CBA League Commercial Performance Review White Paper

Foreword

Table of Contents

Executive Summary

Sports and Basketball Industry The CBA League is on the eve of its 25th season as the highest level of men's professional basketball in China. Looking back, the League has made a critical contribution to the game, CBA Data at a Glance but more broadly to the development of sports in China. We are confident our efforts to CBA Commercial leverage technology, upgrade the professional game and create a more complete game is Performance winning with fans. You can count on the League continuing to act as an engine of innovation. We trust that the League will deliver on its potential and are confident long-term, stable growth will translate into increased commercial success. Over the next five years, CBA 2.0 will see the League make basketball more exciting and relevant by providing a more intimate fan experience, shaping a brand image that resonates more strongly with younger audiences, establishing a complete commercial ecosystem, and implementing more reasonable club access.

Together with the 20 clubs that make up the CBA family, we will work with coaches, athletes, referees and staff from across the game. We will be bold in innovation and steadfast in execution as we continue to upgrade the professionalism of the game at every level, from league management to player. We hope to collaborate with partners from all aspects through this whole journey to create a top-notch league that is truly our own, and make the CBA the most influential sport league in China!

Yao Ming

Foreword

Table of Contents

Executive Summary

Sports and Basketball Industry Foreword 3 CBA Commercial Performance 31 CBA Data at a Glance The Role of CBA League (Beijing) Sports Co. Table of Contents 4 32 Ltd. CBA Commercial Executive Summary 5 Performance Broadcasters 33 Sports and Basketball Industry 6 Sponsors 35 Positive Growth 7 Clubs 38

Capital Investment 8 Players 41

Commercial Potential 10 Fans and Public 44 League Reforms 12

FIBA World Cup 14

CBA Data at a Glance 18

CBA: 24-seasons of evolution 19

Exciting League 21

Competitive Intensity 24

Talent 26

Increased Popular Appeal 29

Foreword

Table of Contents

Executive Summary

Sports and Basketball Industry

CBA Data at a Glance 1 2 3 CBA Commercial Performance

Sports and Basketball CBA Data at a Glance CBA Commercial Industry Performance

Driven by the government’s financial The CBA League has been evolving The CBA generates not only support, policy introduction, and across 24 seasons. commercial revenue but value investment, China’s sports industry has shared with the five major Reforms to improve the competition grown rapidly. stakeholders responsible for the have entered a new, CBA 2.0 era that league’s success. League quality and commercial is intended to secure the long term performance have been increased, while success of the league through Broadcasters, sponsors, clubs, reforms to boost the professionalism and stronger youth development and players, and fans. fairness of the league have met with standardized contracts. These stakeholders share a common remarkable success. The results of these reforms are interest in the development of a Basketball has become a popular sport already evident in a league that is sustainable and healthy CBA league. with a huge fan base. more balanced, unpredictable and exciting to fans. Healthy growth has attracted interest from investors with the CBA league seen as one Engaging fans through traditional, of the top sporting properties in China. digital and social media is further increasing the influence and A revitalized youth system and the commercial performance of the opportunity to host the 2019 FIBA World league. Cup are expected to further stimulate basketball and wider interest in sports..

Foreword

Table of Contents

Executive Summary

Sports and Basketball Industry

Set for continued, robust growth CBA Data at a Glance Boosted by increasing government spending, China’s sports industries are expected to be worth 5 trillion RMB by 2025. CBA Commercial Performance

Booming commercial appeal

League and sporting event sponsorship has become a crucial vehicle for corporates to boost brand awareness.

Basketball the standout performer

With a huge fans base, star players, and a strong, professional league, basketball is set to remain one of the most commercially value sporting IPs.

Increased professionalism through enhanced governance

Under the leadership of the State General Administration of Sports, and President Yao Ming the CBA is delivering on reforms to boost talent development, infrastructure and commercial performance

FIBA Basketball World Cup

China has upgraded its basketball infrastructure as part of preparations to host the 2019 FIBA Basketball World Cup. With 32 national teams competing across 8 cities the event is set to further boost the sport’s profile.

Foreword Continued Government spending on culture, sports & media and entertainment is support Table of Contents

Executive Summary Consumer spending on sports has been increasing by 60% in 5 years, backed by increased government efforts to grow sports and provide more facilities for Sports and Basketball people to exercise China’s sports industry is expected to worth Industry 5 trillion RMB by the end of 2025 (Unit: Billion RMB) (Unit: RMB) Positive Growth • In 2018, the state’s expenditure on national 400 2,500 culture, sports & media and entertainment Capital Investment 2,226 2,086 exceeded 350 billion RMB. The government’s Commercial Potential 1,915 financial support is providing a foundation for the 350 1,723 2,000 vigorous development of the sports industry League Reforms 1,536 1,398 • The number of sports industry GDP presentation FIBA World Cup 300 339 352 1,500 gap between China (1.0%) and developed countries 269 308 316 such as US (3.0%) and Japan (2.5%) is decreasing. CBA Data at a Glance 254 The guidance issued by the State Council and the 250 1,000 State General Administration of Sport indicates that CBA Commercial 2013 2014 2015 2016 2017 2018E the sport industry’s total value is expected to reach Performance State’s Fiscal Expenditure on Culture, Sports & Media (Left) 3 trillion RMB by 2020 and 5 trillion RMB by 2025. The increasing Chinese consumption on Chinese Consumption on Culture, Education & Entertainment Per Person (Right) culture, education, entertainment and sports becomes a main driver of the development Total Industry Value of Chinese Sports Industry (2013-2025F) (Unit: Trillion RMB)

6.0 5.0 5.0 4.0 3.0 3.0 2.2 2.4 1.7 1.9 2.0 1.1 1.4 1.0 0.0 2013 2014 2015 2016 2017 2018E 2020F 2025F

Sources: National Bureau of Statistics, General Administration of Sport; Deloitte interview, research and analysis

After reaching record levels of investment in 2015-16, the industry has become more Foreword rational and focused on developing prime properties and securing value Table of Contents

Executive Summary Overview of Domestic Sports Industry Average Value of Sports Investment Investment (2015-2018) (2015-2018) Sporting assets are still popular Sports and Basketball (Unit: Number of investments) Unit: Million RMB/project with Chinese investors Industry Positive Growth • Investments peaked in 2016, when a 300 140.0 123.0 278 surge in projects saw an annual growth Capital Investment 248 rate of 84% Commercial Potential 120.0 • From 2017 onwards capital investment League Reforms 214 has become more focused on quality 100.0 FIBA World Cup 200 75.0 • In 2018, investment remained rational, 67.0 however the business environment for CBA Data at a Glance 80.0 sports remains highly positive and the 132 industry is expecting to see investments CBA Commercial 60.0 climb again with a continued focus on 37.0 Performance 100 prime assets 40.0

