October 24, 2023

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It’s hard to think of an NBA season in recent memory that begins with so many tantalizing questions on and off the court. How will LeBron James hold up in his 21st season? How will the new pairing of Giannis Antetokounmpo and Damian Lillard fare? Is San Antonio rookie sensation Victor Wembanyama for real? What will happen with the league’s next set of national media rights — and what will become of the NBA’s local rights amid Diamond Sports Group’s bankruptcy?

We break down many of the league’s top business storylines in this special takeover edition of the AM newsletter — and speak with Mark Tatum, the league’s deputy commissioner, on our podcast.

— Eric Fisher [[link removed]]

NBA Gets Creative In Quest For Potential $75B Media Rights Deal [[link removed]]

Kirby Lee-USA TODAY Sports

The NBA enters the 2023-24 season with the clear intent of showcasing itself to potential broadcast partners bidding [[link removed]] for media rights next summer.

Disney and Warner Bros. Discovery hold the NBA’s U.S. media rights for two more seasons, but the league can begin negotiating with other companies after this season ends. Theoretically, the NBA could enter the 2024-25 season with new deals in place a year before they would start in the fall of 2025.

A key league initiative this season will be making sure its best players are playing as often as possible — especially in marquee matchups. Under more stringent rules [[link removed]], the NBA’s 30 teams can be fined more than $1 million for resting “star” players in certain scenarios.

Another key element that could add media value this year is the NBA’s new in-season tournament. If the games provide enough drama, the tournament could be sold [[link removed]] as its own broadcast package in the next set of deals.

Streamers In The Mix

In an effort to expand its revenue generation, the NBA may look to sell more packages consisting of fewer games. That could give incumbent partners Disney and WBD — who air games on ESPN/ABC and TNT, respectively — the chance to retain some rights while also bringing in new broadcasters.

Interested parties reportedly include [[link removed]] Comcast-owned NBC and Amazon’s Prime Video. Sources told [[link removed]] Front Office Sports that Amazon wants to create an exclusive night of streaming NBA games similar to what the NFL currently has with “Thursday Night Football.”

Other streamers like Apple and Google’s YouTube could look to get in the mix, too.

PODCAST

🎙️ They Said What?

“The next big thing we need to get done before we think about expansion is our media rights agreement … but expansion is sort of the manifest destiny of organizations.”

— Mark Tatum, the NBA’s deputy commissioner, on when the league is planning to expand. To hear more from Tatum about all things NBA, check out the latest episode of Front Office Sports Today.

🎧 Listen and subscribe on Apple [[link removed]], Google [[link removed]], and Spotify [[link removed]].

Spurs Set For New Era In Limelight With Wemby [[link removed]]

Scott Wachter-USA TODAY Sports

The San Antonio Spurs’ new era begins in earnest this week with the regular-season debut of rookie phenom Victor Wembanyama.

Wembanyama’s 7-foot, 3.5-inch frame and sleek, guard-like skills have instantly transformed his franchise’s expectations on the court — and triggered a similarly swift reversal [[link removed]] of fortune in terms of media exposure and ticket sales.

The team will be on national TV at least 19 times this season, up from just four times last year, thanks in large part to the presence of this year’s top overall draft pick. The Spurs also received 4,000 new season-ticket deposits and generated the largest number of overall season-ticket accounts in franchise history.

And after finishing 25th in NBA attendance last year, a return to the top 10 this year is likely, thanks to their new star.

Spurs coach Gregg Popovich, who previously guided top-overall draft picks David Robinson and Tim Duncan to Hall of Fame careers, said the pressure on Wembanyama is far greater due to social media — but isn’t worried. “He’s got character. He has got a sense of humor. He’s intelligent. He knows how to handle [the pressure].”

The new season also brings the opening of the Spurs’ new $500 million practice center and mixed-use campus, the Rock at La Cantera, as well as the increasing [[link removed]] exploration [[link removed]] of a new downtown venue when the current lease for Frost Bank Center expires in 2032.

Dealing With the Spotlight

The Spurs are looking to further leverage this pivotal moment in team history by hiring a full-time behavioral economist, Raghavi Nimmala.

“We’ve seen this huge influx of fans, and we now have more new [tickets] accounts than we did old and renewing accounts. And for the first time, more than 50% of the new accounts are Gen Z and millennials. So everything we’ve learned to this point about how to treat a season-ticket holder is out the window,” Jordan Kolosey, Spurs VP of business strategy innovation, told Front Office Sports.

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NBA Focused On Seattle, Las Vegas When It Comes To Expansion [[link removed]]

Joe Nicholson-USA TODAY Sports

It’s no secret that the NBA wants to expand beyond its current 30 franchises sooner than later.

During last season’s NBA Finals, league commissioner Adam Silver specifically mentioned [[link removed]] Las Vegas and Seattle as two cities — among others — under consideration for expansion teams. He also said the NBA would shift its focus to expansion once its next set of media rights deals were completed — which could be as soon as mid-2024.

Las Vegas has added NFL, NHL, and WNBA teams in recent years as it becomes an epicenter for professional sports. The city is almost assuredly getting an MLB team in the A’s, as well, and next month, Formula 1 will race for the first time in Sin City. It’s not surprising that the NBA would want in on such a hot market.

