What's Happening?
The Phoenix Suns and Phoenix Mercury have finalized a two-year extension with Gray Media to broadcast their games free over the air across Arizona through the 2027-28 season. This decision follows their departure from a struggling regional television network partner, Diamond Sports, in 2023. The new deal, valued at over $30 million per season, has effectively replaced the revenue lost from the previous partnership. The Suns' local ratings have more than doubled, while the Mercury's audience has grown by 425%, driven by a broader increase in WNBA ratings. The move was initially seen as aggressive and unorthodox, leading to a lawsuit from Diamond Sports, which was eventually settled. The Suns have since launched their own broadcasts and a streaming service called Suns+.
Why It's Important?
This development is significant as it highlights a shift in how sports teams are managing their media rights amidst the decline of regional sports networks due to cord-cutting. The Suns and Mercury's success in increasing accessibility and fan engagement could serve as a model for other NBA teams facing similar challenges. The NBA is currently dealing with financial headwinds from faltering RSNs, despite a new national media rights deal ensuring revenue growth. The Suns' approach demonstrates the potential benefits of prioritizing fan access over traditional revenue models, which could influence future strategies across the league.
What's Next?
Over the next two years, 18 NBA teams will have their RSN deals expire, prompting the league to explore options for broadcasting games both over the air and on streaming platforms. The Suns and Mercury's success may encourage other teams to consider similar strategies. Team owner Mat Ishbia has been in contact with fellow owners about adapting to changing market conditions, suggesting that the Suns' approach could become a blueprint for others. As teams navigate these transitions, the focus will likely remain on balancing revenue needs with fan accessibility.
