The NBA has secured a groundbreaking new national television deal, set to dramatically boost its visibility and revenues. This 11-year agreement, valued at an astounding $76 billion, marks a significant leap from the current nine-year, $24 billion deal that will expire at the end of the 2024-25 season.
Set to commence with the 2025-26 season and run through the 2035-36 season, the deal introduces new media partners, including a media company, a broadcasting company, and a streaming service. NBA Commissioner Adam Silver optimistically noted, "Our new global media agreements with Disney, NBCUniversal, and Amazon will maximize the reach and accessibility of NBA games for fans in the United States and around the world. These partners will distribute our content across a wide range of platforms and help transform the fan experience over the next decade."
Expanded Coverage
The new agreement ensures continued coverage of key NBA events on ABC and ESPN, including the NBA Finals games, conference finals series, and Christmas Day games. ABC/ESPN will also televise marquee Saturday and Sunday regular-season matchups and approximately 18 games in the first two rounds of the postseason each year.
Moreover, another broadcaster will handle one of the conference finals series in six of the 11 years and provide coverage of the All-Star Game, NBA All-Star Saturday night, opening night, and Sunday night primetime games. This broadcaster, along with its streaming service, will cater to around 28 games in the early playoff rounds annually, ensuring comprehensive coverage for fans.
New Streaming Dynamics
The deal also heralds a new era of streaming with Prime Video taking center stage. Prime Video will stream one of the conference finals series in six of the 11 years, as well as carry NBA Cup games and Play-In Tournament games. It's set to stream about one-third of the first and second postseason rounds each year, offering fans unprecedented access and flexibility in how they consume NBA content.
Financial Implications
This new media agreement offers a significant increase in revenue for the NBA, boosting its annual national media income by roughly 2.6 times. The combined earnings of the 30 NBA teams were approximately $10.6 billion in 2023, with national television revenue contributing the most. As a result, franchise values and player salaries are expected to rise, although it’s noteworthy that the salary cap cannot increase by more than 10% per year. This increase is predicted to hit the maximum each year starting in the 2025 offseason.
Transition Period
As the NBA transitions to this new deal, Warner Bros. Discovery, specifically Turner Sports, will not be part of the new agreement. With a legacy of broadcasting NBA games since 1989, the upcoming season is anticipated to be the last for "Inside the NBA" in its current form. "We are grateful to Turner Sports for its award-winning coverage of the NBA and look forward to another season of the NBA on TNT," expressed the NBA, acknowledging the valuable partnership.
Revolutionizing Fan Experience
Throughout the negotiation process, the NBA's primary objective has been to make the games more accessible and widen their reach. Reflecting on this, the NBA stated, "Throughout these negotiations, our primary objective has been to maximize the reach and accessibility of our games for our fans." The inclusion of diverse platforms through partners like Disney, NBCUniversal, and Amazon ensures that fans will have more ways than ever to engage with the NBA.
In conclusion, this landmark media deal represents not just a win for the NBA in financial terms but also promises to enhance the viewing experience for fans worldwide significantly. By extending its reach across multiple platforms and maintaining comprehensive coverage of key events, the NBA is poised to remain at the forefront of professional sports entertainment for years to come.