April 22, 2024

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The quest for the NBA’s next set of media rights deals may take center stage during the postseason. … Ryan Smith’s NHL deal makes him a true powerbroker in the sports industry. … Pablo Torre chats with FOS about LeBron James and the Knicks. … Nike is laying off more employees. … And the new format of the FA Cup is drawing some ire across the pond.

— Eric Fisher [[link removed]] and David Rumsey [[link removed]]

NBA’s Media Rights Are Set to Expire: Who’s Got Next? [[link removed]]

Ron Chenoy-USA TODAY Sports

The NBA playoffs are underway, but as teams battle on the court, the league is turning its attention toward formal negotiations for its next set of media rights deals. Monday marks the end of the NBA’s exclusive negotiating window with the parent companies of incumbent broadcasters ESPN and TNT, meaning that come midnight, other bidders can officially present offers for new deals that will start at the beginning of the 2025–26 season.

Through its nine-year, $24 billion deals with ESPN and TNT, the NBA has been bringing in almost $2.7 billion annually. The league just had its most-watched regular season in four years, averaging an audience of 1.04 million across ABC, ESPN, TNT, and NBA TV, a 1% increase from last season. So, what will the next deals yield? In 2021, CNBC reported [[link removed]] that the NBA would be seeking $75 billion, but league officials pushed back on that number privately. Deals that total even $50 billion—depending on their length—would see the NBA double its current intake.

The Contenders

Here’s what we know so far about how things could shake out:

Disney: ESPN losing NBA rights altogether would be the biggest shock of all, and it seems the most unlikely outcome. But with the potential of the league ending up with three or even four partners, the Worldwide Leader likely won’t have as many games as it does now, splitting things up almost evenly with TNT. Warner Bros. Discovery: David Zaslav, the company’s CEO, has publicly said [[link removed]] WBD doesn’t need the NBA to survive, but it would still be surprising if the newly-branded TNT Sports didn’t keep at least some rights, especially given the launch [[link removed]] of a new live sports tier for the Max streaming service. Amazon: Prime Video already has multiple international NBA deals [[link removed]], and the company’s head of sports, Jay Marine, has gone on the record about its pursuit of U.S. sport rights, saying [[link removed]] the streamer wants playoff games, too. Adding the NBA would complement Amazon’s live sports portfolio, which already includes the NFL, NWSL, and WNBA. NBC: The network last had league rights in 2002, but the old NBA on NBC theme song [[link removed].] still brings fond memories for many fans that enjoyed it during the Michael Jordan-Bulls era. In an interview with Front Office Sports in February, Brian Roberts, chairman and CEO of NBC parent company Comcast, said [[link removed]] simply, “We’re always interested in acquiring great content, and the NBA certainly offers great content.” The Sleepers

Beyond the big four, options are “fairly limited,” says veteran sports media expert Ed Desser, a former NBA executive. But some streamers are still catching his eye.

Netflix: The streaming giant was once linked [[link removed]] to potential interest around the NBA’s in-season tournament (now rebranded as the Emirates NBA Cup), and Desser won’t rule out a Netflix bid “in light of their growth and interest in sports and sports-like content.” Netflix agreed to a 10-year, $5 billion deal [[link removed]] with the WWE and has produced multiple one-off events across golf, tennis, and boxing. Apple: The company has been clear about its preferences to partner with leagues when it can acquire rights on a global scale, not just a single package in one market. Apple won’t get 100% of rights here, like it does in its MLS deal, but what about outside the U.S.? NBA deputy commissioner Mark Tatum recently told FOS that the league “lined up all of our international deals to be able to go to market for a streaming platform, with a truly global proposition.” And Desser says, “You cannot rule out the possibility of a surprise party like Apple.” Google: Desser thinks that any involvement with YouTube would be around NBA League Pass, similar to the deal for NFL Sunday Ticket.

No firm timetable has been released for getting new deals done, but conventional wisdom suggests the league would want things wrapped up before next season starts, in October.

Ryan Smith’s Ascension in Sports Ownership: Four Teams in Five Years [[link removed]]

Jeffrey Swinger-USA TODAY Sports

Last week’s deal to take an NHL team out of Arizona and into Utah brought a resolution to one of the messiest franchise situations in the league. It also solidified Ryan Smith’s sports ownership portfolio as one of the fastest-growing in the country. Take a look at his last five years:

2020: Buys the NBA’s Utah Jazz for $1.66 billion 2022: Acquires MLS club Real Salt Lake with David Blitzer for roughly $400 million 2023: Revives the NWSL’s Utah Royals franchise for $2 million, again with Blitzer 2024: Purchases yet-to-be-renamed NHL team for $1.2 billion

“When these things come along, you don’t blink,” Smith said Friday during a press conference in Salt Lake City with NHL commissioner Gary Bettman. The 45-year-old billionaire’s sports interests all fall under his company Smith Entertainment Group, which is already starting to stack up nicely against rival heavyweights in the industry, like Kroenke Sports & Entertainment (Rams, Nuggets, Avalanche, Rapids) and Fenway Sports Group (Red Sox, Penguins, Liverpool).

