ZWF: The NBA is about to make bank
Zander's Weekend Facts #117: Sunday, May 5, 2024
Inside this week’s edition of Zander’s Weekend Facts, the NBA is reportedly set to agree to a massive new media rights deal, and a look at what Zander’s been reading this past week. Plus, a compilation of the top headlines you need to know about from the last seven days.
Also, go listen to the latest episodes of the Zander’s Facts Podcast! Episode 137 features a preview of the NBA Playoffs with Zander’s Facts senior NBA analyst Hill Billy. Download the Zander’s Facts podcast wherever you get your podcasts!
Here are Zander’s Weekend Facts for Sunday, May 5, 2024:
TNT, ‘Inside the NBA’ could be out of the next NBA television contract
While the postseason on the court is currently in full swing, the National Basketball Association is reportedly set to cash in off the court. However, it could come at the expense of one of sports media’s most popular studio shows.
News flew fast last week as the NBA prepares to sign new media rights deals that could significantly up the amount of money the league brings in each year.
Currently, the NBA is in the second-to-last year of deals it signed with The Walt Disney Company’s ESPN and Warner Bros. Discovery’s TNT Sports in 2014. The contracts, which expire after the 2024-2025 NBA season, give the NBA around $2.6 billion per year with $1.4 billion coming from ESPN and $1.2 billion from TNT.
While no contracts have officially been signed for the 2025-2026 season and beyond, the NBA’s exclusive negotiating window with ESPN and TNT recently expired, which allows for outside companies to enter the bidding process. It’s also unleashed a flurry of reports about who is expected to broadcast the NBA after next season and who could be left out.
ESPN, who has been the league’s primary broadcasting partner since 2002 and has aired the NBA Finals on ABC, is expected to retain the rights, including to the Finals. However, it will come at a pretty penny. Reports indicate that ESPN will pay the league $2.6 billion per year in the new contract, almost double what the network is currently paying.
Then, in a new development, Amazon is expected to agree to air a package of games that would air on its Prime Video streaming service. Reports say that the package would include Playoff games, potentially including a Conference Finals series each year. Amazon could also reportedly air every game in the league exclusively on Prime Video on one night each week under the deal. Amazon is expected to pay $1.8 billion for what reporters have deemed the “C” package, which is more than the company pays to broadcast the NFL’s Thursday Night Football slate.
While the league has long had two main broadcast partners, it is expected that the NBA will have three - and maybe even four - partners for the next round of media rights deals. With ESPN and Amazon reportedly almost locked up with their packages, that leaves potentially just one package left. TNT, who has undergone several management changes since signing the contract in 2014, is reportedly seeking to renew its deal with the league. However, a player who isn’t exactly a stranger to professional basketball appears to have jumped into the fray.
NBC, which is owned by Comcast, is reportedly planning a massive bid in an attempt to steal NBA rights away from TNT. The Wall Street Journal (paywall) reported last week that NBC is willing to pay $2.5 billion per year to broadcast the NBA, including airing at least two primetime games each week on its broadcast network. Longtime NBA fans will recall that NBC aired games from 1990 through 2002, becoming known as the network that showed all six of the championships won by Michael Jordan and the Chicago Bulls. The network’s coverage was also known for its theme that could potentially return if the league and the network strike a deal.
NBC has several advantages over TNT that could ultimately help it prevail. One, the company could air games on the NBC broadcast network, which is currently estimated to be available in over 110 million households because it can be watched with an antenna. NBC is also expected to air games on its Peacock streaming service. TNT does not have a broadcast network it could air games on, only TNT the cable channel, which was in 71 million homes as of last year. Cable channels cannot be watched on an antenna for free over-the-air. For another, Comcast and its $151 billion market cap can much more easily drop $2.5 billion each year for the NBA than Warner Bros. Discover, whose market cap fails to exceed $20 billion and is riddled with billions in debt from previous mergers.
TNT, however, should not be counted out. The network has been in a relationship with the NBA that dates back to before even NBC was airing Michael Jordan showcases. TNT has aired NBA games since 1989, the same year it premiered its critically acclaimed studio show ‘Inside the NBA.’ The show, which gained host Ernie Johnson in 1990 and now features analysts Charles Barkley, Shaquille O’Neal, and Kenny “The Jet” Smith, has won 18 Sports Emmys and draws notable applause from millions of fans. While many will agree that there are other methods to finding better basketball analysis, the four hosts have produced many viral moments that have sent the internet (and themselves) into uncontrolled laughter.