Despite Las Vegas already boasting T-Mobile Arena — home to the Golden Knights and many UFC events — the Oak View Group hopes to lead a $10 billion development [[link removed]] with an NBA arena as its centerpiece.

From an ownership perspective, LeBron James has long expressed his desire to be part of a Las Vegas ownership group, but may face stiff competition [[link removed]] from Shaquille O’Neal, who says he wants a potential Vegas team all to himself.

In the Northwest, Seattle is more than ready to welcome a return of the NBA.

A second preseason game [[link removed]] in Seattle in as many years is stoking speculation that the league is ready for a franchise again after the SuperSonics moved to Oklahoma City in 2008 and became the Thunder. The newly developed Climate Pledge Arena, currently home of the NHL’s Kraken and WNBA’s Storm, would be a logical fit for an expansion NBA team.

Beyond The Border

While league expansion is a priority for the league, so is growing internationally.

The Dallas Mavericks and Minnesota Timberwolves tipped off the preseason in Abu Dhabi earlier this month as part of a multiyear deal [[link removed]] with the UAE. The Atlanta Hawks and Orlando Magic will play a regular-season game [[link removed]] in Mexico City on Nov. 9 — the NBA’s 32nd game in Mexico since 1992.

Also up for consideration: NBA deputy commissioner Mark Tatum says the league would consider [[link removed]] playing a regular-season game at Santiago Bernabéu Stadium, home of soccer giants Real Madrid.

NBA Sees $100M Annual Player Salaries In Its Future [[link removed]]

Benny Sieu-USA TODAY Sports

The NBA already boasts the largest player salaries in U.S. pro team sports — an average [[link removed]] of nearly $10.8 million — but is now looking at the next major milestone: $100 million annual player salaries.

LeBron James and Stephen Curry each already exceed [[link removed]] $100 million in yearly earnings when factoring in endorsements and other off-court activities.

But amid continually escalating salary caps and on the cusp [[link removed]] of riches from a new set of media rights contracts, the league is now less than a decade away from making nine-figure base compensation a reality.

The current labor deal between the NBA and National Basketball Players Association limits the annual jump in the salary cap to 10% in order to smooth out the influx of new revenue — an effort to avoid issues from the cap’s 34% bump in 2016 following the last media rights deals.

Yet with projected [[link removed]] increases to the cap and existing rules surrounding supermax contracts, NBA players will exceed $80 million base salary as soon as 2029, and potentially reach $100 million three years after that.

It was only in 1996 that NBA players began to sign $100 million contracts covering multiple seasons, with Washington Bullets star Juwan Howard becoming the first to do so in a seven-year pact.

In the meantime, new salary thresholds continue to be set with Jaylen Brown’s historic five-year deal [[link removed]] this past summer with Boston worth $304 million, and Damian Lillard’s contract extension with Milwaukee that currently projects him to become the NBA’s first player above $60 million in the 2026-27 season.

Lillard’s status as a salary trailblazer, however, could be challenged by his Bucks teammate, two-time league MVP Giannis Antetokounmpo, who signed a blockbuster three-year contract extension on Tuesday that could be worth as much as $186 million depending on the league’s future salary cap.

Conversation Starters The Clippers’ future home, the $1.2 billion Intuit Dome, will feature [[link removed]] a 360-degree video board, power at every seat, and more. The Charlotte Hornets will begin the season with a new patch [[link removed]] on their jerseys — the logo for MrBeast’s snack brand Feastables. If the NBA expands [[link removed]] to Las Vegas, Shaquille O’Neal said he wants in — and doesn’t want to share. Front Office Sports Today Lots On Line For NBA

The NBA is showcasing its product as it seeks around $75 billion in its next media rights deals. We explore the impact of the midseason tournament, load management, and the gradual shift from cable to streaming as the league tips off on a hugely consequential season.

Host Owen Poindexter talks with Front Office Sports senior writer Michael McCarthy and NBA deputy commissioner Mark Tatum on a jam-packed episode [[link removed]].

Listen and subscribe on Apple [[link removed]], Google [[link removed]], and Spotify [[link removed]].

More On The NBA Two-Time WNBA Champ Becky Hammon Returns To NBA Coverage [[link removed]]by Michael McCarthy [[link removed]]ESPN is also adding four-time NBA champion Andre Iguodala to its broadcast roster. Doris Burke Begins Historic NBA Broadcast Role [[link removed]]by Michael McCarthy [[link removed]]After an offseason shakeup, Doris Burke begins her role as ESPN’s first female No. 1 TV analyst for the NBA. The 25 Highest-Paid NBA Players for 2023-24 [[link removed]]by Doug Greenberg [[link removed]]Stephen Curry tops the list for a third year in a row. Iguodala To Run $200M Fund After Retiring From NBA [[link removed]]by David Rumsey [[link removed]]The 19-year NBA veteran is calling it a career. Joel Embiid Will Reportedly Become Skechers’ First NBA Athlete [[link removed]]by Doug Greenberg [[link removed]]Another win for a non-traditional company in the pro sports space. Question Of The Day

How much does your favorite bottle of liquor cost?

Under $50 [[link removed]] $51 - $75 [[link removed]] $76 - $100 [[link removed]] $101+ [[link removed]] N/A [[link removed]]

Monday’s Answer

35% of respondents rent a car 1-2 times a year, 17% rent a car 3-4 times a year, and 20% rent a car 5+ times a year.

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