

With their huge Chinese fan base, NBA superstars Yao Ming of Houston Rockets and Yi Jianlian of Milwaukee Bucks are a driving force for the league's success here.

"China is becoming the most important market in NBA's strategy," said Chen. "Based on NBA China, we will also strengthen cooperation with local leagues such as the Chinese Basketball Association, to help support the further development of China's basketball industry," said Chen.

The NBA opened its Hong Kong office in 1992 and was the first US sports league to stage games on the mainland in 2004. "Cooperation with local leagues and companies isn't new, but NBA China is the starting point for more opportunities."