NBA's new TV deal, maybe not smooth sailing

[wco81]

Teams are signing stars to huge deals, such as the Jaylen Brown and now today, AD's extensions.

The numbers being reported are assuming 10% salary cap increases every year after the new TV deal is signed.

But now you have a big strike in Hollywood, with screenwriters and actors demanding more share of streaming profits while companies are reporting billions in losses from streaming, such as Disney (owns ESPN) and WBD (owns TNT).

As noted above, Disney is trying to determine how much they want to be in the linear TV business when ESPN is losing viewers and they're laying off a lot of their most expensive on-air talent.

So is Disney going to re-up with a huge deal for the rights to broadcast NBA games?

Same question for WBD and TNT's rights.

The assumption is that if these media companies won't pay the 3X money that NBA is looking for, then others, like NBC and tech companies like Amazon and Apple will pay t he asking price for those rights.

Recently Apple offered a deal for Pac 12 TV rights but the money was apparently paltry, conditional based on how many subscribers would actually pay to watch Pac 12 football and basketball games. So many of the Pac 12 schools have been joining other conferences.

Washington and Oregon just joined the Big 10, even though they will get less TV money than other Big 10 schools, putting them at a competitive disadvantage. But apparently it was still more than any deal the old husk of the Pac 12 could get.

So who knows, maybe the TV sports bubble is popping for every league other than the NFL and the English Premier League.


But sports are the only thing linear TV has which keeps millions of people paying hundreds a month for cable TV. NBA offers bulk of content, 4 times as many games as the NFL and programming for 8-9 months (through the Finals in June) versus 5 months of NFL games and not nearly as many games per week or hours of programming for the networks which have TV rights.

Hmm, maybe those $60 and $70 million a year salaries won't be hit as soon as people think.

[Knightfall]

Isnt comcast still waiting to buy WBD in 2024. Which will then probably be merged to peacock.

[Lalouie]

if i'm network i'm gonna choke the nba on this load management stuff

[Lockdown504090]

if i'm network i'm gonna choke the nba on this load management stuff

its interesting right? in the CBA negotiations, neither party was incentivized to combat stars not playing in games(injury, load management, personal or tanking) but tv deal negotiations would bring an interested party to the table. I personally dont care and have no issue watching terrance mann battle mo bamba next season, but tv companies could force the nba and PA to do something in order to get that huge deal they NEED at this point.

[Ito]

They should get some NBA games on the local channels how they showed games back then on NBC.. they be showing some wnba games on the locals from time to time, I seen games on ION and UPN

[CelticsFTW]

It’s always interesting to me how these TV deals get done and the TV networks are obviously hoping to make the $$ off advertisements and commercials and such.

I can honestly say I’ve never ever in my life bought something because I saw it on a TV commercial. NBA loves to shove Hyundai/Kia/Genesis down our throat, I truly wonder if there is even one person in the world who bought a Kia or Hyundai at least in part because how NBA games always mention it for advertising.

Idk, maybe just me but I’m always surprised that these big companies pay so much $$ for advertising to these TV networks and sports leagues as if the average American is going to buy their product because of it.

Meh, it's more subtle than that. The primary goal of most advertising is to simply create brand awareness, not necessarily to spur a conscious direct choice to purchase immediately upon viewing.

Not immediately upon viewing but for example on the car ones, like I said NBA has shoved Hyundai down its fans throats for at least 10-12 years now. I’ve bought 3 cars in that span including one last year and never did I remotely consider Hyundai. It’s nothing against the company itself (they make solid vehicles) but it’s not something that interests me.

I can’t speak for everyone so I guess perhaps others do maybe think when it comes time to buy a car “Hey what was that one Hyundai SUV that we keeping seeing the ad for when watching basketball games? Let’s maybe go take a look at that one” or something.

Yeah, but someone is apparently buying Hyundai cars in the US:

„ Today, Hyundai is among the best selling car brands in the US. In 2018, Hyundai-branded vehicles holds 4% of the car market in the US. Their sales in 2010s has been much better than in 2000s. In 2016, the brand sold 768,057, a record for Hyundai.“

Scroll down on this link and you can see the sales for Hyundai in much more detail: https://www.goodcarbadcar.net/hyundai-us-sales-figures/

[JN61]

75 billion for this product? NBA is about to be bigger bubble to burst than any video game sports.

There is no way on earth there is anywhere near this kind of value for anyone outside of NBA in here.

[Revived]

Meh, it's more subtle than that. The primary goal of most advertising is to simply create brand awareness, not necessarily to spur a conscious direct choice to purchase immediately upon viewing.

