NBCUniversal’s return to the NBA is sparking concern inside the company, where top executives are questioning whether an 11-year, $27 billion media rights agreement can ever pay for itself, The Wall Street Journal reported.
The deal, which begins with the 2025-26 season, requires roughly $2.5 billion in annual rights fees—surpassing what NBC now spends on its highly prized “Sunday Night Football” package that also includes future Super Bowls.
Several senior leaders told the newspaper they are unsure the numbers work. Research analyst Robert Fishman of MoffettNathanson echoed that view, calling it “hard to make the math work on generating any substantial returns.”
Internal projections anticipate losses of between $500 million and $1.4 billion during the agreement’s early years. “All of these deals lose money discretely,” NBCUniversal executive Dave Pietrycha said, acknowledging a steep initial deficit.
Comcast co-CEO Mike Cavanagh defended the purchase in a company memo, arguing that “big swings” are sometimes necessary for long-term growth. Executives believe expanded NBA coverage will strengthen the Peacock streaming service, boost affiliate fees and lift advertising rates. NBC is now seeking about $130,000 for a 30-second NBA spot, compared with roughly $50,000 when TNT held the rights.
Skeptics, however, question whether streaming gains can fill the gap, noting that many sports viewers already subscribe to Peacock for the Olympics, Premier League soccer and NFL games. To widen reach, NBC reportedly intends to launch a new cable channel that would carry live NBA contests previously slated only for Peacock.
For now, company insiders say the network is walking “a fine line between a bold investment and an expensive mistake,” as NBC tries to re-establish a major presence in professional basketball after a two-decade absence.
Source: Hoops Wire
