What's Happening?
The Phoenix Suns and Phoenix Mercury have extended their free-TV broadcasting deal with Gray Media for two more years, covering the 2027-28 season. This decision follows their initial move away from a regional television network partner, Diamond Sports, which was facing bankruptcy in 2023. The new deal, valued at over $30 million per season, has successfully replaced the lost revenue from the previous partnership. The Suns have seen their local ratings more than double, while the Mercury's audience has grown by 425%, reflecting a broader increase in WNBA viewership. The teams have also launched a streaming service, Suns+, and have distributed free television antennas to fans to enhance accessibility.
Why It's Important?
This development is significant as it highlights a shift in how sports teams are addressing the challenges posed by faltering regional sports networks (RSNs) due to cord-cutting trends. By making games accessible over-the-air for free, the Suns and Mercury are setting a precedent that other NBA teams are beginning to follow, including the Utah Jazz, Charlotte Hornets, and New Orleans Pelicans. This approach could serve as a blueprint for other teams facing similar RSN issues, potentially reshaping local sports broadcasting and fan engagement strategies. The move also comes at a time when the NBA is dealing with reduced local TV revenue, despite a new national media rights deal ensuring overall revenue growth.
What's Next?
With 18 NBA teams having their RSN deals expire in the next two years, the league is exploring options to offer games both over-the-air and on streaming platforms. The success of the Suns and Mercury's strategy may influence other teams to adopt similar models, prioritizing fan accessibility and engagement. As teams navigate these changing market conditions, the NBA will likely continue to seek innovative solutions to maintain and grow local viewership and revenue.
Beyond the Headlines
The Suns and Mercury's decision to prioritize fan accessibility over immediate financial gain reflects a broader trend in sports management where fan engagement is increasingly seen as a long-term investment. This approach could lead to a cultural shift in how sports teams value their relationship with fans, potentially influencing other industries facing similar challenges with traditional media platforms.
