MCU and ESPN Owners Disney, Whose Stocks Went Up 6% Despite Reporting an Operating Loss, Eyeing a Multi-Billion Dollar Deal With the NBA

The NBA is undoubtedly one of the biggest sports leagues in the world. It is easily the best basketball league in the world with the best talent from around the globe. While the league has seen decreased viewership over the past few years due to various reasons, it still brings in a lot of money and is one of the most profitable leagues around the world.

Adam Silver, the commissioner of the NBA, will be looking for another big payout after their television deal with the Walt Disney-owned ESPN expires. In the current deal, which was announced in 2016 and will run through the 2024-25 season, Disney will pay out around $2.5 billion per year.

Disney’s announcement of its successful third-quarter earnings report surprised a lot of people. Despite incurring heavy operating losses in the fiscal third quarter, stocks went up 6% in after-hours trading. Disney CEO, Bob Chapek said, “We are interested in a renewal with the NBA; we will only do it if it is accretive to shareholder value.”

However, the renewal hinges on multiple factors. The NBA is expectedly looking to significantly increase the current $24 billion deal. According to reports, they are looking for a $75 billion buyout.

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Meanwhile, Disney will only do it if there are significant benefits for the conglomerate. Recently, Disney pulled out of negotiations for the renewal of the Big Ten media rights despite being one of the longest sports media relationships.

The NBA is the last remaining major U.S. men’s league in line for new media rights

After major deals for the NFL, MLB, and MLS, the NBA is hoping to get a massive payout. Since the NBA’s last renewal, there have been various technological updates. Streaming services have taken up a huge role in the current media market.

The NBA faced historical low viewership numbers during the NBA Finals in 2020. However, there was a slight resurgence due to the 2022 Finals featuring Stephen Curry and the Golden State Warriors.

Meanwhile, Disney earned a revenue of $21.5 billion in the third fiscal quarter in large part due to the parks, experience, and consumer products. The increased number of subscribers for their streaming services may prove to be a major point for the upcoming discussions with the NBA.

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Do you think the NBA will renew with Disney? Let us know in the comments below.