The NBA has announced a groundbreaking new national television deal that is set to reshape the landscape of basketball broadcasting. The agreement, valued at a staggering $76 billion, spans 11 years and introduces new media partners, marking a significant shift in how fans will consume NBA content. This lucrative deal, which will commence in the 2025-26 season and run through the 2035-36 season, replaces the existing nine-year contract worth $24 billion, set to expire at the end of the 2024-25 season.
The new arrangement brings in a media company, a broadcasting company, and a prominent streaming service as partners, signaling the NBA's commitment to maximizing the reach and accessibility of its games. NBA Commissioner Adam Silver emphasized the global reach of these new partnerships, stating, "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."
Significant Changes in Broadcasting
Under the new deal, ABC and ESPN will retain their roles in airing NBA Finals games, ensuring continuity for fans. Additionally, ABC/ESPN will broadcast one of the two conference finals series in 10 out of the 11 years, continue to televise Christmas Day games, marquee Saturday and Sunday regular-season matchups, and approximately 18 games in the first two rounds of the postseason each year.
Another broadcasting company has secured rights to cover the other conference finals series for six of the 11 years, taking over some responsibilities from existing partners. This broadcaster will also provide coverage of the All-Star Game, NBA All-Star Saturday night, opening night, and Sunday night primetime games. Their scope extends to broadcasting around 28 games in the first two rounds of the playoffs each season, jointly with its associated streaming service.
Prime Video, one of the new entrants in this deal, will stream one of the conference finals series in six out of the 11 years. Furthermore, Prime Video will carry NBA Cup games, Play-In Tournament games, and stream about one-third of the first and second postseason rounds each year. This marks a pivotal step towards integrating streaming services into mainstream sports broadcasting.
Economic Impact and League Dynamics
The financial implications of this new deal are profound. The NBA’s national media income is projected to increase by approximately 2.6 times, signifying a substantial boost to the league's revenue. This increase is expected to have ripple effects across various financial aspects of the NBA. Franchise values and player salaries are anticipated to rise, driven by the considerable influx of media revenue.
Moreover, the salary cap, which dictates the total amount each team can spend on player salaries, is forecasted to escalate by the maximum allowed 10% per year, starting from the 2025 offseason. This will provide teams with more flexibility in managing their rosters and, potentially, creating more competitive balance across the league.
In 2023, the combined earnings of the 30 NBA teams were approximately $10.6 billion, largely bolstered by national television revenue, which remains the largest contributor. With the new deal in place, these figures are expected to see a marked increase, fortifying the economic stability and growth of the league.
A Nod to the Past, Embracing the Future
Warner Bros. Discovery, which includes Turner Sports, will not be part of the new agreement. Turner Sports has had a long-standing presence in NBA broadcasting since 1989, with its coverage and the popular show "Inside the NBA" becoming staples of the basketball viewing experience. "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," the NBA expressed, acknowledging the end of an era.
As the NBA moves forward with its new media partners, it remains committed to enhancing the fan experience through strategic distribution of its content. "Throughout these negotiations, our primary objective has been to maximize the reach and accessibility of our games for our fans," the NBA stated, highlighting the league's dedication to its audience amid these transformative changes.
This landmark deal not only sets a new financial benchmark for the league but also embraces the evolving landscape of media consumption, ensuring that NBA content remains widely available and engaging for fans around the globe.