20.0

0 0.0 2015 2016 2017 2018 2015 2016 2017 2018

The number of domestic sport Strong focus on prime IP investments reduced year by year since 2016, with aggregated annual growth Compared to 2017, the average value of rate of -31% single investments has increased by 85% In 2018, the average value of single project reached 123 million RMB

Sources: IT JUZI; Deloitte interview, research and analysis

Foreword Sponsoring sporting events has become popular with companies looking to raise brand awareness Table of Contents

Executive Summary The development of Chinese Top Leagues’ Sponsors Sports and Basketball Industry The quantity and quality of Positive Growth Sponsorship value CAGR in sponsors, and the value of the last 14 years Capital Investment sponsorship to China’s top division has grown strongly Commercial Potential Top Leagues in China >30% Sponsorship categories have League Reforms become more diversified FIBA World Cup • The sports industry attracted only a small CBA Data at a Glance number of sponsors 14 years ago CBA Commercial • In 2019 the number of industries Performance involved in sports sponsorship reached 11. Sponsor’s Industry • Professional football and basketball are the most premier sporting properties, taking up to 80% of the Chinese sports sponsorship market

2005 2012 2019

Sporting E-commerce Consumer Logistics Mechanical Automobile Industry goods platform Electronics Transportation Manufacturing categories of sponsors Food & Financial Energy & Internet Fashion Pharm Beverage Services Chemical Technology

Sources: Public Sources, CBA Ltd.; Deloitte interviews, research and analysis

A thriving league, increased international IP and a popular national team have Foreword increased sponsor interest in basketball over the past ten years Table of Contents

Executive Summary 10+ years 5+ years Last 5 ago ago years Sports and Basketball Industry Positive Growth Capital Investment Commercial Potential League Reforms FIBA World Cup

CBA Data at a Glance

CBA Commercial Performance

Sources: Deloitte interview, research and analysis

Foreword A huge fan base boosted by an increased number of star players has raised the league’s commercial potential Table of Contents

Executive Summary

Sports and Basketball 01 Fan Base 02 Star Players Industry Positive Growth Yi Jianlian Capital Investment Number of Weibo followers for CBA and NBA teams Commercial Potential 100 million League Reforms • 4× CBA Domestic MVP • 3× CBA FMVP FIBA World Cup • 5× CBA championships • 2× MVP FIBA Asia Monthly active users . HUPU, one of China’s most popular CBA Data at a Glance Championship basketball BBS platforms • 6th pick 2006 NBA draft CBA Commercial • Weibo followers 14.49 million Performance 55 million

Tencent Sports, one of the major media rights owners of basketball leagues, covers

Guo Ailun 482 million

• 5× CBA All-Star • 1× CBA championship 143 million 133 million • 1× FIBA World Youth Championship - Top Scorer • 1× Asian Youth Basketball Championship MVP • Weibo followers 3.08 million

Independent Live steaming Viewership users users peak1

Notes：1. Game seven of the NBA final in the 2015-2016 Season Source: Sina Weibo, General Administration of Sport, CBA Ltd.; Deloitte interviews, research and analysis

Efforts to improve league professionalism commercialization, talent and infrastructure Foreword are transforming the game Table of Contents

Executive Summary

Sports and Basketball Industry 1 2 3 4 Positive Growth Capital Investment Commercial Potential Higher Quality Commercial Performance Larger Talent Pool Improved Infrastructure League Reforms FIBA World Cup • Improvements in the • A 5-level sponsorship • The academy system has • “Club Guide for Large number of matches, youth structure now drives the been revitalized Stadium Commercial CBA Data at a Glance development and team league’s commercial Development”, encourages − Signed strategic MoU balance have boosted the development large (10,000 capacity) with the Student Sports CBA Commercial popularity of the game venue − The number of sponsors Association of the Performance − The regular season has and value of sponsorship Ministry of Education − 8 stadiums have a increased to 46 rounds; has risen significantly, − Introduced the “Little capacity over 10,000 with playoffs now digital media partners Basketball” plan contested by 12 teams have also been added, enhancing commercial − Strengthened • Referee reports and value relationship between performance reviews have CUBA and CBA improved the − The overall revenue has reached the “billion era” professionalism and fairness • Team Red and Team Blue of game adjudication • Club profits are growing launched to accelerate elite player development − Since the 18-19 season, − The average distribution the replay center is used bonus to clubs increased − The two teams have to help referees with by 70%-80% in 17-18 developed several young talents for the national disputable calls season team • Standardized player − In the new season, contracts and career increased 9 inventory development support put in rights place

Sources: General Administration of Sport, CBA Ltd.; Deloitte interview, research and analysis

Foreword CBA 2.0 is set to change the league’s operating model and strengthen connection with fans Table of Contents

Executive Summary

Sports and Basketball Working with clubs to upgrade brand image1 Bringing in proven management to drive reform Industry

Positive Growth Club identities are set to become more distinctive Capital Investment with name changes that play on city characters Commercial Potential Beijing Fly Dragon Beijing Royal Fighters • On 24 May 2019, David Wang became the League Reforms first CEO of CBA Ltd. Shenzhen Leopard Shenzhen Aviators FIBA World Cup • Prior to joining the CBA, David worked as Senior VP and COO and Chief Marketing Tianjin Gold Lion Tianjin Pioneers CBA Data at a Glance officer for NBA China for over 10 years

CBA Commercial Shandong Jinxing Shandong Heroes • David led NBA China’s business in partnership, media rights, licensing, e- Performance games, marketing and data strategies, and youth development New club logos are more visually creative and thematic David Wang CEO of CBA League • In May 2019, 9 clubs (Beijing) Sports Co. Ltd. officially released their new logos, kicking off the “CBA 2.0 Branding The CEO’s mission will be to ensure strong, sustainable Upgrade Plan” development of the league, with a focus on:

• All teams will have new logos in time for the 2020/21 season

Brand Building Competition Fan Engagement Commercial Management Development

Notes: 1. Club names and logos until the 2018/19 season Sources: CBA Ltd.; Deloitte interview, research and analysis

In 2015 China won the rights to host the 2019 FIBA Basketball World Cup 32 top Foreword national teams will compete across 8 host cities Table of Contents

The progress of China’s applying the World Cup Executive Summary 1950 2010 2012 2014 2014.12 2015.8 2019.9 Sports and Basketball Industry

China qualified as Positive Growth First FIBA World Japan hosted the Turkey hosted China won the rights Spain hosted the one of the candidates FIBA World Cup to Championship held in 15th World the 16th World to host for 2019 Capital Investment first World Cup1 to host the 2019 take place in China Argentina Championship Championship World Cup World Cup Commercial Potential League Reforms

