When someone in an organization goes rogue and sends a tweet, what’s the potential damage? The NBA found out the hard way that the financial impact could be significant.

In October 2019, Houston Rockets General Manager Daryl Morey supported Hong Kong protests in a tweet. As a result, Chinese advertisers pulled their ads and broadcasters wouldn’t air games. Now, NBA commissioner Adam Silver admits the loss will total “hundreds of millions” of dollars and “probably less than $400 million.” Silver expanded on the damage:

“It’s substantial. I don’t want to run from that. We were taken off the air in China for a period of time, and it caused our many business partners in China to feel it was therefore inappropriate to have ongoing relationships with us. But I don’t have any sense that there’s any permanent damage to our business there.”

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Discussion:

• Review the situation from October. What lessons can managers learn?

• What’s your view of Silver admitting the loss? What are the arguments for and against his honesty?