After the MLS and Apple TV agreed on a $2.5 billion broadcast deal earlier this year, it left the NBA as the last remaining of the major sports leagues in the USA to be in line for a new TV deal. It is on the horizon too, as the current 9-year agreement with ESPN and TNT is set to expire after the 2024-25 season.
The current agreement worth $24 billion, was reached back in 2014 and it commenced from the 2016-17 season, so we can expect some updates on a new deal not too long into the future. It was reported previously that the NBA is looking at its new deal to be worth around $75 billion, almost triple the previous amount, which is a hefty price. ESPN is, of course, owned by Disney, and CEO Bob Chapek recently spoke on the upcoming deal and he stated they are interested in continuing this relationship.
via Deadline:
“We are interested in a renewal with the NBA,” said CEO Bob Chapek today after the company issued its surprisingly strong quarterly earnings reports.
Whispers are that the league is looking at an up-to-$75 billion payout from potential bidders. While saying today that Disney is “still bullish on sports,” Chapek would not be drawn deeper into discussions on a new deal. “A continued relationship with the NBA would be something that is really attractive to us,” was about all that the CEO would add.
“We are continually enamored of the power of sports,” Chapek also said on Wednesday’s expectations-defying earnings call… but, as usual, the CEO hedged his bets in his forward statement. Chapek noted that the company’s ESPN plans will see it “pre-actively prepare without prematurely disrupting the cash flow we get from the linear networks.”
It is understandable that they are not committing to anything yet though, especially when you consider that $75 billion number being floated around. Ratings for this past season also went up, which has put the NBA in a position to negotiate a big deal.
These broadcast deals, in general, tend to go very high nowadays anyway, as there is a lot of competition and if Disney does give it up here, someone else will readily pick it up.