Qualified Teams 2019 FIBA World Cup Hosting Cities and Venues of 2019 FIBA World Cup FIBA World Cup CBA Data at a Glance

Asia & Wukesong Culture & CBA Commercial Oceania Sports Center Performance

Gymnasium of Youth Olympic Games Sport Park

Beijing Europe Wuhan Sports Center Shanghai Oriental Sports Center

Nanjing Americas Guangzhou Gymnasium Wuhan Shanghai Dongguan The 2019 World Basketball Center Cup will be the Dongguan first tournament Guangzhou Africa to expand from 24 to 32 teams Foshan International Sports & Foshan Shenzhen Culture Arena (Constructed in Shenzhen Bay Sports Center 2018) Notes: 1. The FIBA World Championship changed name to FIBA World Cup in 2012 Sources: National Bureau of Statistics, General Administration of Sport; Deloitte interview, research and analysis

Foreword As a world-class tournament the FIBA World Cup is expected to generate huge economic benefits Table of Contents

Executive Summary

Sports and Basketball Industry 2014 FIBA World Cup generated €265 million for Spain Positive Growth Capital Investment Commercial Potential League Reforms 2014 World Cup was hosted by 6 cities across Spain FIBA World Cup

CBA Data at a Glance Bilbao

CBA Commercial Service sector Average International Spectators Performance Barcelona income attendance visitors €83 million rate 55,000 672,000 80%+ Madrid

Seville Granada

Additional value Advertising Canary Islands Consumers €212 million Event partners campaign Las Palmas covered 24 aggregated days 500+ 40 million

Sources: FIBA, Spanish Basketball Association; Deloitte interview, research and analysis

Chinese fans are excited at the prospect of hosting the FIBA World Cup Foreword

Table of Contents

Executive Summary Will you follow 2019 Basketball World Why would you like to follow 2019 Cup hosted in China? (N=3,051) Basketball World Cup? (N=2,497) Sports and Basketball Industry Over 80% of the fans Support for the Positive Growth indicate that they will Support the national team 76% Chinese national follow the World Cup team is the primary Capital Investment 18% driver of interest. Commercial Potential 96% of basketball fans Just love basketball 71% and 30% of non- League Reforms basketball fans intend 71% of fans said they would follow the world to follow the games CBA star players 42% FIBA World Cup cup because they “Just love basketball” 82% International star players 36% CBA Data at a Glance CBA Commercial Hosted locally 31% Performance Yes No

How do you think hosting the World Cup Fans reckon that How do you feel about the Chinese Over 80% of fans are will affect domestic basketball? (N=3,051) hosting international national team’s chances? (N=2,497) tournament will optimistic about the enhance the Chinese prospects of the basketball in multiple Chinese national Enhance local players 67% aspects Optimistic 43% team

Promote league With stronger 60% 67% of the fans agreed competitiveness that the tournament will Slightly optimistic 39% performances from improve local players’ Chinese players and Increase the fan base 53% performance positive national team Neutral 14% results, the majority of Attract more foreign talent 27% fans are looking forward Slightly pessimistic 2% to seeing China play at Improve infrastructure 26% the world cup

Boost youth development 18% Pessimistic 1%

Sources: Fan survey; Deloitte interview, research and analysis

Foreword Hosting the FIBA World Cup has provided an additional catalyst for the development of basketball in China Table of Contents

Executive Summary

Sports and Basketball Infrastructure Industry Public Interest Investment Positive Growth Capital Investment New stadiums have been built ahead of the World Cup The world cup has become a “hot topic” Commercial Potential Baidu Searching Index “World Cup”1 League Reforms • World-class arena which can be China wins hosting FIBA World Cup used for sports, entertainment and 1 right events, with a size of 38,900m2； 1 CBA Data at a Glance 15,000 capacity; 56 VIP rooms; Team Red & Team 2 Foshan 2,300 parking spaces 2 3 Blue CBA Commercial International Sports Yang Chaoyue, FIBA Performance & Culture Arena FIBA 1 4 7 10 13 16 19 3 World Cup draw World Cup China 2019

Team • The national team is divided into • Many local brands have become sponsors or partners Red Team Red and Team Blue to of the 2019 World Cup increasing the commercial Compete prepare for the World Cup. value of the event Outstanding young players such as Enhance Abudushalamu, Wu Qian have Team helped the national team re-claim Blue gold at the Asian Games after an 8 year drought

Chinese players have the opportunity to go head-to-head with top More Chinese companies focus on basketball events for international players, improving the league’s quality sponsorship, generating additional value

Players’ Performance Commercial Value Improvement Generation

Sources: Baidu Searching Index; Deloitte interview, research and analysis

Foreword

Table of Contents

Executive Summary

Sports and Basketball Industry

CBA at a Glance Growing Viewership 24-season evolution CBA Commercial Cumulative viewership reached a record 24 The league has had a nation-wide impact, with Performance 1.079billion during the 2018-19 season. reforms improving the quality, fairness and commercial success of the league.

Talent

The talent pool of the CBA League is Exciting League complemented by fast growing youth pipelines. A continuous infusion of foreign Scoring records continue to tumble with average rounds talent, playing in their prime is helping to per game, field goal percentage on the rise. The quality raise league quality and excitement. of offensive and counter attacking play has increased along with technical and tactical sophistication.

Competitive Intensity

Narrower victory margins and closer win percentages among tier clubs showcases the league’s increased tension and spectacle,

Foreword The CBA is a nation-wide phenomenon

Table of Contents

Executive Summary 31 teams drawn from 21 regions and 28 cities have participated Sports and Basketball in the CBA across its 24 year history. The 2019-20 season will Industry see 20 teams compete Total number 6,761 CBA Data at a Glance of games1

CBA: 24-seasons of Regular Season 6,140 evolution 621 Exciting League Changchun Playoff Competitive Intensity Urumqi Shenyang Talent Cumulative Beijing score 1,390,500 Increased Popular Appeal Tianjin Baoding CBA Commercial Taiyuan Qingdao Cumulative Performance Jinan 543,366 rebounds Xi’an Zhengzhou Nanjing Suzhou Changzhou Shanghai Ccumulative Chengdu Wuhan assists 206,579 Hangzhou Chongqing Zhuji Historical CBA Team Ningbo location Nanchang 4 or more Jinjiang 7 different teams have won the championship2: 3 Honghe Guangzhou 2 Dongguan Foshan Shenzhen 1 No team Current CBA team home city Past CBA team city

信息来源： Notes：1. Relegation is not included 2. Club logos by the end of 2018-19 season Sources: Public information; Deloitte interview, research and analysis

After several rounds of reform, league quality has been significantly improved, with Foreword management becoming more market and fan-oriented Table of Contents