Not immediately upon viewing but for example on the car ones, like I said NBA has shoved Hyundai down its fans throats for at least 10-12 years now. I’ve bought 3 cars in that span including one last year and never did I remotely consider Hyundai. It’s nothing against the company itself (they make solid vehicles) but it’s not something that interests me.

I can’t speak for everyone so I guess perhaps others do maybe think when it comes time to buy a car “Hey what was that one Hyundai SUV that we keeping seeing the ad for when watching basketball games? Let’s maybe go take a look at that one” or something.

Yeah, but someone is apparently buying Hyundai cars in the US:

„ Today, Hyundai is among the best selling car brands in the US. In 2018, Hyundai-branded vehicles holds 4% of the car market in the US. Their sales in 2010s has been much better than in 2000s. In 2016, the brand sold 768,057, a record for Hyundai.“

Scroll down on this link and you can see the sales for Hyundai in much more detail: https://www.goodcarbadcar.net/hyundai-us-sales-figures/

I’m not saying nobody is buying their vehicles. But is it because of people seeing it on NBA game commercials?

[sashaturiaf]

It’s always interesting to me how these TV deals get done and the TV networks are obviously hoping to make the $$ off advertisements and commercials and such.

I can honestly say I’ve never ever in my life bought something because I saw it on a TV commercial. NBA loves to shove Hyundai/Kia/Genesis down our throat, I truly wonder if there is even one person in the world who bought a Kia or Hyundai at least in part because how NBA games always mention it for advertising.

Idk, maybe just me but I’m always surprised that these big companies pay so much $$ for advertising to these TV networks and sports leagues as if the average American is going to buy their product because of it.

TV ads definitely work. It buys the brand prestige getting associated with the best basketball players in the world, and also allows the brand to create and project their brand image which then directly equals sales.

realGM ads on the other other, I have my doubts over. I never look at that ****, barely notice it's there

[Flash4thewin]

Meh, it's more subtle than that. The primary goal of most advertising is to simply create brand awareness, not necessarily to spur a conscious direct choice to purchase immediately upon viewing.

Not immediately upon viewing but for example on the car ones, like I said NBA has shoved Hyundai down its fans throats for at least 10-12 years now. I’ve bought 3 cars in that span including one last year and never did I remotely consider Hyundai. It’s nothing against the company itself (they make solid vehicles) but it’s not something that interests me.

I can’t speak for everyone so I guess perhaps others do maybe think when it comes time to buy a car “Hey what was that one Hyundai SUV that we keeping seeing the ad for when watching basketball games? Let’s maybe go take a look at that one” or something.

Yeah, but someone is apparently buying Hyundai cars in the US:

„ Today, Hyundai is among the best selling car brands in the US. In 2018, Hyundai-branded vehicles holds 4% of the car market in the US. Their sales in 2010s has been much better than in 2000s. In 2016, the brand sold 768,057, a record for Hyundai.“

Scroll down on this link and you can see the sales for Hyundai in much more detail: https://www.goodcarbadcar.net/hyundai-us-sales-figures/

If one is in the market for an suv, those Hyundai are such a good value and are ranked pretty high. I would personally never get a Toyota or Ford suv over a Hyundai. Just spec out comparable cars and one can see a big difference in what your money gets you.

[Tim Reynolds]

It’s always interesting to me how these TV deals get done and the TV networks are obviously hoping to make the $$ off advertisements and commercials and such.

I can honestly say I’ve never ever in my life bought something because I saw it on a TV commercial. NBA loves to shove Hyundai/Kia/Genesis down our throat, I truly wonder if there is even one person in the world who bought a Kia or Hyundai at least in part because how NBA games always mention it for advertising.

Idk, maybe just me but I’m always surprised that these big companies pay so much $$ for advertising to these TV networks and sports leagues as if the average American is going to buy their product because of it.

TV ads definitely work. It buys the brand prestige getting associated with the best basketball players in the world, and also allows the brand to create and project their brand image which then directly equals sales.

realGM ads on the other other, I have my doubts over. I never look at that ****, barely notice it's there

....wait, there are ads here? That's crazy, I guess Brave browser really does work

[scrabbarista]

It’s always interesting to me how these TV deals get done and the TV networks are obviously hoping to make the $$ off advertisements and commercials and such.

I can honestly say I’ve never ever in my life bought something because I saw it on a TV commercial. NBA loves to shove Hyundai/Kia/Genesis down our throat, I truly wonder if there is even one person in the world who bought a Kia or Hyundai at least in part because how NBA games always mention it for advertising.

Idk, maybe just me but I’m always surprised that these big companies pay so much $$ for advertising to these TV networks and sports leagues as if the average American is going to buy their product because of it.

