The NBA is "now negotiating new four-year TV contracts"
which could net the league "up to" 50% more than its current
rights deals with NBC and Turner Sports, according to Jeff
Jensen of AD AGE. NBA Exec VP/CMO Rick Welts: "The outcome
of our television negotiations will determine how we will
market ourselves over the next four years." Jensen adds
that "many" of the league's current sponsorship deals,
including McDonald's, Quaker Oats and Gatorade, "expire at
the end of this season." But for NBA sponsors, a 50%
increase in TV rights fees "will affect the cost of doing
business with the NBA." Gatorade VP/Worldwide Sports
Marketing Bill Schmidt: "We're always concerned about
increases in sports TV rights fees because we all know who
will pay for that." While NBC charged "an estimated"
$80,000 for 30-second spots last season, up about 15% from
'95, Turner will charge $19,000-20,000 per 30-second spot
this season. But Jensen adds that "marketers will still buy
the NBA because it delivers the demographics they need:
teen-age and young adult males." Gatorade's Schmidt: "The
NBA remains very hot with our consumers." The NBA's Welts
added that the NBA will again "bundle" promo rights with TV
time, but he added that the TV networks are "taking
advertiser concerns into consideration," and that "it's
possible that there will be fewer units available in the new
packages, as they may include fewer games" (AD AGE, 10/27).