Executive Summary

Sports and Basketball 95-96 Season 05-06 Season 17-18 Season Industry CBA Data at a Glance

CBA: 24-seasons of Chinese Men's Chinese Men's Basketball "CBA 2.0 era“ evolution Basketball League Professional League (CBA) Improved professionalism and Overall transformation of brand image Exciting League Primarily military teams participating attracted more clubs Adopt new tournament systems Promotion and relegation system Competitive Intensity Adopt admission system Talent Increased Popular Appeal Competition reform elements CBA Commercial Number of Performance 10+ teams Expanded to 20 clubs Teams

Regular Double round-robin system; North and South divisions in 3 seasons from 04-051 4 groups/4 cycles season rule

Play-off Top 8 teams enter into playoffs Playoffs gradually expanded to 12 teams system

Entry Adopted promotion and relegation system Switches to admission system requirement

Foreign Selected foreign player pool 2-3 foreign player quota2 Free choice of 2+1 foreign players3 player policy lower ranked clubs given selection priority

Player No standard contract Standard contract formulation contracts

Notes: 1. 06-07 season and 07-08 season suspended North-South system 2. Military teams cannot choose foreign player 3. Lower ranked teams in regular season allowed to choose an additional Asian foreign player Sources: Deloitte interview, research and analysis

Foreword Starting from the 14-15 season, the league has developed a “striking wave“ pattern with faster paced games and higher scoring rates increasing the thrill of each game Table of Contents

Executive Summary Regular season average score per game and number of rounds Sports and Basketball (2006-2019) Industry

CBA Data at a Glance 06-07 season to 18-19 season

CBA: 24-seasons of evolution Average score per team Exciting League Since 14-15 season average scores and field goal percentage have 110 increased significantly Competitive Intensity Talent 2018-2019 Increased Popular Appeal 105 Stat Summary CBA Commercial Average Performance 100 score per 107.3 Pts game Average 93.8 number of 95 rounds rounds Average rounds Score obtained in Score per single team every 100 rounds 114.4 Pts 95 115 100 rounds

93 110 92

90 105

Sources: CBA Ltd.; Deloitte interview, research and analysis

Gameplay has come to be typified by fast break, give-and-go tactics that increase the Foreword drama and spectacle of each game Table of Contents

Executive Summary Average three-point field goal attempts and % in overall attempts in regular seasons (2006-2019) Sports and Basketball Industry

06-07 season to 18-19 season CBA Data at a Glance

Average number of three-point field goal attempts per team CBA: 24-seasons of evolution

The Golden State Warriors NBA championship win in 14-15 season, Exciting League 30 popularized three-point field goal strategies. Competitive Intensity Talent Record three-point field goal in 18-19 season Increased Popular Appeal 25 CBA Commercial Three-point field 9,591 goal attempts times Performance

Total score of 28,773 three-point goal Pts 20 Three-pointer % of overall attempts(%) Three-point shot 35.7% percentage 36%

34%

32%

30%

28%

Sources: CBA Ltd.; Deloitte interview, research and analysis

Foreword A referee upgrade-downgrade assessment system has improved the fairness of matches and increased the unpredictability of results Table of Contents

Executive Summary

Sports and Basketball Industry 06-07 season to 18-19 season CBA Data at a Glance Away team win % in regular season and playoffs CBA: 24-seasons of evolution

Exciting League Winning% in regular season Winning% in playoff Competitive Intensity Talent The 2018-2019 season, saw a new record in away team win % during the play-offs Balanced foul calls Increased Popular Appeal 18-19 season CBA Commercial 50% Number of Performance fouls per 23.5 times game

Number of 24.5 times free throws per game

Road team winning rate 40.0%

10%

Sources: CBA Ltd.; Deloitte interview, research and analysis

Narrower victory margins and closer win rates showcase a tighter, more competitive Foreword league Table of Contents

Executive Summary Win percentage distribution (2005-2019) Sports and Basketball Industry 05-06 season to 18-19 season CBA Data at a Glance 100% Closer win percentages among top tier CBA: 24-seasons of evolution clubs show how the competition has become more dramatic for fans Exciting League Competitive Intensity Top 4 Teams Talent • The win percentage of the 12th placed 75% playoff club climbed to 50% in the 18- Increased Popular Appeal 19 season, the highest level in 15 years CBA Commercial Teams Performance Ranked 4 to 8 Competition for playoff qualification has become increasingly intense Rank • In the 18-19 season the 13th placed 8 to 12 50% team was only one winning game behind the 9th

Rank 13 and below Win % of 4th placed team 25% Minimum requirement for obtaining home-court advantage in the playoffs Win % of 8th placed team Minimum requirement to qualify for pre-season playoffs in 2018-19 Win % of 12th placed team Minimum requirement to join new season playoffs in 2018-19

Sources: Beitai; Deloitte interview, research and analysis

Foreword Since the 2011-2012 season the number of play-off rounds extending beyond Game 5 has increased, The 2017-2018 season saw the CBA’s first 7 game round Table of Contents

Executive Summary Play-off series results1 (2005-2019) Sports and Basketball Unit: Number of teams Industry Since the 2015-2016 season, 10 final rounds have gone beyond Game 5 CBA Data at a Glance The increase in “win-or-die” games has heightened excitement and fan engagement CBA: 24-seasons of evolution Results 2 8 Exciting League

Competitive Intensity Prior to 2011-2012 season Post 2011-2012 season Talent Increased Popular Appeal CBA Commercial Performance Game 6 Game 4 Playoff finals reach new level of

A leading team reached an impasse in the final drama A team with losing point finally turned the tables. round but ultimately win. • 80% of games were won by the 17-18 season 13-14 season 18-19 season 17-18 season home team Quarterfinal Semifinal Quarterfinal Semifinal • Shenzhen became the first team to Zhe 107 : 98 Shen Guang 102 : 110 Bei Shen 118 : 107 Bei Zhe 105 : 95 Shan win a series after trailing 2-0 start in Jiang Final score Zhen Dong Final score Jing Zhen Final score Jing Jiang Final score Dong 18-19 season 12-13 season 11-12 season 16-17 season 06-07 season • Shenzhen became the first team to Quarterfinal Quarterfinal Quarterfinal Quarterfinal complete two turnarounds Xin 115 : 110 Liao Xin 109 : 88 Dong Shang 95 : 102 Shen Liao 102 : 88 Fu • Zhejiang became the first team to go Jiang Final score Ning Jiang Final score Guan Hai Final score Zhen Ning Final score Jian to Game 5 or Game 7 during a single playoff series 11-12 season 07-08 season Semifinal Quarterfinal Bei 110 : 98 Shan Jiang 113 : 108 Fu Jing Final score xi Su Final score Jian