TV ads definitely work. It buys the brand prestige getting associated with the best basketball players in the world, and also allows the brand to create and project their brand image which then directly equals sales.

realGM ads on the other other, I have my doubts over. I never look at that ****, barely notice it's there

....wait, there are ads here? That's crazy, I guess Brave browser really does work

1 roll per day?!?

[Mamba81p]

Teams are signing stars to huge deals, such as the Jaylen Brown and now today, AD's extensions.

The numbers being reported are assuming 10% salary cap increases every year after the new TV deal is signed.

But now you have a big strike in Hollywood, with screenwriters and actors demanding more share of streaming profits while companies are reporting billions in losses from streaming, such as Disney (owns ESPN) and WBD (owns TNT).

As noted above, Disney is trying to determine how much they want to be in the linear TV business when ESPN is losing viewers and they're laying off a lot of their most expensive on-air talent.

So is Disney going to re-up with a huge deal for the rights to broadcast NBA games?

Same question for WBD and TNT's rights.

The assumption is that if these media companies won't pay the 3X money that NBA is looking for, then others, like NBC and tech companies like Amazon and Apple will pay t he asking price for those rights.

Recently Apple offered a deal for Pac 12 TV rights but the money was apparently paltry, conditional based on how many subscribers would actually pay to watch Pac 12 football and basketball games. So many of the Pac 12 schools have been joining other conferences.

Washington and Oregon just joined the Big 10, even though they will get less TV money than other Big 10 schools, putting them at a competitive disadvantage. But apparently it was still more than any deal the old husk of the Pac 12 could get.

So who knows, maybe the TV sports bubble is popping for every league other than the NFL and the English Premier League.


But sports are the only thing linear TV has which keeps millions of people paying hundreds a month for cable TV. NBA offers bulk of content, 4 times as many games as the NFL and programming for 8-9 months (through the Finals in June) versus 5 months of NFL games and not nearly as many games per week or hours of programming for the networks which have TV rights.

Hmm, maybe those $60 and $70 million a year salaries won't be hit as soon as people think.

The English Premier League and soccer in general in Europe peaked a long time ago(2015 for Premier League) when it comes to domestic tv rights, and that is the biggest source of tv revenue. I am not saying the bubble popped, but they are not growing like NFL, or what NBA is projecting. I am pretty sure NBA can do better than the Premier League. I don't know if it will be 3x of the current deal, but they will not stay put.

[Tim Reynolds]

TV ads definitely work. It buys the brand prestige getting associated with the best basketball players in the world, and also allows the brand to create and project their brand image which then directly equals sales.

realGM ads on the other other, I have my doubts over. I never look at that ****, barely notice it's there

....wait, there are ads here? That's crazy, I guess Brave browser really does work

1 roll per day?!?

You see why I had to quote it

[CP3nthusiast]

It's gonna be so funny to see players get paid a million dollars to sit out games

[wco81]

Now there's talk that Apple may buy ESPN.

Of course the talk had been that Apple would buy all of Disney.

But it could be mostly analyst types just tossing out ideas.

[Buckeye-NBAFan]

Now there's talk that Apple may buy ESPN.

Of course the talk had been that Apple would buy all of Disney.

But it could be mostly analyst types just tossing out ideas.

Apple doesn't make large acquisitions. It's definitely people throwing out ideas to generate clicks and attention.

[wco81]

Now Amazon is supposedly negotiating to make a streaming version of ESPN.

Someone is floating the idea of $20-35 a month just for that.

What are they smoking?

Well ESPN will have the Super Bowl, for the first time in 2027. Also in 2031.

But when NFL and NBA are not playing, there's nothing to watch. They can yak about NFL on First Take and other talk shows during the offseason but nobody is paying $20 or more a month for that and Little League World Series.

Any company investing in ESPN is probably going to pay whatever it takes to secure the NBA deal, because it provides bulk in filling up live sports programming. Probably means they seek to recover their investment by raising revenues, meaning higher prices.

But they're going to have the most expensive streaming service?

[ItsDanger]

The model needs to steer towards pay per view/subscription. For past 30+ years, consumers have been subsidizing all kinds of crappy product on cable/satellite indirectly. Technology has permitted consumers to bypass the traditional business structure. Now its on them to adjust. Today, its much easier to execute a product sale to the end user directly. The resistance is because they got addicted to ripping people off for so long.

[kodo]

Now there's talk that Apple may buy ESPN.

Of course the talk had been that Apple would buy all of Disney.

But it could be mostly analyst types just tossing out ideas.

Apple doesn't make large acquisitions. It's definitely people throwing out ideas to generate clicks and attention.

Yeah throw that in the bin along with Apple buying Kia for the Apple Car. Apple buying LG for the Apple TV. Apple buying Spotify.