Declining local television revenue is becoming an increasingly important issue for the NBA, with league officials reportedly planning to consolidate most local media rights under a single broadcasting partner beginning in 2027, according to ESPN.
Although the NBA’s salary cap rose by 6.7% this offseason, it fell short of the maximum 10% annual increase permitted under the league’s collective bargaining agreement.
While a shorter playoff run affected basketball-related income, sources say weakening local TV deals have become the larger long-term concern.
The NBA’s record-setting 11-year, $77 billion national media agreements with ESPN, NBC, and Amazon have helped offset some of those losses.
However, local broadcast revenues continue to decline across the league.
Last year, even the New York Knicks accepted a 28% reduction in payments from MSG Networks, resulting in a $41 million annual revenue decrease.
League executives expect similar declines to continue next season before many local media agreements expire in 2027.
At that point, the NBA hopes to package most local rights under one national partner to create a more stable revenue model.
“It’s one of the most significant financial things going on in the league right now,” one team president said. “It’s played at least some role in moving forward with expansion.”
Falling Local TV Revenue Behind NBA's Slower Cap Growth, Expansion Push https://t.co/y5yAbZxmHq
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