Notes: 1. Not include 8 out of 12 series in 17-18 season and 8 out of 12 series in 18-19 season. Sources: CBA Ltd.; Deloitte interview, research and analysis

The CBA has become an attractive league for top international players at their peak Foreword

Table of Contents

Executive Summary Between 2005 and 2019 the CBA has attracted 370 talents from overseas Sports and Basketball Industry 05-06 season to 18-19 season CBA Data at a Glance International talent are recruited at prime playing age CBA: 24-seasons of evolution

Number of foreign players per season (left axis) Exciting League • The age profile for peak performance Competitive Intensity Cumulative number of foreign players (right axis) in basketball is between 28-32 Talent 80 400 • The average age for foreign players during the 18-19 season was is 29 Increased Popular Appeal • 70% of foreign players were at peak CBA Commercial playing age during seasons 17-18 Performance and 18-19

40 200

0 0 The number of new foreign players that can be registered per season is subject to league rules, generally 20-30 foreign players join the league every year. Sources: Beitai; Deloitte interview, research and analysis

Foreword The impact of international recruits on league quality and competitiveness is clear from the stats Table of Contents

Executive Summary Points distribution for foreign players (2005-2019) Sports and Basketball The quality of foreign recruits continues to Industry rise as the league becomes more attractive 05-06 season to 18-19 season CBA Data at a Glance In 18-19 season, the average points for foreign players reached a record 24.2 CBA: 24-seasons of evolution Lowest points of foreign players Exciting League Rebound and assists stats highlight increased Highest points of foreign players Competitive Intensity talent levels Average points of foreign players Talent 12 Percentage of foreign players'points Increased Popular Appeal 8

CBA Commercial 4 Performance 40 80% 0 Rebounds per game (foreign forward or center) Assists per game (foreign guard players)

30 60% The influence of foreign players has boosted, not crowded out local talent • Foreign player scoring percentages have remained stable 20 40% • In the 18-19 season 46.5% of scores were by foreign players. This is the second lowest level since the 2012-13 season

10 20%

0 0%

Sources: Beitai; Deloitte interview, research and analysis

Local stars are getting younger with the league’s pro-talent pipeline starting to Foreword produce and opportunities for younger players continuing to open up Table of Contents

Executive Summary

Performance analysis of individual All-Star players1 18-19 season Sports and Basketball Industry 10-11 season to 18-19 season CBA Data at a Glance Local players are getting younger 10-11 Season as the league’s academy system CBA: 24-seasons of evolution starts to deliver 40 Exciting League Guo Ailun Competitive Intensity • The league’s academy/training Updated 35 system ensures the future Talent development of Chinese basketball Increased Popular Appeal 30 CBA Commercial Dingyan Yuhang Performance 25 CBA local All-Star players’ Average Age Wang Zhelin 20 40

30 15 20 Hu Jinqiu 10 10 • In 18-19 season the average age of 5 local all stars fell to 25, the youngest level since 06-07 season Abudushalamu 0

Notes: 1. Representative players are selected with age below 26 in 18-19 season. Performance data of Wang Zhelin is not complete due to his 80% absence of games in 15-16 season. Sources: CBA Ltd.; Deloitte interview, research and analysis

Foreword Viewership of the CBA reached a record 1.079 billion for the 2018-19 season

Table of Contents

Executive Summary Increased coverage Longer broadcast times Robust viewership growth Sports and Basketball Unit: number of games broadcast Unit: thousand hours Unit: billion Industry

CBA Data at a Glance Live Recording Replay 8 1.2 CBA: 24-seasons of evolution 4,500 7 Exciting League 1.0 4,000 Competitive Intensity 6 Talent 3,500 0.8 5 Increased Popular Appeal 3,000 CBA Commercial Performance 2,500 4 0.6 2,000 3 0.4 1,500 2 1,000 0.2 1 500

0 0 0.0 2016-17 2017-18 2018-19 2016-17 2017-18 2018-19 2016-17 2017-18 2018-19

Increased coverage has created a broader platform for sponsors to gain exposure

The 4,151 games broadcast on CCTV and local TV stations equates to 6,809 hours of basketball

Notes: 1. Including data for CCTV and local TV stations, but not for new media Sources: CBA Ltd., CSM; Deloitte interview, research and analysis

The CBA has expanded league promotion efforts beyond traditional media channels. Foreword More than 50% fans follow CBA through the league's official Weibo account Table of Contents

Executive Summary Primary channels to follow CBA Overview of CBA official social media accounts (May 2019) Sports and Basketball Industry

PC internet 75% CBA Data at a Glance Cumulative Social media 70% Number of CBA: 24-seasons of evolution number of posts Mobile platform 61% users/fans Exciting League

Television 61% Competitive Intensity Talent Newspaper & Magazine 33% 135,526 1,646 Increased Popular Appeal Relatives & Friends 17% Official APP CBA Commercial Radio 10% Performance 56,635 794 Primary social media platforms used by CBA fans Official WeChat

League's official Weibo 56% 2,130,128 5,089 Official Weibo League's official WeChat 49%

League's official APP 27% 360 Clubs' Weibo 30%

Clubs' WeChat 29% Unit 140 (‘000) 110 Star players' Weibo 25%

League's official Douyin 22% Number of Comments Number of Shares Number of Likes

Sources: Fan Survey; Deloitte interview, research and analysis

Foreword The development of the CBA creates value not only for the league, but the five major stakeholders that directly contribute to its development Table of Contents

Executive Summary

Sports and Basketball Industry

CBA Data at a Glance

CBA Commercial Performance CBA League CBA League (Beijing) Sports Co. Ltd. organizes and manages the league. Broadcasters Broadcasters Serve as media intermediaries expand the reach of the league. Sponsors Serve as the marketing channel for the league creating brand Fans exposure and value. Sponsors Clubs Clubs participate in the league, their performance defines how it is perceived in terms of quality and attractiveness. Players Players are the core assets of the league, driving the intensity of matches and raising awareness with fans and public. Fans and Public Players Clubs Fans and public are the ultimate consumers of basketball and the foundations of the league’s economy.

Foreword

Table of Contents

Executive Summary

CBA League (Beijing) Sports Co. Ltd. organizes and manages the league, promotes and distributes commercial Sports and Basketball rights, while ensuring effective operations. The Chinese Basketball Association (CBA), will continue to supervise Industry and provide guidance in order to developed and, economic and social value will be achieved. In 2018/19 season, CBA company generated over RMB 1billion revenue in total with 21% growth. CBA Data at a Glance

CBA Commercial Performance Oct 2016 Jun 2017 The Role of CBA League (Beijing) Sports Co. Ltd. CBA Company official CBA transfers equity to Broadcasters established CBA Company Sponsors

Before After Before After Clubs Players From 2005, the CBA granted commercial League management and administration effectively The CBA League becomes an autonomous Fans and Public development rights to Infront Sports & Media. seperated with the establishment of CBA League business entity with the CBA formally (Beijing) Sports Co. transferring all equity holdings.

