The National Basketball Association (NBA) has reached a monumental new national television deal valued at an astonishing $76 billion. This groundbreaking agreement not only brings in fresh partners but also promises to enhance the viewing experience for basketball fans globally. Scheduled to commence in the 2025-26 season, the deal will span 11 years, concluding at the end of the 2035-36 season.
New Partners and Coverage
The new deal embraces a diverse range of media outlets, adding a media company, a broadcasting company, and a streaming service to its roster of partners. Despite these additions, long-time partners ABC and ESPN will retain their prominent roles. They will continue to air the NBA Finals games and broadcast one of the two conference finals series in ten out of the deal's 11 years. Additionally, ABC/ESPN will 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 will step in to cover one of the conference finals series in six of the 11 years. This broadcaster will also provide comprehensive coverage of the All-Star Game, NBA All-Star Saturday night, opening night, and Sunday night primetime games. The broadcaster and/or its streaming service will broadcast around 28 games in the first two rounds of the playoffs each season.
A novel feature of this new agreement involves Prime Video streaming service, which will stream one of the conference finals series in six of the 11 years. Prime Video will also carry NBA Cup games and Play-In Tournament games, in addition to streaming about one-third of the first and second postseason rounds each year.
Impact on NBA's Financial Landscape
This lucrative agreement stands in stark contrast to the current deal, a nine-year agreement valued at $24 billion, set to expire at the end of the 2024-25 season. The new deal represents a significant financial windfall for the NBA, increasing the league's annual national media income by roughly 2.6 times. Understandably, this influx of revenue is expected to have broad-reaching effects on the league's economic ecosystem.
The combined earnings of the 30 NBA teams were approximately $10.6 billion in 2023, with national television revenue being the largest contributor. As a result of the increased media income, franchise values and player salaries are anticipated to rise accordingly. However, it's important to note that the salary cap cannot increase by more than 10% per year. It is expected to rise by the maximum each year starting in the 2025 offseason.
NBA's Commitment to Fans
"Throughout these negotiations, our primary objective has been to maximize the reach and accessibility of our games for our fans," the NBA stated, underscoring the league's dedication to its viewership. Indeed, the new partnerships are poised to distribute NBA content across a wider range of platforms than ever before, promising to transform the fan experience over the next decade.
NBA Commissioner Adam Silver echoed this sentiment, remarking, "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."
Changes and Farewells
While this new deal heralds an exciting future for the NBA, it also marks the end of an era. Warner Bros. Discovery, a long-standing NBA partner, is not part of the new agreement. Turner Sports, which began broadcasting NBA games in 1989, is set to broadcast NBA games for one final season. The upcoming season is expected to be the last for the beloved show "Inside the NBA" in its current form.
The NBA expressed its gratitude, stating, "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."
As the league transitions to this new chapter, there is much anticipation about the transformative impact these new media partnerships will have on how fans consume NBA games. With enhanced accessibility and a diverse range of platforms, the future of NBA broadcasting promises to be as dynamic and engaging as the game itself.