00:00 This episode of the podcast is a deep dive into the history and strategy of the NBA, covering how it built itself up from being the underdog of major American sports to becoming the second most popular sport in the world.

07:47 Basketball was invented in the 1800s by James Naismith, a Canadian American, and quickly spread through YMCA organizations in the US, Canada, and internationally, including China, where it became popular among college students and members of the Communist Party. The game evolved over time, with the introduction of dribbling and standardized team sizes, and professional basketball teams like the Celtics, Harlem Globetrotters, and New York Renaissance Five emerged before the establishment of professional basketball leagues.

15:58 The NBA was founded in 1946 by the owners of ice hockey arenas who wanted to make more money on off nights, and it took them five years to come up with the idea for a shot clock.

24:06 During the 12 year run from 1957 to 1969, the Boston Celtics were possibly the biggest dynasty in the history of sports, with only two years where they were not the NBA champion and only one year where they weren't in the finals.

32:05 In 1964, NBA players threatened to walk out of the All-Star Game unless the league agreed to a pension plan, marking the first example of players unionizing and making demands of owners.

40:29 The ABA and NBA engage in a battle for dominance, with the ABA implementing innovative rules and creating the slam dunk contest, leading to a merger between the two leagues that takes five years to settle and results in the NBA abolishing the reserve clause in contracts, allowing for free agency.

48:41 The NBA absorbs the ABA teams in a merger, but the NBA holds all the leverage, making the ABA teams pay for entry, not recognizing any ABA records, and forcing the New York Nets to pay the New York Knicks for invading their territory.

57:01 In 1984, the NBA gets its first competent leader in David Stern as commissioner, who serves for 30 years and presides over major developments in the league, while also in the same year, Michael Jordan joins the NBA as the third pick in the draft.

01:05:35 David Stern revolutionizes the NBA by negotiating new TV deals, implementing a drug testing policy, internationalizing the game, launching the WNBA, and embracing technology, all while facing criticism for controversial decisions like the dress code.

01:14:07 The legacy of Michael Jordan and David Stern's impact on the NBA includes NBA players being the highest paid athletes in the world, having the largest social media followings and influence among American sports players, and former NBA athletes becoming entrepreneurs and business people at a level that eclipses any other sport.

01:23:22 The NBA recovered from a drop in ratings and a narrative of the league being filled with thugs by implementing a dress code that players like Dwayne Wade and LeBron James embraced, leading to a transformation of players' fashion and the rise of social media followings, ultimately laying the groundwork for the modern NBA.

01:31:49 The NBA's international appeal and focus on technology, including their partnership with Turner for League Pass and NBA TV, puts them in a strong position for future growth compared to other sports leagues like the MLB and NFL.

01:40:31 The NBA's investment in streaming deals, social media presence, and empowering players through social media has given them a significant advantage over other sports leagues like the NFL and MLB.

01:48:46 The NBA's strategy of allowing players to have their own presence on social media and amplifying it has not only led to increased ad impressions and revenue, but also the ability to gain new fans for life, while also playing a leadership role during the coronavirus shutdown and facing tensions with China.

01:57:28 The NBA generates $8.8 billion in revenue per year, with approximately half of that coming from broadcasting deals with ESPN and TNT.

02:05:52 The NBA generates a significant portion of its revenue from TV contracts, licensing and merchandising, and ticket sales, with additional revenue coming from China and potential future growth in media rights deals outside the US.

02:14:49 The NBA has a significant advantage over other sports leagues in terms of attracting younger fans and leveraging technology and internationalization to increase its value.

02:23:52 The NBA's ownership group is relatively young and comprised of entrepreneurs, which has allowed the league to be more experimental and progressive compared to other leagues.

02:32:20 The NBA's revenue sharing and collective bargaining agreement ensure a fair distribution of revenue between owners and players, but the profitability of each team varies and some owners may struggle to continue supporting their teams.

02:40:52 Meow Wolf, a group of indie artists, has ambitions to become the next Disney by creating unique experiences and IP, and they are building out locations in Vegas and Denver.