Transfer 30% 1 CBA CBA 20 Clubs holdings 20 Clubs

Holding 30% Each holding 3.5% Controlling Commercial CBA1 interest, each development rights CBA Ltd. granted full holding 5% league organizational and commercial development rights. Infront Sports & CBA Company CBA Company Media China

Notes: 1. The holding party is the China Basketball Association's wholly-owned subsidiary (Beijing Zhonglan Juren Advertising Centre) Sources: CBA, State Administration for Market Regulation; Deloitte interview, research and analysis

Foreword The league’s success creates a virtuous circle that benefits all stakeholders

Table of Contents

Executive Summary

Sports and Basketball Industry Broadcasters both drive and benefit from increasing viewership. CBA Data at a Glance

CBA Commercial Performance The Role of CBA League Benefits to broadcasters Benefits through broadcasters (Beijing) Sports Co. Ltd. Broadcasters Upstream industry development Sponsors Increased value of advertising Increased investment in broadcasting-related industries that improve Clubs Bigger audiences and greater reach increases advertising revenues. viewing experience and broadcast quality. Players

Fans and Public Employment creation Demand for premium content Increased demand for new, value-add jobs across multiple Demand for premium content boosts subscription revenues. industries.

Revenue growth via rights distribution Increased tax contribution The value appreciation of the league will distribute broadcast rights Increased tax contributions via traditional and digital media. to various platforms and obtain a larger price difference.

Promotion of sports culture Co-branding and content collaboration opportunities Viewers are encouraged to take up sport and participate in sports Program synergies and product placement. further expanding basketball’s future fan base.

Sources: Deloitte interview, research and analysis

Traditional and digital media are complementary, with growing international influence Foreword

Table of Contents

Executive Summary Broadcaster views on the league Sports and Basketball Industry

CBA Data at a Glance Traditional media Digital media CBA Commercial Performance The Role of CBA League (Beijing) Sports Co. Ltd. 18 local TV stations Broadcasters Sponsors Clubs Players Fans and Public "...The broadcast of CBA League has always been high priority events. In recent years, with increasing CCTV viewership, broadcast value has been highly appreciated. Meanwhile, various league reforms have promoted mutual cooperation. ...“ --- CCTV-5

“…The CBA League is one of the top sports events in China. The establishment of CBA company, and the event of Yao Ming becoming the Chairman of the Basketball Association and Chairman of the CBA have all promoted the cooperation between new media and the league. In recent years, the ratings of CBA new media have also increased significantly.…” --- Tencent Sports

Sources: CBA; Deloitte interview, research and analysis

Foreword The league’s success creates a virtuous circle that benefits all stakeholders

Table of Contents

Executive Summary

Sports and Basketball Industry Sponsors support the league’s commercialization and benefit through increased exposure. CBA Data at a Glance

CBA Commercial Performance The Role of CBA League Benefits to sponsors Benefits through sponsors (Beijing) Sports Co. Ltd. Broadcasters Stimulating economic growth Sponsors Increased brand awareness Increased profits enables investment and consumption in upstream Clubs Targeted access to an expanding fan base. industries. Players

Fans and Public Employment creation Sales growth As sales volume increase enterprises will increase employment to League association and player endorsements boost product sales. meet demand.

Brand premium Increased tax contributions Opportunities to tailor brand perception to different audiences Higher profits lead to an increase in government tax revenue. generates greater brand value.

Attracting capital investment in sports industry Driving trial and consideration Commercial success helps to fuel larger sponsorship deals and Exposure through the league can open up new target consumers. investment into sports.

Sources: Deloitte interview, research and analysis

Sponsorship opportunities are increasing, and paying dividends Foreword

Table of Contents

Executive Summary Increased commercial rights mean increasing opportunity Did you pay attention to sponsor brands in sports events, sports stars or other Sports and Basketball sports activities? (N=3,051) Nearly 90% of fans Industry pay attention to Authorized title and logo CBA Data at a Glance 38% sponsor brands in • Officially authorized title of the league and category 32% sports events exclusivity rights CBA Commercial • Production and sale of CBA league and sponsor co- Performance branding products 18% Brand 12% The Role of CBA League Rights Complementary tickets (Beijing) Sports Co. Ltd. Merchandising Broadcasters Sponsors

Arena marketing activities Clubs • Advertisements, including LED displays + cheer sticks Players • Half-time and off-site promotion activities Fans and Public What is your view of sponsor brands Official products and owned media 74% of fans reacted appearing in sports events or sports Exposure Official brochures, owned media platform, press positively to brand • activities? (N=3,051) rights interview background board, etc. exposure.

2% 24% Endorsements • Personal right of groups of three or more players • CBA League licensing photographs and videos 74% Player Advertising campaigns rights • Players shooting ads and attending marketing campaigns in their home cities Supported Netural Opposed

Sources: Fan Survey; Deloitte interview, research and analysis

Foreword Sponsors recognize both the returns and future benefits of association with the CBA

Table of Contents

Executive Summary CBA league sponsors 2018-2019 season Sports and Basketball Industry Main Sponsor CBA Data at a Glance “…In recent years, league reform has driven sponsors to gain more exposure and better publicity. At the same time, the league has actively CBA Commercial introduced the competition theme, which has attracted more interest of fans and enhanced the brand images of companies…” --- A Sponsor Performance Strategic Partner The Role of CBA League (Beijing) Sports Co. Ltd. Broadcasters “…A series of reforms in CBA League promoted the improvement of Cooperative Partners professionalism, the emergence of young players and the enhancement of Sponsors performance of Chinese professional basketball, established a more positive brand image for TCL, and consolidated the cooperation between two sides…” Clubs ---TCL Players Official Sponsors Fans and Public

“…The broadcast time of CBA events is friendly. Most fans belong to the Official Suppliers sports-related population, showing a younger trend. The fans have a high sense of belonging to the home team and have a high degree of participation, demonstrating unique commercial value for the company.…” --- A Sponsor

Media Cooperative Partners

“…CBA league shows an excellent development trend. The establishment of an independent commercial company with the separation of CBA league Official Timer management and administration, conforms to the commercial laws of the market and plays a positive role in promoting CBA and sponsor brands…” --- TAG Heuer

Sources: CBA; Deloitte interview, research and analysis

The league’s success creates a virtuous circle that benefits all stakeholders Foreword

Table of Contents

Executive Summary

Sports and Basketball The value of the CBA league and its member clubs are interlinked. Success for one, creates success for all. Industry CBA Data at a Glance

CBA Commercial Performance Benefits to the clubs Benefits through the clubs The Role of CBA League (Beijing) Sports Co. Ltd. Broadcasters Robust funding Stimulating infrastructure construction Sponsors As shareholders, clubs receive annual funding from the league, Servicing a larger fan base means the construction and maintenance Clubs which grows as the commercial value of the league increases. of larger, more modern arenas and training facilities. Players Fans and Public Increased sponsorship revenue Youth development Increased clubs revenue stimulates investment academy facilities Increased number and sponsor quality means larger deals. and youth engagement to develop the next generation of talent.

