The NBA’s media landscape is undergoing a huge shift next season when the league begins its new national media-rights deal. According to a report from Sports Business Journal, the NBA has extended the Regional Sports Network (RSN) deadlines for local broadcasts.
Tuesday, April 1 was the deadline for five NBA teams to extend their deals with Main Street Media, the parent company of FanDuel Sports Networks, per the report. The Atlanta Hawks, Cleveland Cavaliers, Minnesota Timberwolves, Miami Heat, and Milwaukee Bucks all have expiring deals with FanDuel Sports Network and were originally supposed to decide on extending their deals in December 2024, but that deadline was extended to April 1 in hopes that the league would find a national partner for its RSNs.
According to the SBJ report, those five teams could secure their local deals later this summer in the offseason. This could see them transition to free local TV like the Phoenix Suns, New Orleans Pelicans, Utah Jazz, and others have in recent years. For local fans, this removes games from the paywall of a traditional TV provider and allows cord cutters to watch NBA games free with an antenna. Additionally, teams that have successfully transitioned offer direct-to-consumer streaming services.
However, with free TV, this could be a financial loss compared to traditional pay-TV distribution. The Utah Jazz reportedly lost nearly 50% of their revenue after switching to free local OTA broadcasts and their direct-to-consumer streaming platform Jazz+. For instance, Jazz owner Ryan Smith said the team reaches about 6.3 million people in their broadcast territory, including 31,000 Jazz+ subscribers, which is a huge increase from the 760,000 households the team reached via pay-TV distribution.
“You couldn’t pay me enough money to go back to the old model,” Smith told CNBC. “You have to zoom out a little bit beyond just the RSN revenue stream,” he also said. “Our team has about seven different revenue streams, and the other six are enhanced by broader distribution of our games. The more people watch, the more people come to games, the more we sell in concessions, the more money we bring in with sponsorships.”
The Jazz have generated about $16 million via over-the-air and direct-to-consumer, per the SBJ report. Sources told SBJ that the five teams who are on expiring deals with FanDuel Sports Network generate a considerable amount more than what Utah’s template currently brings in:
- Atlanta Hawks: $32 million
- Cleveland Cavaliers: $35 million
- Miami Heat: $55 million (the most of any team on FanDuel Sports Networks)
- Minnesota Timberwolves: $24 million
- Milwaukee Bucks: $24 million
Of those five franchises, four are more than likely to return to FanDuel Sports Network next season and extend their deals, according to the report. The future of the Cavs on FanDuel Sports Network Ohio could be in doubt after the team launched the OTA RSN Rock Entertainment Sports Network (RESN). The revenue from an NBA national RSN deal could push the Cavs to transition to free TV, as it would make up for some of the losses from their current deal. However, if the NBA doesn’t secure a national streaming deal for its RSNs, the Cavs could join the other franchises and opt in another year on FanDuel Sports Network.
With the upcoming extensions, FanDuel Sports Networks originally wanted the five teams to renew for two seasons, per the report. However, with the league searching for a national RSN streaming deal, the teams prefer the flexibility of opting in for one year.
From the SBJ report:
While the teams all wait — impatiently or not — sources said the league has again reminded team executives that even if their Main Street rights fees plummet next season, the incoming national media rights money ($142M going to each franchise starting in 2026, with 7% annual increases the ensuing 10 years) will cushion any immediate financial blows.
“We’re getting more money nationally, so we’re willing to take the hit locally,” one team executive said a month ago.
In recent years, many MLB, NHL, and NBA fans have taken issue with how difficult it is to stream their local team. DIRECTV STREAM and Fubo carry most RSNs in their channel lineups. Hulu + Live TV and YouTube TV offer a few, but over the past few years, more RSNs have given fans DTC streaming options. ESPN+, Roku, and Apple TV+ are a few notable platforms that offer sports and could boost their subscriber count by adding local NBA broadcasts to their portfolio.
FanDuel Sports Network has paved a way with its direct-to-consumer app and its distribution as a Prime Video add-on. As consumer habits evolve with more cord cutters preferring skinnier bundles, Fubo offers FanDuel Sports Network as a standalone and $5 savings on the first month. With pay-TV providers such as Comcast putting RSNs in higher tier packages or dropping FanDuel Sports Network Southwest, these strategic moves give viewers affordable alternatives to watch their teams play.
Regional sports media could look completely different in a couple of years. Not only are NBA teams switching to free TV, but the MLB is also looking to sell its local TV rights in 2028, which will make games more accessible for cord cutters everywhere.
Credit: SBJ