The NBA’s next major business move may have nothing to do with free agency or trades.
According to ESPN’s Brian Windhorst, league officials are targeting 2027 as the year to consolidate most local television rights under a single media partner as regional sports network revenue continues to decline.
The issue has become one of the league’s biggest financial concerns.
Although the NBA’s salary cap increased this offseason, it rose by just 6.7% — well below the maximum 10% annual increase allowed under the league’s current collective bargaining agreement with the players’ union.
A shorter postseason contributed to the smaller increase, but Windhorst reported that falling local television revenue remains the larger long-term factor.
The NBA helped offset those losses by signing 11-year national media rights agreements worth more than $77 billion with ESPN, NBC and Amazon two years ago. Those deals dramatically increased national television revenue and prevented a more significant financial slowdown.
Still, local TV money continues to shrink.
According to ESPN, even the Knicks accepted a 28% reduction in payments from MSG Networks last year, resulting in roughly $41 million less annual local television revenue. Similar declines are taking place around the league.
League officials reportedly believe the best long-term solution is to bundle most local media rights together once the majority of current agreements expire in 2027.
“It’s one of the most significant financial things going on in the league right now,” one team president told ESPN. “It’s played at least some role in moving forward with expansion.”
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