NBA Nearing a $76 Billion Broadcast Deal with NBC, Amazon, and ESPN

The National Basketball Association (NBA) is on the brink of securing a colossal broadcast agreement with NBC, ESPN (owned by Disney), and Amazon. This deal could potentially generate up to $76 billion in media revenue over an 11-year span, according to sources familiar with the ongoing negotiations.

NBC's Proposed Deal

NBC is reportedly close to reaching an agreement with the NBA to pay an average of $2.5 billion per year. This deal would allow NBC to broadcast approximately 100 games per season, with around half of these games being aired exclusively on their Peacock streaming service. This demonstrates a significant investment in the future of streaming. Games are scheduled to be aired on NBC on Tuesdays and Sundays, provided they do not clash with NBC's "Sunday Night Football."

Amazon's Package

Amazon's proposed package, costing $1.8 billion annually, would encompass regular-season and playoff games, the new NBA in-season tournament, and the "play-in" games where teams vie for the final playoff spots. Amazon would also receive a portion of the conference finals, which would be shared among the media partners on a rotational basis.

Disney's Continued Partnership

Disney is set to maintain its NBA package and will continue to broadcast the NBA Finals. The annual payments for this package are expected to average around $2.6 billion, a significant increase from the $1.5 billion under the current agreement. Disney will receive fewer games than in its present deal. ESPN's agreement will permit the company to broadcast games on its direct-to-consumer streaming service, slated for launch in 2025.

Deal Effective After 2024-25 Season

These deals are expected to come into effect following the 2024-25 season. This news arrives as recent Nielsen ratings data reveals a decrease in postseason viewership. The NBA postseason's opening round averaged 3.52 million viewers across ABC, ESPN, and TNT/truTV, marking a 9% decline compared to the previous year's 3.86 million.

NBA's Lower Ratings Despite More Games

Despite the NBA having more games than the NFL, it attracts much lower ratings, according to additional Nielsen data. Each of the NBA's 30 teams plays 82 regular season games, most of which hold little significance. The majority of viewers only tune in for the postseason playoffs.

Is This the NBA's Peak Media Deal?

This leads us to ponder whether this could be the pinnacle media deal for the NBA. It's a thought-provoking question, considering the declining viewership numbers. What are your thoughts on this matter? Feel free to share this article with your friends and engage in a discussion. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6 pm.