Wanted: Formula that Turns Curious Fans into Core Supporters

In Mexico, only soccer outranks basketball in popularity and the local representative of the National Basketball Association (NBA) says the key to even greater success is to turn fans into consumers. “When it comes to team sports, basketball is the second-most popular sport in the country. Our priority is to maintain this popularity and translate it into consumption for the NBA and its partners,” says Raúl Zárraga, Vice President and Managing Director of NBA Mexico.

Zárraga estimates there are 30 million Mexican fans that either play basketball or consume NBA content by either buying products or watching games on TV. NBA categorizes its fans in three blocks: curious, casual and core. “Our task is to find a formula that turns curious fans into core supporters.”

The country’s established fan base and the game’s success here has made Mexico a priority for the NBA. “Although the Mexican market might seem much smaller than others, Zárraga says there are several factors that make Mexico a priority. “Population, market size, the number of people playing basketball, closeness to the US and a history of regular season NBA games in the country make Mexico important for the organization.”

As in any sport, developing a broader market and fanbase depends heavily on access. For that reason, Zárraga focuses NBA Mexico’s efforts on the creation of content. “Our strategy includes broadcasting through three main points of contact: open and cable TV and mobile carriers. We also have the NBA TV option, which allows users to watch content on the internet.” Unlike other countries where TV ratings have declined, Zárraga says in Mexico television continues to play a major role. “Television is still king when it comes to massifying products. Televisa is our partner for broadcasting games on open TV and ESPN is our ally for cable TV transmissions, broadcasting up to eight games per week.” The creation of content, both for TV and digital media, is integral to NBA Mexico’s business development strategy. “Content is sold to sponsors and advertisers but this only works if there is an audience. The only way to have an audience is to have great content.” Content is also NBA’s best tool for competing with other entertainment activities, Zárraga adds.

It is not the NBA’s intention, however, to compete for fans and viewers of other sports, Zárraga says. He acknowledges that there might be more hype surrounding NFL games and the Formula 1 in Mexico City, for example, but there is good reason for that. “After 25 years of games in Mexico City, having regular season games in the country has become rather normal and the noise that surrounds us is different than that surrounding these events that had not been in the country for several years. If we consider the total attendance at our four games, we attract around 80,000 fans to Arena Ciudad de México, which is equivalent to the spectators that the NFL game attracts.”

In addition to promoting NBA games, Zárraga says it is equally important to encourage the creation of talent for the NBA in Mexico. “If we want the market and consumption to grow, we have to generate a basketball ecosystem that makes sense. That is why we have set up different platforms like the NBA Academy, which is a platform for inorganic growth.” The NBA Academy is an elite basketball training center located within CONADE’s basketball academy. It hosts 12 players: seven Mexicans and five from other Latin American countries. “The Academy’s players travel to other countries to compete, all financed by the NBA. The idea is to generate elite talent for the association,” says Zárraga. It is an ambitious goal; only four Mexicans have ever played in the NBA. Jorge Gutierrez was the last, having been cut by the Brooklyn Nets prior to the 2017 season, according to NBA.com.

Zárraga says the NBA is considering setting up a farm team in Mexico to capitalize on the sport’s popularity and develop local talent. “We are analyzing the possibility of creating a G-League team, which is the NBA’s development league. Around 50 percent of NBA players drafted in the first round come from a G-League team,” he says. Although there are still several financial details to iron out, Zárraga believes having a G-League team could be a precursor to establishing an NBA team in Mexico. The idea is not without precedent as hockey’s professional league, the National Hockey League, has teams based in both Canada and the US. Until that day, Zárraga says NBA Mexico will continue with its mission: bringing NBA content and products to the Mexican people