Rich Paul, LeBron James agent, is one of the most influential names in sports despite never playing a single professional game.
Paul is the CEO of the agency Klutch Sports Group which represents many top NBA players like Draymond Green, Anthony Davis, and De'Aaron Fox, and has built a reputation for its clients getting top dollar from their teams.
But there are always new factors that could change the dynamics between professional athletes and their teams especially in an evolving sports landscape that is quickly seeing more direct-to-consumer products as regional sports networks continue to struggle.
In a text exchange with Semafor's Max Tani, Paul explained why he thinks these new services will actually benefit players.
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"This disruption is about player empowerment and player empowerment is about options," Paul said in a text to Semafor.
Paul was unfazed by the rhetoric that player empowerment was losing steam because just star guard Damian Lillard was unable to influence a trade from the Portland Trailblazers to his team of choice, the Miami Heat. He was traded to the the Milwaukee Bucks on Sept. 28.
But Paul said that streaming will mean that broadcasting companies will be dependent on players even more.
"Just imagine how things change when each team is going DTC and competing for subscribers. You don't think players gonna have more power if the future is about competing for eyeballs? How much more do you need a LeBron James or Draymond Green when you're playing for subs? Not to mention working with them on other content."
Paul's point is already been partially validated by Apple and their $250 million per year deal with Major League Soccer. Apple has reportedly had a very successful first year with MLS, but it's likely due to the buzz driven by its acquisition of global soccer superstar Lionel Messi.
The NBA's current media rights deal with ABC/ESPN (DIS) -) and TNT (WBD) -) ends after the 2024-25 season. There is an expectation that major tech companies like Apple and Amazon will be bidding for at least a chunk of the rights to put onto their streaming platforms, while ESPN execs have already expressed that the company will be moving to DTC fully very soon.
Meanwhile, regional networks are struggling, most prominently seen through the Diamond Sports, which runs the Bally Sports networks, filling for bankruptcy earlier this year. Some teams have already started their own streaming platforms to watch games including the New York Knicks and the Utah Jazz.
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