China group in NBA deal
ORLANDO, Fla.–The Cleveland Cavaliers have signed an agreement with an investment group from China to become minority owners of the NBA franchise and its arena, a partnership that could impact superstar LeBron James’ future with the team.
The Asian conglomerate, which includes JianHua Huang, a Chinese businessman who has brokered sponsorship deals with the New York Yankees and other sports franchises in the U.S., could acquire up to 15 per cent of Cavaliers Operating Company, the entity that owns the team and operates Quicken Loans Arena.
The deal, completed by the sides in recent days, must be approved by the league’s board of governors.
Team president Len Komoroski said the group approached Cavs principal owner Dan Gilbert about the partnership and called the business venture "an exciting new opportunity free credit score.”
Gilbert’s role in overseeing the organization and 20,000-seat arena will not be affected by the new partners.
The NBA has been pushing for an international group to become involved in ownership on a minority level. And with a huge fan base already in China the league has entered into several ventures with the nation to develop players and build arenas to NBA specifications.
Associated Press