As the New York Knicks prepare for life without Jeremy Lin, we take a quick look at what this means for their marketing and accounting department.
The Houston Rockets have made a bold move to acquire Jeremy Lin, signing him to a 3 year deal in the neighbourhood of $25 million dollars. Is this madness or will Jeremy Lin pay for himself?
Jeremy Lin is a marketing machine. Merchandise, sponsorships, tickets sales, broadcast rights, concession sales, and peripheral apparel will all receive a nice bump due to the ‘Linsanity Effect’. Consider this: during Lin’s astronomical rise from obscurity (February 4 to February 13), stock of MSG (Madison Square Garden) jumped 10% (or $170 million in market cap), resale ticket prices for Knicks games rose 25%, Knicks apparel and jerseys accounted for 5 of the top 10 top selling items from the NBA.com shop, and his name was tweeted 281,000 times. ‘Linsane’ indeed.
The Houston Rockets are no strangers to the ‘Linsanity Effect’. For years they enjoyed Yao Ming and his influence; creating the second largest market for the NBA outside of America in China. An estimated 20 million viewers each week, millions in merchandise and apparel sales, and lucrative broadcasting rights can all be attributed to Yao Ming and his fame.
So while Jeremy Lin will have big shoes to fill, one thing is certain: The Jeremy Lin marketing machine has touched down in Houston, and his marketability makes Lin worth his weight in gold. Linsanity has only just begun.