Money Well Spent

In 2002, Smith co-founded the software technology outfit Qualtrics with his brother, father, and one other business partner. That company sold in 2019 for $8 billion, and Smith wasted no time turning his attention to sports, buying the Jazz less than 24 months later.

Smith spent at least $3 billion for his share of the four sports teams he owns all or part of, and already they’re worth roughly $5.5 billion (based on Forbes’s valuations for the Jazz and Real Salt Lake, and recent comparable team sales [[link removed]] within the NWSL).

Could There Be More?

Salt Lake City has been talked about as a potential option for MLB expansion, and the city was considered as a temporary landing spot for the A’s before they settled [[link removed]] on playing in Sacramento while they wait for a ballpark to be built in Las Vegas. The WNBA is expanding too, but last week Smith admitted [[link removed]] he “has a full plate right now,” even though he’s a fan of the W and speaks with commissioner Cathy Englebert often.

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FRONT OFFICE SPORTS TODAY How a Secret LeBron Recruitment Video Explains the Knicks

Brad Penner-USA TODAY Sports

The Knicks, the No. 2 seed in the East, are up 1-0 in their first-round playoff series against the 76ers—but it hasn’t always been this promising. New York made the postseason just twice in the last decade and before that flopped in an attempt to sign LeBron James, in 2010. That failed effort was long rumored to have included a Sopranos-themed recruitment pitch—and Pablo Torre’s podcast recently uncovered the video. Torre joins the show to discuss how that pivotal moment influenced the team’s recent success.

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

EVENTS

In recognition of Earth Day, Front Office Sports will be hosting conversations with a lineup of visionaries committed to eco-friendly initiatives and investments across the sports landscape.

Join us today at 1 p.m. ET for Future of Sports: Sustainability [[link removed]].

ONE BIG FIG Air Out

Kirby Lee-USA TODAY Sports

740

Total number of Nike employees to be laid off [[link removed]] by June in an ongoing wave of cost cutting by the athletic footwear and apparel giant. In a filing [[link removed]] made Friday with the state of Oregon, Nike referenced a “second phase of impacts” that is forthcoming, part of a broader $2 billion cost-cutting program [[link removed]] the company is pursuing over the next three years. A prior round of reductions occurred [[link removed]] in February. It’s the latest hit for a company that has faced a series of issues elsewhere, including its much-criticized [[link removed]] MLB uniforms, shortages [[link removed]] of Caitlin Clark jerseys, and a broader malaise [[link removed]] across the category.

LOUD AND CLEAR A New Era

Vincent Carchietta-USA TODAY Sports

“It’s very sad.”

—Manchester United manager Erik ten Hag, speaking [[link removed]] about the removal of replay matches during the FA Cup. Smaller clubs have seen big financial windfalls when they secure draws on the road against notable opponents during the domestic competition in the U.K. and in turn get to host said clubs at home in front of their local fans. Ties at the end of regulation in the FA Cup must now be decided that day, either through extra-time or penalty kicks.

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For Chop Robinson, his Dreammate is his father, John Robinson.

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Conversation Starters Eagles quarterback Jalen Hurts has donated [[link removed]] $200,000 to the School District of Philadelphia to purchase more than 300 air conditioning units for 10 schools. Nelly Korda continues to rewrite the LPGA Tour record books. She won her record-tying fifth straight tournament on Sunday—her second major title. Check out [[link removed]]Nike’s ad to recognize the moment. After seven years away from baseball due to injuries, including a torn UCL, shoulder surgery, and a broken back, Cam Booser made his unexpected MLB debut [[link removed]] for the Red Sox at 31 years old and helped Boston to an 8-1 win. Editors’ Picks Everything You Need To Know About the Legal Attempts To Kill the ACC [[link removed]]by Amanda Christovich [[link removed]]Four lawsuits involving the conference, Clemson, and FSU could determine the future. A Bare-Knuckle Fighter Won His Pro Debut. The Far Right Scored a Marketing Win [[link removed]]by Sam Eagan [[link removed]]With Proud Boys sponsoring him, experts say extremist groups will use his success to elevate their ideologies and recruit new believers. Hearings Have Concluded in the Pivotal USC Athlete Employment Case. What’s Next? [[link removed]]by Amanda Christovich [[link removed]]The potentially landmark labor case could end the NCAA amateurism model. Advertise [[link removed]] Awards [[link removed]] Learning [[link removed]] Video [[link removed]] Podcast [[link removed]] Sports Careers [[link removed]] Written by David Rumsey [[link removed]], Eric Fisher [[link removed]] Edited by Matthew Tabeek [[link removed]], Catherine Chen [[link removed]]

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