This is a video demonstration of an LED basketball court in Japan. The images on the court aren't projected from above like some stadiums here in the US, the actual court is made of a bunch of LED panels (no word if the panels affect bounce vs a wooden court). That way players don't have to worry about lights shining in their eyes if the court is displaying something mid-game. Still seems like it would still be distracting though. Plus apparently there are fireballs and smoke machines. Why even play basketball at all, why not just commit to being a circus?
Keep going for a video demo.
Thanks to Mungo9000, who agrees Space Jam 2 is going to be all over this.