Just last week, Charles Barkley’s comments on Galveston, Texas drew more social media reaction than clips of the actual basketball games they’re supposed to be covering.
If TNT lost the rights to the NBA, it’s uncertain whether the crew would stick together in a move to Amazon or NBC. TNT does have the ability to match any offer that another company (like NBC) makes, meaning they could still air games if they match NBC’s $2.5 billion offer. Or the NBA could split their rights into four packages, giving both NBC and TNT a piece of the pie.
Whichever way it turns out, one thing is for certain: The NBA is set to make a boatload of money.
If the league does indeed get the amount of money that is being reported, they would be garnering nearly $7 billion per year from ESPN, Amazon, and NBC/TNT, almost triple the $2.6 billion per year the current deal is paying out. Over an 11-year period, which is the expected length of the new contracts, Bloomberg (paywall) reported last week that the league could fetch a total of $76 billion, which matches a report from three years ago that put that number in play.
For context, only the National Football League receives a higher amount of money per year, with its deals totaling around $10 billion per year. Major League Baseball receives less than $2 billion per year from its deals, while the National Hockey League’s deals give the league close to $1 billion when including Canadian rights. Across the pond, the English Premier League is set to bring in around $2.5 billion per year when it begins a new contract in 2025, including the league’s U.S. deal with NBC.
While we’ll still have to wait until Fall 2025 for the new contracts to kick in, the NBA is already licking its chops at the influx of cash it's going to receive.
For more information on this week’s top story, here’s an article from The Athletic - What to expect in the NBA’s next media deal: Amazon, NBC contenders to join
What Zander’s been reading
One of the biggest issues currently plaguing schools has been the proliferation of social media and smartphones. The Washington Post examined one Connecticut school’s approach that seems to have been a hit, so far.
Check out this week’s featured article in the Washington Post - How a Connecticut middle school won the battle against cellphones - (Apple News link)
Rapid-fire Facts
These are top news headlines from the past week in rapid-fire fashion:
Israel-Hamas War: Negotiations are ongoing in attempts to bring a ceasefire or release of hostages in the conflict between Israel and the Palestinian militant group Hamas. In the last week, U.S. and Egyptian mediators have reportedly seen progress towards a potential ceasefire. However, Israel is not expected to agree to ending the war until they reach their goal of destroying Hamas. Israel has also remained publicly committed to launching an offensive in the southern Gaza city of Rafah, which has drawn concern from the U.S. Any potential ceasefire deal would likely include the release of hostages who were taken from Israel by Hamas on October 7, 2023. Israel believes Hamas has around 100 hostages and the remains of at least 30 others.
College Protests: Protests have erupted on college campuses across the country as a result of the ongoing Israel-Hamas conflict. Pro-Palestinian demonstrators have erected tent encampments on campuses while calling on universities to divest from Israel and businesses perceived to support Israel in the conflict. Universities have claimed the demonstrations, particularly the encampments, have violated policies and have called police to disperse the encampments. Over 2,100 people have been arrested across the country as a result, including over 100 people at Columbia University, where protestors occupied a building on campus.
Trump Hush Money Trial: Former President Donald Trump’s hush money trial in New York entered the second week of testimony last week. Former White House Communications Director Hope Hicks was among those who testified, detailing conversations in the White House after reports broke about a hush money payment towards adult film actress Stormy Daniels. Trump was also punished by Judge Juan Merchan last week. Merchan ruled that Trump had violated a gag order and was given a $9,000 fine. After Trump claimed publicly that the gag order prohibited him from testifying in the case, Merchan clarified in court that was not the case.
Economic Numbers: The Federal Reserve held interest rates steady last week during its quarterly meeting. The benchmark short-term interest rate remains at 5.25-5.50%, where it’s been since July 2023 and the highest level since 2001. The Federal Open Market Committee noted that recent stagnant inflation reports contributed to the decision not to cut rates. In other economic news, the April jobs report showed the U.S. economy added 175,000 jobs last month, almost 70,000 less than expected. The unemployment rate rose to 3.9%, while hourly wages rose 0.2% from the previous month and 3.9% from one year ago.
