Oct 18, 2022

The NBA's Secret Weapon for Winning Fans in Japan: Rakuten

Vlad Savov, Bloomberg News

SAITAMA, JAPAN - SEPTEMBER 30: Fans watch as Rui Hachimura #8 of the Washington Wizards shoots during the Golden State Warriors v Washington Wizards - NBA Japan Games at the Saitama Super Arena on September 30, 2022 in Saitama, Japan. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement. (Photo by Takashi Aoyama/Getty Images) Photographer: Takashi Aoyama/Getty Images , Photographer: Takashi Aoyama/Getty Images

(Bloomberg) -- On a recent Sunday afternoon, a basketball fan in a Cleveland Cavaliers jersey took his seat for a preseason NBA game in a sold-out arena. This would have been unremarkable if not for the fact the game was taking place 5,000 miles away from US shores and the Cavaliers weren't even part of it.

This year’s NBA Japan Games were a marketing executive’s dream, mobilizing fans and wallets and further marrying the league’s brand with the sport’s growing popularity internationally. Scores of people packed in to watch a pair of preseason games between the Washington Wizards — featuring Rui Hachimura, one of two Japanese players in the NBA — and the reigning champion Golden State Warriors. The crowd went nuts anytime Hachimura touched the ball.

All of it was organized by the NBA and Rakuten Group Inc., a Japanese e-commerce giant that's been leveraging its sponsorship of the Warriors to build name recognition in the US. The company signed up with the team in 2017 at a cost of $20 million a year. That deal featured a logo patch on players’ jerseys and a partnership around merchandising. Rakuten and the Warriors renewed and expanded their pact in May — excellent timing because the team won the championship a month later. The Japan Games ran from Sept. 30 to Oct. 2.

Two-time NBA most-valuable player Steph Curry said at a press conference ahead of the games that the Warriors were “excited to play in front of our Japanese fans and hopefully make some new ones."

One of those fans was Korean rapper Suga from the boy-band BTS, who was gifted Curry’s sneakers afterward.

The success of Rakuten’s deal with the Warriors comes as China, a top global focus for the NBA, continues to impose strict pandemic restrictions. Africa and India are also international priorities, Deputy Commissioner Mark Tatum said at the CAA World Congress of Sports this month.

Rakuten says its brand recognition in the US has grown to almost 70% from 23% over the five years it has been working with Golden State. Its choice of NBA team also wasn’t by accident. The company’s regional headquarters is in Silicon Valley and executives say investing in the Warriors has been a big plus for recruitment and employee satisfaction.

"We have one of the most global and diverse fan bases around the world of any sports property," the NBA's Tatum said in a Bloomberg Television interview Monday. He credited the success of international players in driving interest in the league around the world.

Rakuten previously sponsored preseason games in Japan in 2019. Before that, the last time the NBA played in Japan was 2003. Ticket sales this year were about 40% higher than they were for the 2019 games and on-site merchandise sales were the highest ever for an NBA Global Games event, the company said.

“There are 6 million NBA fans here in Japan, of which one in six is a Warriors fan,” said Brandon Schneider, Golden State’s president and chief operating officer. “Warriors are the biggest team in the country and Rakuten gets credit for that. No question."

The recent games were the first time either the Warriors or the Wizards had played in Japan. The 2019 Japan Games featured the Toronto Raptors and Houston Rockets.

The Warriors will begin their campaign to repeat as champions on Tuesday night with the NBA regular-season tipoff.

(Updates with merchandise partnership in third paragraph. A prior version corrected the event organizers and ranking of NBA global priorities.)