New York Knicks owner James Dolan has unleashed sharp criticism against the NBA’s latest media rights agreement, voicing concerns over revenue sharing and the impact on local markets, as reported by NBA insider Adrian Wojnarowski of ESPN.
In a letter addressed to the NBA’s board of governors, Dolan expressed dismay over the league’s plan to retain an 8% cut of the $74.6 billion media deal. He accused the NBA of adopting an NFL-style revenue distribution model that diminishes local market influence.
“The NBA has made the move to an NFL model—deemphasizing and depowering the local market,” Dolan wrote in his letter. “Soon, your only revenue concern will be the sale of tickets and what color next year’s jersey will be.”
Dolan, a vocal opponent of revenue pooling, highlighted discrepancies in the NBA’s financial transparency, particularly in allocating the retained funds. He argued that the new deal disproportionately benefits less successful franchises at the expense of high-performing teams.
“Of course, to get there, the league must take down the successful franchises and redistribute to the less successful,” Dolan continued. “This new media deal goes a long way to accomplishing that goal.”
The Knicks owner also criticized the proposed changes to sponsorship deals and local television packages, which he claimed would devalue team sponsorships and reduce benefits during national broadcasts.
“The league’s proposal would also have a negative impact on the value of each member team’s local sponsorships,” he noted.
Moreover, Dolan pointed out the challenges posed by the shift towards streaming platforms like Amazon Prime Video and Peacock, which threaten the viability of Regional Sports Networks (RSNs). He stated, “The proposal offers no local protections for RSNs.”
According to Dolan, the league’s disregard for RSNs could disrupt local fan engagement and revenue streams, jeopardizing the economic stability of NBA franchises.
“Member teams depend on revenue received from local rights fees and on increased fan engagement through high-quality broadcasts,” he emphasized.
In his letter, Dolan emphasized the detrimental impact of these changes on team owners and local markets, questioning the long-term implications for franchise values and fan loyalty.
“We trust that our concerns are shared by many of our counterparts across the league, each of whom will be similarly impacted,” Dolan concluded.
As the NBA prepares for the new media rights landscape, Dolan’s stance represents a significant challenge to the league’s strategic direction and financial policies.
