The NBA has made headlines with the announcement of a monumental new national television deal. This latest agreement, valued at a staggering $76 billion, spans 11 years and introduces new media partners to the league's broadcasting fold. The deal is set to commence in the 2025-26 season, running through the end of the 2035-36 season.
Signifying a huge leap from the current nine-year, $24 billion agreement that concludes at the end of the 2024-25 season, the new deal represents a significant boost to the NBA’s revenues. With this partnership, the NBA's annual national media income is projected to surge by roughly 2.6 times, underscoring the league’s escalating market value and global appeal.
New Media Partnerships
The NBA's new media deal includes Disney's ABC and ESPN, which will continue to have a prominent role in NBA coverage. ABC and ESPN will maintain their broadcasting of the NBA Finals, alongside exclusive rights to one of the two conference finals series in 10 out of the 11 years. Additionally, they will televise the highly popular Christmas Day games, marquee Saturday and Sunday regular-season matchups, and approximately 18 games in the first two rounds of the postseason each year.
Joining ABC/ESPN are a new broadcasting company and a streaming service. The broadcaster will air one of the conference finals series in six of the 11 years, as well as provide coverage for major events such as the All-Star Game, NBA All-Star Saturday night, opening night, and Sunday night primetime games. Its streaming arm will broadcast around 28 games in the early playoff rounds each season.
Amazon Enters the Arena
Amazon's Prime Video also enters the NBA fray, securing the rights to stream one of the conference finals series in six out of the 11 years. Prime Video's portfolio will additionally include NBA Cup games, Play-In Tournament games, and approximately one-third of the first and second postseason rounds each year. This partnership aligns with the NBA's strategic efforts to expand its digital footprint and enhance engagement with a tech-savvy audience.
Transition and Transformation
This media shake-up marks the end of an era for Warner Bros. Discovery, which will no longer be part of the NBA's media ecosystem. Turner Sports, a subsidiary of Warner, has been broadcasting NBA games since 1989. The upcoming season is expected to be the last for "Inside the NBA" in its current form, closing a significant chapter in sports broadcasting history.
The NBA expressed its gratitude towards Turner Sports for its "award-winning coverage" and looks forward to "another season of the NBA on TNT." The sentiment reflects the league’s respect for Turner’s long-standing contribution to NBA visibility and storytelling.
Financial and Structural Impacts
The new media deal is poised to have significant financial and structural implications for the NBA. The league's salary cap is expected to rise by the maximum allowed 10% each year starting in the 2025 offseason, driven by the increased revenue. Such financial growth is anticipated to elevate franchise values and player salaries, further enhancing the competitive landscape of the league.
In 2023, the combined earnings of the 30 NBA teams were approximately $10.6 billion, with national television revenue being the largest contributor. The new deal is not just about revenue; it's also about reach and accessibility. As NBA Commissioner Adam Silver remarked, "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."
Throughout these negotiations, the NBA's primary objective has been to expand the reach and accessibility of its games, ensuring that more fans can experience the excitement of NBA basketball. This strategic move aims not only to increase revenue but also to enhance fan engagement and broaden the league’s global footprint.
As the NBA embarks on this new media journey, the league stands at the threshold of a new era. With a diverse array of broadcasting and streaming options, fans can look forward to more ways to enjoy the game they love, while the league continues to grow both financially and in popularity around the world.