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NBA Explores Multiple Distributors for Media Rights Deal, Could Boost Player Salaries

As NBA negotiates new television deal, Amazon, Apple, and NBC emerge as potential partners with potential for increased revenue leading to unprecedented heights in player salaries.

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Overview

  • The NBA is exploring multiple partners for distribution as its current television rights deal nears its end. Potentially, leading platforms like Amazon, Apple, and NBC could significantly increase league revenue and boost player salaries.
  • The current nine-year agreement, which runs through the 2024-25 season, earns the NBA an average of $2.67 billion per season, nearly triple the $930 million per year from the previous eight-year contract. The next deal could involve additional outlets beyond ESPN/ABC and TNT, which currently air a combined 165 regular-season games.
  • Streaming platforms like Amazon and Apple have expressed interest in offerings similar to Amazon's 'Thursday Night Football' package and Apple's multi-country deal with Major League Baseball, respectively.
  • This increase in the NBA's media rights contract could potentially boost player salaries to unprecedented levels. The last media-hosting deal, worth $24 billion, led to a significant increase in player salaries, which could repeat with the new deal.
  • However, there are financial pressures that could affect the future of sports rights deals. The changing media landscape, including the rise of cord-cutting and the collapse of the regional sports network model, may impact the scale of investment in sports rights in the future.