The NBA Finals tip off tomorrow, but behind the scenes, the league is closing in on its next media rights deal.
According to a report by The Wall Street Journal, the NBA is "closing in" on a media rights deal with NBC (CMCSA) , ESPN (DIS) , and Amazon (AMZN) worth $76 billion over 11 years. This would set the annual revenue at around $6.9 billion annually, which is about two and half times the annual revenue it received for its last deal.
It's current deal with ESPN and Warner Bros. Discovery (WBD) was a nine-year contract that expires after next season.
Related: Charles Barkley has 'two important questions' to ask ESPN, Amazon and NBC
Top sports media reporters from Puck, The Athletic, CNBC, and WSJ have all reported on the likelihood of the trio of companies securing a deal with the NBA over the last few weeks which would see WBD completely lose the NBA.
NBC is offering the league $2.5 billion annually, an increase over the $2.2 billion the NBA reportedly rejected from WBD. With NBC, the NBA also gets an over-the-air broadcaster that WBD just can't offer the league right now. (WBD is reportedly interested in acquiring CBS from Paramount Global, but that opportunity isn't set in stone in time for this NBA rights negotiation.)
The return on the NBA on NBC for the first time since 2002 will bring nostalgia to fans missing the '90s flare of the network, including the "Roundball Rock" theme song that fans to this day associate with the NBA.
But there is one glaring downside for consumers should the NBA move back to NBC.
The inclusion of NBA games on NBC's streaming platform Peacock is a key part of the deal. Peacock is slated to air about half of the approximately 100 games that NBC is going to get in the deal.
Related: The NFL has some bad news for anyone who hated Peacock's streaming-only playoff game
NBA games exclusively on streaming are inevitable with the inclusion of Amazon's Prime Video in this new media rights deal, but the addition of Peacock will spread the games to even more streaming platforms.
More NBA media rights:
- Warner Bros. Discovery is in trouble after Comcast offers NBA a massive deal
- Charles Barkley calls WBD execs 'clowns' amid NBA media rights negotiations
- NBA looks poised to come to streaming after reported framework deal with Amazon
As frustrating as that may be for sports fans, the tactic has worked as both Prime Video and Peacock have seen record-breaking subscriber additions driven by the NFL.
But with Peacock adding the NBA to a portfolio that already has the NFL, WWE, English Premier League, and the Olympics, the subscription price is also expected to rise per the WSJ.
That seems to be on top of the subscription price increase Peacock is conducting beginning July 18 as its ad-supported plan is going from $5.99 per month to $7.99 while its ad-free plan is jumping from $11.99 to $13.99.
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