Marijuana Regulation: Federal restrictions on marijuana could soon be changing, with the Biden administration expected to approve a reclassification of cannabis. Since the Controlled Substances Act was passed into law in 1971, marijuana has been classified as a Schedule I substance, on the same level as heroin, methamphetamines, and LSD. However, the Drug Enforcement Administration is expected to reclassify marijuana to Schedule III, the same level as Tylenol with codeine, steroids, and testosterone. The rescheduling would allow cannabis to be studied and researched for any medical benefits and could allow pharmaceutical companies to sell medical marijuana in states where it is legal.
Zander’s Facts Sporting Club
Here are the top headlines from the sports world in the Sporting Club:
NBA Playoffs: The final spot in the Conference Semifinals round of the 2024 NBA Playoffs will be decided later today. At 1:00 pm ET, the Cleveland Cavaliers will host the Orlando Magic in Game 7 of the series on ABC, with the winner facing the Boston Celtics in the next round. That series will begin on Tuesday at 7:00 pm ET on TNT. Also in the East, the Indiana Pacers will face the New York Knicks in the Conference Semifinals, with Game 1 of the series tipping off Monday at 7:30 pm ET on TNT. In the West, the Minnesota Timberwolves took down the Denver Nuggets in Game 1 of their series on Saturday night. Game 2 will air Monday at 10:00 pm ET on TNT. The other Western Conference matchup starts on Tuesday at 9:30 pm ET on TNT between the Dallas Mavericks and Oklahoma City Thunder.
NHL Stanley Cup Playoffs: Almost every second round matchup of the 2024 Stanley Cup Playoffs has been finalized, with one Game 7 on tap for tonight. Game 7 between the Vegas Golden Knights and Dallas Stars airs tonight at 7:30 pm ET on TBS, with the winner facing the Colorado Avalanche in the second round. Also in the West, the Vancouver Canucks will face the Edmonton Oilers in the next round. The Eastern Conference second round matchups include the Florida Panthers taking on the Boston Bruins, who beat the Toronto Maple Leafs in Game 7 of their first round series on Saturday night. The other East matchup features the New York Rangers and Carolina Hurricanes.
Kentucky Derby: The 150th running of the Kentucky Derby on Saturday featured the closest photo finish in the race since 1947. Mystik Dan prevailed over Sierra Leone by the tip of the nose to win horse racing’s most prestigious event. Mystik Dan, who had 18-1 odds coming into the derby, gave trainer Ken McPeek and jockey Brian Hernandez Jr. each their first derby win. McPeek and Hernandez both won Friday’s Kentucky Oaks race with horse Thorpedo Anna, making McPeek the first trainer since 1952 to win both the Kentucky Oaks and Derby in the same year. The Preakness Stakes on May 18th is the next Triple Crown race of the year, with it currently being unknown whether Mystik Dan will compete.
Miami Grand Prix: The Formula One circuit makes its way to the U.S. for the first time in 2024 later today for the Miami Grand Prix. Today’s race is the first of three to be held in the U.S. this year, with the United States Grand Prix in Austin, Texas, and the Las Vegas Grand Prix on tap for the fall. Red Bull’s Max Verstappen, who has started each race of the season so far in pole position, continued his streak on Saturday by finishing first in qualifying. Ferrari’s Charles Leclerc and Carlos Sainz will start second and third, respectively. The race will begin later today at 3:55 pm ET and air on ABC and ESPN+.
UEFA Champions League: The second leg matches of the UEFA Champions League semifinals are on tap this week, with both spots in this year’s final up for grabs. On Tuesday, Paris Saint-Germain host Borussia Dortmund with Dortmund currently ahead 1-0 on aggregate. Real Madrid will host Bayern Munich on Wednesday with the two currently level on aggregate at 2-2. Both matches will kick off at 3:00 pm ET and air on Paramount+, with Wednesday’s Madrid-Bayern match also airing on CBS. The winners of both matches will face off in the final, which will be played on Saturday, June 1 in London.
Wrapping up the Facts
Before this edition of Zander’s Weekend Facts wraps up, here’s another reminder to check out the latest episodes of the Zander’s Facts podcast. Download and listen to the latest episode of the podcast, along with every episode of Zander’s Facts, wherever you get your podcasts.
You can also listen to every episode of the podcast on this very website. All Zander’s Facts podcast episodes are now available on zandersfacts.com under the “Zander’s Facts” tab for your enjoyment! That includes the next episode of the Zander’s Facts Podcast, which comes out this Wednesday!
That’s a wrap on this week’s edition of Zander’s Weekend Facts. The facts in print return next Sunday, May 12, 2024.
