Kevin Durant # 7 of the Brooklyn Nets shoots the ball against the Washington Wizards during a preseason game on December 13, 2020 at the Barclays Center in Brooklyn, New York.
Nathaniel S. Butler | National Basketball Association | Getty Images
After the National Football League celebrated its historic 11-year contract worth more than $ 100 billionAttention turned to the NBA’s deal that runs through the 2024-25 season. Early reflection in league circles suggests the NBA will seek a $ 75 billion rights package $ 24 billion Deal that pays $ 2.6 billion a year.
One person familiar with sports media businesses said the NBA could earn $ 70.2 billion over nine years, using metrics such as total viewer hours that networks networks use to determine the value of sports league rights can determine. The person also said that tier 1 sports rights are important for streaming services.
The person asked not to be identified for privacy reasons.
The NBA is currently partnering with AT & T.owned by WarnerMedia and DisneyThe latter agreed to pay the NFL $ 2.7 billion a year through 2033. Should the NBA triple its rights and repeat its nine-year contract, it would generate around $ 7 billion to $ 8 billion per season. That puts it just below the NFL’s new average of $ 10 billion a year once the new agreements begin.
The NBA has also closed a $ 1.5 billion streaming deal with a China-based company Tencent Holdings.
“I think everyone expects that as long as the public demonstrates through ratings that they are watching the NBA, they can probably expect an increase there too,” said the former president of CBS Sports Neal Pilson. “I would think the NBA will be looking for significant increases.”
The NBA has good reason to raise funds for their rights. The league has a more global appeal than the NFL and also has a younger demographic as Generation Z continues to support the NBA and Gen Alpha seems to continue the trend.
NBA Commissioner Adam Silver speaks ahead of the Miami Heat game against the Los Angeles Lakers in the first game of the 2020 NBA Finals as part of the 2020 NBA restart on September 30, 2020 at the AdventHealth Arena of the ESPN Wide World of Sports Complex Media in Orlando, Florida.
Garrett Ellwood | National Basketball Association | Getty Images
Even though The ratings went down in 2020 mainly due to pandemic factors, the NBA seen increases during the current 2020-21 season. The league is trying to create more meaningful games with it Play-in tournamentwho did well last year.
On a media call last week about the NFL’s new rights, ESPN President Jimmy Pitaro said the network was “very pleased” with the NBA’s partnership and “how those games have turned out”.
The NBA will be in great demand as a top sports league. Fox Sports was interested However, Pilson said the NBA will most likely stick with its current partners once new agreements are made.
“I think the NBA will stick with the two network packages,” said Pilson. “That gives them the promotional base, and sometimes when you end up with a lot of networks people can’t find games when they’re active. College basketball is the best example – you want to see a game and you don’t. ” knows where it is. “
It’s early again, but the second most popular league in the US sports landscape knows their day is coming. As of now, the goal is $ 75 billion.
Pitaro said: “The partnership with the NBA is incredibly important to us and we look forward to being back at the table with Adam [NBA commissioner Adam Silver] and his team when the time is right. “
The NBA declined to comment because of privacy concerns about the finances of their media operations.
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This article originally appeared on www.cnbc.com