Increased ticket revenues Employment opportunities and added tax value A more enthusiastic and engaged fan base means higher gate Successful clubs generate employment and tax. receipts.

New revenue opportunities ‘Sports + e-sports’ ecosystems

League success opens up commercial opportunities in areas such as The China Basketball Club E-sports League promotes the integration merchandizing for clubs. of e-sports with traditional sports.

Sources: Deloitte interview, research and analysis

Foreword Enhancing the fan experience creates economic opportunities for both clubs and host cities Table of Contents

Executive Summary

Sports and Basketball Arenas attract visitors and boost overall in-bound tourism Renovating and upgrading arenas to enhance fan experience Industry

CBA Data at a Glance Liaoning Hengrun Flying Leopard Basketball Club1

CBA Commercial In March 2018, Liaoning Hengrun Flying Leopard Basketball Club began to use Liaoning Gymnasium. Performance Broad and Sichuan Gymnasium Narrow Alley The Role of CBA League Sichuan Jinqiang Blue Whales (Beijing) Sports Co. Ltd. Sichuan Club is located in the centre of Temple of Provincial Chengdu. It is only 5 Broadcasters Marquis Wu Government kilometers from popular tourist Sichuan Blue Whales Basketball Club Sponsors sights such as the Broad and In August 2018, the construction of Sichuan Jinqiang Sichuan Narrow Alley, and Temple of International Event Center, which was invested by Zhou Clubs Gymnasium Marquis Wu. Shiqiang, Chairman of Sichuan Basketball Association and Players Chairman of Jinqiang Group, started in Wenjiang, Chengdu; The arena uses the gymnasium of NBA's Golden State Warriors as Fans and Public reference, and will become the main arena for Sichuan Men's Basketball Team in the future. Guangzhou Long-Lions Basketball Club

In April 2019, Long-Lions Club officially made Tianhe Stadium their home became the only CBA club that directly operates the Tianhe home stadium. Tianhe Stadium Guangzhou Gymnasium Tianhe Sports Center the home Provincial of the Long-Lions club is Government Haixin collocated in Guangzhou’s Jilin Northeast Tigers Basketball Club Island main stadium. Canton In 2019, Jilin Northeast Tigers Club invested about 15 million Tower yuan to build and renovate the Northeast Tigers Sports Center. The complex covers about 10,000 square meters, with six indoor basketball courts and ten professional badminton courts.

Note：1. Club Names by 2018-19 Season Sources: Deloitte interviews, research and analysis

Academy and youth teams strengthen talent pipelines Foreword

Table of Contents

Executive Summary

Sports and Basketball Industry 1 2 3 4 CBA Data at a Glance

Guangdong Shenzhen Aviators2 Zhejiang Guangsha Xinjiang Guanghui CBA Commercial Hongyuan1 Youth Youth Team Youth Team Youth Team Performance Team The Role of CBA League (Beijing) Sports Co. Ltd. Hongyuan became the first team in The team sends players to the Xinjiang Youth Training Team has China to establish a professional United States for special training, The club cooperates with Zhejiang become increasingly mature in Broadcasters youth system. The team relies on and cooperates with Shenzhen Provincial Sports Bureau to bring in recent years, with high-level scouting and basketball camps to Sports School to provide a pipeline high potential talent coaches and players, providing Sponsors recruit talent for it’s youth team talents for the top basketball teams Clubs Established: 2005 Established：1996 Established: 2003 Established: 2006 Players Training Base： Training Base： Training Base： Training Base： Fans and Public Establish Zhuji Junma Cooperates with Houjie Invested 300 million yuan to Built two training bases in the Basketball Training Base Shangfeng to run training build its own training base east of China camps Faculty： Faculty： Faculty： Faculty: Hired famous coaches such as Hired Li Chunjiang Hired Gao Shumin and Jiang Qu Shaobin, current head Zhang Yongjun, Ma Yuenan, Li Zhengxiu, the former head coach, introduced advanced Qun, Wang Jianjun and Al Gore, coach of the South Korean youth training methods based the godfather of basketball in national team on European basketball, to Australia Major Achievements： Major Achievements： cultivates the top guard talents Major Achievements： Cultivated top basketball Major Achievements： Won the CBA Club Reserve Cultivated top basketball Team championship in season players including Kelanbaike, Graduates include Du Feng, players including Gu Quan, Li 17-18, and U19 league Xirelijiang, Abudushalamu; Zhu Fangyu, Wang Shipeng, Muhao, He Xining, etc.; Won championship; Won Obtained championship of Chen Jianghua, Yi Jianlian, Liu National Youth Basketball championship for all youth National Youth Basketball Xiaoyu, etc. League Championship for three basketball matches hosted by League and National Basketball times (2009, 2012, 2016) Chinese Basketball Association Club Youth League in 2014

Notes：1. Club Names as of 2018-19 Season; 2. Previous name is Shenzhen Leopard Sources: CBA; Deloitte interview, research and analysis

Foreword The league’s success creates a virtuous circle that benefits all stakeholders

Table of Contents

Executive Summary

Sports and Basketball Industry Players are the core asset of the CBA league as well as one of the key factors determining the viewing quality. CBA Data at a Glance

CBA Commercial Performance The Role of CBA League Benefits to players Benefits through players (Beijing) Sports Co. Ltd. Broadcasters Inspiring the next generation and driving talent Investment Sponsors Increased salaries Player success attracts new talent into sports and investment to Clubs Training and game time drives players value and contract terms. youth development. Players

Fans and Public Commercial rights Building community culture Star players can command fees for image rights and brand Individual players can act as sporting and cultural role models endorsements.

Personal branding Stimulating consumer spending Media exposure allows players to develop their own following and Athletes drive product sales. personal branding.

