The NBA has reached a significant milestone by finalizing an all-encompassing national television deal valued at a staggering $76 billion. Starting in the 2025-26 season, this momentous 11-year agreement introduces a fresh lineup of media partners including a new media company, a broadcasting company, and a streaming service. Set to conclude at the end of the 2035-36 season, this contract supplants the current nine-year, $24 billion deal which expires at the closing of the 2024-25 season.
Maximizing Reach and Accessibility
"Throughout these negotiations, our primary objective has been to maximize the reach and accessibility of our games for our fans," the NBA stated. The league’s new partners, Disney, NBCUniversal, and Amazon, will broadcast NBA content across myriad platforms, heightening the fan experience both in the United States and globally. NBA Commissioner Adam Silver commented, "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."
Broadcasting Arrangements
Under the terms of the agreement, ABC and ESPN are set to continue their tradition of airing NBA Finals games. Additionally, ABC/ESPN will broadcast one of the two conference finals series in 10 out of the 11 years covered by the deal. Their coverage extends to Christmas Day games, marquee Saturday and Sunday regular-season matchups, and around 18 games during the first two rounds of the postseason each year. A second broadcasting company will handle the other conference finals series in six of the 11 years, providing comprehensive 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 also televise approximately 28 games in the early playoff rounds each season. Furthermore, Prime Video will stream one of the conference finals series in six of the 11 years, in addition to carrying NBA Cup games and Play-In Tournament games. Prime Video will also handle streaming duties for about one-third of the first and second postseason rounds each year.
Impact on Finances and Competitive Balance
This landmark deal dramatically bolsters the NBA's revenues, increasing its annual national media income by roughly 2.6 times. Given this influx of funds, expectations are high for franchise values and player salaries to soar. Despite the increased revenue, certain financial safeguards are in place; notably, the salary cap cannot rise by more than 10% per year. Anticipations are that the salary cap will escalate by the maximum percentage yearly starting in the 2025 offseason. Notably, national television revenue is the largest contributor to the NBA's combined earnings, which were approximately $10.6 billion for the 30 teams in 2023.
The Conclusion of an Era
Even as the NBA looks toward a bright future under the new agreement, it will also bid farewell to a cherished chapter. Warner Bros. Discovery and its subsidiary Turner Sports, who have been synonymous with NBA coverage since 1989, will not be part of the new deal. The upcoming season is likely to be the last for the beloved show "Inside the NBA" in its current form. The league expressed its gratitude by 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."
With these monumental changes on the horizon, the NBA family and its legion of fans hold high hopes for an enriched viewing experience that aligns with the ever-evolving media landscape. This new deal, spanning over a decade, promises not only to increase the league's financial strength but also to revolutionize how fans engage with the sport they love.