The National Basketball Association’s new 11-year, $77 billion media agreement is sparking concern inside National Football League headquarters, according to journalist John Ourand of Puck.
Ourand told Andrew Marchand on a recent podcast that NFL decision-makers are “irritated” by the optics of the deal, not by the NBA’s success itself. NBCUniversal will pay roughly $2.5 billion per season for its portion of the package—slightly more than the network currently spends each year on “Sunday Night Football.”
For a league long regarded as the dominant force in U.S. sports broadcasting revenue, the notion that NBA rights now command a higher annual fee from the same network is reportedly unsettling.
Key terms of the NBA agreement
Partners: ESPN, NBCUniversal, Amazon Prime Video
Length: 11 years
Total value: $77 billion
NBC component: Approximately $2.5 billion per year, including a new “Sunday Night Basketball” window
The timing is notable. The NFL inserted opt-out clauses in its current broadcast contracts that take effect later this decade. Historically, the league has leveraged such provisions to renegotiate for higher rates when it believes its market value is not fully reflected.
With major properties such as the NBA, NFL, Premier League and Major League Baseball all competing for network dollars, broadcasters face escalating long-term commitments. Industry observers suggest those competing priorities could force networks to reassess future spending.
The NBA has secured long-term stability and a significant revenue boost. Behind the scenes, however, its record deal appears to have rattled another sporting giant.
Source: Hoops Wire