Expanded economic impact Career opportunities post retirement Sports-related businesses (e.g.. Entertainment activities, personal Wealth, recognition and reputation opens up multiple career paths in brands, etc.) carried out by players increase accelerate the sports and business. development of sports industry

Sources: CBA; Deloitte interview, research and analysis

Standardizing contract and legal rights Foreword

Table of Contents

Executive Summary

Sports and Basketball 2018-19 season 2019-20 season 2020-21 season Industry

CBA Data at a Glance

Test Trial Implement CBA Commercial Performance Defining contract types Clarifying terms per contract types Carry out salary cap system The Role of CBA League Type A: Rookie contract Including contract age, length, The CBA will implement a salary cap (Beijing) Sports Co. Ltd. minimum salary, extension priority etc. system to limit total salary level at Type B: Protective contract Broadcasters each club, ensuring fair competition Providing guaranteed contract Type C: Regular contract and promoting the well-balanced Sponsors insurance for players development of the league. Type D: Maximum salary contract Clubs Insurance premium will be paid by Further enhancing contracts Type E: Veteran contract clubs and players, mitigating Players occupational to players and reducing In addition to salary cap terms, labor Transfer compensation operating risk to clubs. relations, bonuses, incentives, Fans and Public retirement guarantees, type D Players are eligible for transfer after Trial buyout and matching rules their contract expires, however the contracts, insurance and buyout terms buying club must compensate the Clubs can unilaterally buyout players’ will be further improved in the official selling club for training expenses contract for non-injury reasons. For standard player contract. based on the average annual salary Type B players, the selling clubs can under the new contract. exercise matching rights.

Purpose

1 2 3 4 Level playing field Sustainable development Promotion of youth training Player mobility, team balance

Sources: CBA; Deloitte interview, research and analysis

Foreword Players act as social role models, supporting charities and promoting the values of the league Table of Contents

Executive Summary

Sports and Basketball Industry CBA All-Star Weekend offers players the change to give back to fan communities while promoting the best of basketball culture. CBA Data at a Glance

CBA Commercial Performance 16-17 17-18 18-19 The Role of CBA League (Beijing) Sports Co. Ltd. Beijing Shenzhen Qingdao Broadcasters

Sponsors Star players sang the theme songs Dunk King + in Youth Basketball Offering rookies a chance to shine of CBA All-Star Weekend at the Match Clubs opening ceremony Players Zhai Xiaochuan, Abudushalamu, Hu In 2019, a junior game was arranged Jinqiu and Zhou Zhandong sang CBA Zhang Jianhao, the All-Star Dunk King, as part of the warm up for the CBA met with players from the NYBO Youth All-Star for the first time. Youth Fans and Public ctivities All-Star Theme Songs at the opening a ceremony of All-Star Game. Basketball Match of China Life players were given a platform to shine encouraging them: "The future with star players Tao Hanlin, Wu Qian

site belongs to you." and Shi Deshuai providing on-site

- guidance. On

Star players interact with fans All-Star Weekend Campus Event at Advocating marine protection during All-Star period HKCU (Shenzhen)

Star players Zhai Xiaochuan, Wang Star players Marbury, Dingyan Yuhang Nearly 100 teachers and students Zhelin and Fredette interacted with and Zhou Qi, met with fans, sharing participated in the three-point contest. animals at Qingdao Haichang Polar skills and promoting basketball culture Star players from the Shenzhen team, Ocean Park, sharing their opinions on among teenagers. Gu Quan, Meng Duo and Yu Dehao, marine protection, and advocating

attended the event. social participation for marine site activitiessite

- conservation. Off

Sources: CBA; Deloitte interview, research and analysis

The league’s success creates a virtuous circle that benefits all stakeholders Foreword

Table of Contents

Executive Summary

Sports and Basketball Fans as the ultimate consumers of basketball drive the league’s economy. Industry CBA Data at a Glance

CBA Commercial Performance Benefits to fans Benefits through fans The Role of CBA League (Beijing) Sports Co. Ltd. Broadcasters Emotional well-being Boosting consumption Sponsors Better arenas and better viewing experiences mean better service, Sales growth of different categories of consumer goods, such as Clubs engagement and fan satisfaction. beverages, electronics etc. Players Fans and Public Events to engage with idols Sports tourism

The league and clubs regularly hold online and offline events to offer Fans drive the development of local tourism and related service fans opportunities to interact with players. industries such as restaurants, hotels, transportation etc.

A sense of belonging Promoting fitness and sports culture

Following a team enhance a person’s sense of belonging and Active involvement in sports promotes fitness and a stronger connection to home cities. national sports culture.

A sense of community Improved public health and reduced medical expenses

Watching game with friends creates social bonds with fellow fans. Participation in support improves personal health and reduces the incidence of illnesses that put pressure on public health systems.

Sources: CBA; Deloitte interview, research and analysis

Foreword Fan engagement with the league has been strengthened through recent reforms

Table of Contents

Executive Summary Which keywords do you think best How have reforms improved the CBA Sports and Basketball matches the CBA league?（N=3,051） League?（N=2,404） Industry

CBA Data at a Glance Fans recognize the Fans believe that Firece 4.1 increased intensity brand awareness 4.0 continuous reforms CBA Commercial of CBA League. are translating into Professionlism 4.0 Performance Professional 3.9 a better league. The Role of CBA League Quality of clubs 3.9 (Beijing) Sports Co. Ltd. Fair 3.7 Intensity 3.9 Broadcasters Good viewing 3.7 Sponsors experience Fairness 3.9 Clubs Suspenseful 3.6 Suspence 3.7 Players

Fans and Public What keywords would you use to Are you optimistic about the future Nearly 90% of fans describe the CBA?（N=2,404） Fans are positive development of CBA League?（N=2,404） are optimistic about CBA brand about the image. development of Vigorous 58% Very optimistic 52% CBA League. Chinese 56% Optimistic 36% Professional 48% Neutral 11% Rapidly developed 42% A bit pessimistic 1% Active 42%

0% well-known 38% Pessimistic

Note：1. The full score is 5 points, and the final score is calculated by the weighted average of fan options. Sources: Fan Survey; Deloitte interview, research and analysis

The CBA has a positive impact on fitness and sports participation Foreword

Table of Contents

Executive Summary % of fans spending more than 6 hours Will you bring friends and family to per week playing basketball （N=2,930） exercise？（N=3,051） Sports and Basketball More than 30% of Nearly 80% of fans Industry CBA fans play 6+ engage in sports with 30% CBA Data at a Glance hours of basketball a 81% friends and family. week. CBA Commercial 15% Performance The Role of CBA League 0% (Beijing) Sports Co. Ltd.

19% Broadcasters Sponsors Clubs Yes No Players % of fans spending + 1 hour per day on Will you support your child to develop Fans and Public sports-related news or social media basketball as a hobby? （N=3,051） 90% of fans （N=2,543） Nearly 70% of fans encourage their 50% spend more than an 90% children to engage in hour every day on youth initiatives such sports-related media. as “Little Basketball”. 25%

10%

Yes No

Sources: Fan Survey; Deloitte interview, research and analysis

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