A sponsorship deal with Pasadena-based Chinese American East West Bank will help the Houston Rockets cover much of the cost of the 3-year, $25.1 million contract with which it won Jeremy Lin from the New York Knicks in July.
The deal will give East West Bank (EWB) both in-arena and on-air exposure through the 2014 season, the same duration as the Rockets’ contract with Lin. The deal will also raise the bank’s profile with its core Asian American clientele not only in Houston — where it has two branches — but across the US, China and Hong Kong where it has 119 branches. Its chairman and CEO is Dominic Ng and its COO is Julia Guow.
“He’s a good role model,” said the bank’s southwest region chief Esau Liu. “With the strategic alliance with the Rockets, in terms of marketing and promotion in China, I think it’ll be significant.”
Liu added that the deal “should be a good tactic to support our corporate strategy for the U.S. and China markets.” EWB already has a marketing deal with the Los Angeles Lakers.
The terms of the deal weren’t disclosed, but would likely run into the high 7 figures or low 8 figures over three years based on comparable deals. Having retained figure-skating champion Michelle Kwan as its spokesperson since March of 2005, East West Bank has experience using the drawing power of Asian American celebrities to raise its profile among core customers.
East West Bank was founded in 1973 to serve the Chinese American community. Since then the Pasadena-based bank has enjoyed the fastest growth rate of any California bank. Its 2009 acquisition of United Commercial Bank from the FDIC gives it assets of $23 billion, placed it ahead of City National Bank as the largest bank based in Southern California.
The Rockets have taken the lead among American sports franchises in using Asian starpower to boost its revenue stream. It signed Yao Ming as its number-one draft pick in 2002, and leveraged that into a major long-term marketing deal with Toyota. Yao also helped the Rockets sell broadcasting rights and merchandise in China.
“Over the past decade, the Rockets have developed and established an international following, particularly throughout Asia,” Rockets Chief Executive Officer Tad Brown said in a statement. “This partnership with East West Bank, a leader in the international banking community, will add to that global presence.”
Jeremy Lin is easily the biggest Asian American sports star in history. After being undrafted by the NBA after a spectacular career as the leading scorer in Harvard history, Lin was signed to a minimum-salary contract by the Golden State Warriors thanks to impressive play in the NBA summer league. He was cut in 2011 to make salary cap room, then signed briefly by Houston last fall before being cut a month later, again to make salary-cap room.
Lin was picked up by the Knicks in December but remained a benchwarmer until injuries to starting guards gave him playing time in a game against the Nets in early February. A breakout performance elevated him to the starting point-guard spot and ignited a 25-game streak that inspired Linsanity. Since February Lin has been the most-talked about player in the NBA and landed him on the cover of Time as one of the 100 most influential people.
On the New York Knicks Lin was one of the least experienced players, but on a young, rebuilding Houston team he will be one of the more experienced, giving him ample room to demonstrate his generalship of the pick-and-roll offense.
