Bill Koenig, the president of global content and media distribution for the NBA, recently stated during an appearance at Sports Business Journal’s Media Innovators Conference that the league will likely pursue a “hybrid” approach for its local sports rights.
Namely, teams would sell the local linear television rights and the league would combine the digital rights into a package it would be able to sell to a streaming company. This follows a similar model to the NHL, which allows viewers to watch various out-of-market games using the NHL Power Play feature with any standard ESPN+ subscription.
While making these remarks, Koening stated that the plan is more of a “longer-term approach” and something in which various digital companies, such as Amazon and Apple, have already demonstrated interest. Moreover, traditional media companies that operate direct-to-consumer services, such as existing rightsholders in The Walt Disney Company and Warner Bros. Discovery, have also expressed interest in such a package.
“They’re not as interested in negotiating team by team when a particular team comes available,” Koenig said. “But if we can deliver scale or deliver a critical mass and maybe even include it as part of a national arrangement we’re negotiating right now, those opportunities are very intriguing.”
The NBA recently reached an agreement with Diamond Sports Group that will keep games on the Bally Sports-branded regional sports networks through the end of the 2023-24 season. After that, the Association will regain control over the 15 local media rights for its teams one year ahead of negotiations for a new media rights deal. Several teams outside of that cluster have unveiled over-the-air broadcast television functionality and direct-to-consumer options as consumers continue to engage in cord-cutting at a hastened rate.
Although the league is in agreement, it is prepared to broadcast games similarly to what Major League Baseball did through its local media department to continue presenting and disseminating regional broadcasts for the San Diego Padres and Arizona Diamondbacks. Diamond Sports Group reportedly expects to retain 10 of the 12 rights packages within Major League Baseball for the 2024 season, an outcome of which the league wants to gain insight as soon as possible.
Koenig underscored the league’s commitment to local television and divulged that it has had talks with broadcast station groups and distributors in the event it forgoes the utilization of regional sports networks.
According to John Ourand of Sports Business Journal, the deal between the NBA and Diamond Sports Group reduces rights fees for 2023-24 by 16% to end contracts in April, something that is pending approval at a hearing that will take place next week.
The league also reportedly has an opt-out should Charter Communications choose to drop Diamond Sports Group in its upcoming carriage negotiations.
