How NBC Turned into the Key Player in the NBA’s Lucrative TV Rights Deal

A surprising development unfolded in the forum of sports broadcasting: the NBA’s new TV rights deal, anticipated to highlight the financial clout of streaming platforms, actually reaffirmed the dominance of traditional broadcast networks in sports contracts.

The extensive 11-year agreement, valued at an astounding $76 billion, sees NBCUniversal making a comeback, Amazon Prime Video entering the fray, and Warner Bros. Discovery’s TNT exiting. ESPN and ABC remain integral to the league, holding onto the rights to broadcast the NBA finals. A potential legal battle looms regarding whether WBD could match Amazon’s offer for a 66-game package and distribution rights in pivotal international markets like Mexico, Brazil, and various European countries.

With this deal set to commence in the 2025-2026 NBA season, it marks another milestone for Prime Video’s live sports coverage. However, NBCUniversal has placed the biggest wager, securing up to 100 regular-season games per season by outbidding WBD and others. NBCUniversal’s commitment involves $2.5 billion annually, while Amazon will spend $1.8 billion. ESPN/ABC, despite reducing their game package, will pay $2.6 billion annually due to the premium for postseason games.

A significant chunk of NBCUniversal’s games will be broadcast on NBC, specifically on Sunday and Tuesday nights, capitalizing on NBC’s national network presence. Over half of these games will air on the traditional NBC network, leveraging local affiliate stations to cater to regional audiences. NBCUniversal’s aggressive spending aims to bolster Peacock, but it was the promise of traditional television broadcasts that finalized the deal. The NBA games add to NBC’s legacy, dating back to 1990-2002.

For the first time, the NBA will have game coverage across two broadcast networks. ESPN/ABC’s new agreement includes 80 regular-season games, with over 20 airing on ABC. The NBA Finals will continue to be an ABC staple, as they have been since 2003. The NBA’s approach captures the benefits of both broadcast and streaming, ensuring wide availability of games through platforms like Peacock and Amazon, and soon via ESPN’s standalone streaming service.

WBD lacked the leverage of an old-fashioned broadcast network, a crucial factor given the struggles in the basic cable sector. NBC’s combination with Prime Video emerged as a better long-term partner, enhanced by Prime Video’s strong international presence, aligning with the NBA’s global priorities.

“The return of NBA basketball to the NBC Sports family comes with enormous benefits and excitement for our fans,” stated NBA Commissioner Adam Silver while announcing the anticipated deal. “NBCUniversal, through its multiple platforms and extensive resources, promises to enhance the deep tradition and history of NBA on NBC.”

This TV deal focuses on U.S. national rights, negotiated over the past two years amid the decline of traditional cable against rising streaming competition. The regional sports networks, once a crucial segment for local sports fans, are also faltering. Bally Sports, a significant RSN owner, entered Chapter 11 bankruptcy late last year.

Echoing the NFL’s decision in 2021, the NBA prioritized broadcast distribution for its broad reach and potential to deliver substantial audiences. Live sports remain one of the few programming forms that unite large audiences, providing prime exposure for sponsors. The NBA’s challenge was crafting a comprehensive, long-term deal that secures its future without compromising present strengths.

NBCUniversal needed premium content for Peacock, and their significant financial offer cemented the agreement. Daniel Kurnos, an equity analyst at Benchmark, pointed out that despite discussions about the disruptive impact of streaming, sports team acquisitions of local broadcast TV rights highlight an ongoing value in broadcast models.

“The willingness of these teams to secure profitable local deals with broadcasters is notable,” Kurnos remarked. “Watching the return of local sports to broadcast platforms indicates a beneficial model that remains essential.”

Source: Variety