$75 Billion Worth Trouble Knocks on Adam Silver’s NBA

The current landscape of media consumption has challenged the hegemony of various platforms. Of them all, due to the internet boom, cable TV has lost its place. Therefore, regional television networks are having trouble surviving in the market. With NBA, ESPN’s cable TV revenue has taken enormous hits and as the presenter of the NBA finals, their broadcasting future looks glum. Disney, which owns ESPN, has already laid off a handful of media stalwarts and may potentially run the operations in the most minimalist ways.

In this wake, where will Adam Silver head to for greener pastures? How will the NBA sell its media rights? A lot is on the line once the broadcasting rights are distributed again.

What decision will Adam Silver take?

Silver has been a major part of media rights negotiations for a long time now. He was a part of the digital media deal with Turner Broadcasting. However, things have changed since then. TV ratings have fallen off big-time and the internet is outpacing the need for cable.

Therefore, picking a media rights partner is no easy endeavor. The contracts for ESPN and Turner are going to expire after the 2024-25 season. But, the time to lay groundwork has begun already.

On this subject, Joe Pompliano’s questions are indeed relevant. As an investor and an analyst of NBA economics, he brings much-needed input. On his The Joe Pomp Show, the business guru delved into the queries he has regarding the future of the league. He emphasizes the NBA media rights and his following questions intertwine with this concern.

He stated, “Viewership for the NBA is still below the Michael Jordan year. Superstars have been sitting 35% of Regular Season games on average due to load management. The league is reportedly having a struggle selling its new media rights package for a reported 75 billion dollars. So what does the future for the NBA look like? Should fans be concerned with the regional networks going bankrupt? Will player salaries start to decline? What is going to happen to team valuation?”

While these questions may look different, they are woven by a common thread.

The importance of the new broadcasting deal

Media consumption has also changed in the sense that it is just more than about the game. Players are engaging in podcasting and have created a strong partnership. Numerous former players are buying into this scheme, so these factors are something that cable can’t negotiate. While the NBA League Pass has gained immense popularity, regional broadcasting rights are a crucial affair. There is still a strong audience that loves to catch the action on cable TV sets. 

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People are hooked on mobile phones more than ever. Therefore, the next media rights will have to factor in the worldwide reach. In this case, Apple TV has emerged as a contender after grabbing the MLS rights. But Comcast can be a strong contender considering its regional hold.

In what direction will media rights head? At any rate, Adam Silver has his hands full.

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