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NBA, China feud could hit league’s bottom line, which has teams thinking of lower salary cap

NBA Shanghai Game 2019 - Previews

SHANGHAI, CHINA - OCTOBER 10: General view inside the Mercedes-Benz Arena ahead of NBA Shanghai Game 2019 between Brooklyn Nets and Los Angeles Lakers on October 10, 2019 in Shanghai, China. (Photo by Liu Jianmin/VCG via Getty Images)

VCG via Getty Images

The league does not hand out official numbers on this, but it is believed that income from China accounts for at least 10 percent of the net revenue flowing into the NBA (and that percentage is growing fast). A growing number of Chinese companies have lined up to do business with the NBA, a league and sport popular with youth in China.

Until the firestorm caused by Rockets’ GM Daryl Morey’s Tweet about Chinese protestors.

Since then 11 Chinese companies who partner with the NBA — including shoe company Anta as well as, Changhong, Meiling, Dicos, EHi Car Rental, Master Kong, and WuZun among others — have suspended working with the NBA.

That could impact the NBA’s bottom line, something Keith Smith of Yahoo Sports Tweeted about.

Any cap hit from this could impact teams in free agency next summer (even with what will be a down market).

With the Lakers and Nets playing their games in China this week, most observers expect this controversy to slowly die down. Business will return to normal because it’s good for both sides.

But teams are going to be ready, just in case.