NBC is expected to announce "as early as today" a new,
four-year agreement to continue to broadcast NBA games,
according to Fatsis & Pope of the WALL STREET JOURNAL.
People familiar with the agreement say NBC has agreed to pay
$1.5B to $1.6B over the life of the deal -- "much more" than
the current four-year, $750M deal that expires at the end of
this season. The deal "is expected" to give NBC more than
the 25 regular-season games it broadcasts currently, giving
it more ad time to sell, which Fatsis & Pope write, "could
force down ad rates." The NBA "is also near a deal" with
Turner Sports that would renew Turner's existing cable
rights deal to show games on TBS and TNT. That agreement
calls for Turner to pay "an estimated" $800M over four
years, up from the current $350M. Turner will broadcast 71
regular season games plus up to 40 playoff games this
season. Fatsis & Pope write that the deals come "despite a
number of looming uncertainties" including falling ratings,
which "could slump even further" if Michael Jordan retires
following this season, and a potential labor standoff after
this season (WALL STREET JOURNAL, 11/11).
DETAILS: The new package gives NBC "more" playoff
games, "more flexibility" to start games at 5:30pm ET, and
"the ability to show top teams more often than the current
limit of eight times a season" (N.Y. TIMES, 11/11). NBC's
annual fees will rise "from an average" of $187.5M to about
$425M starting next season (USA TODAY, 11/11). The package
"will solidify the NBA as the No. 2 television sport based
on its rights fee," according to Stephen Battaglio of the
HOLLYWOOD REPORTER. Battaglio also notes that competing TV
sports divisions "never believed that the status of the two
current partners was in doubt," but that ESPN "was ready to
make a serious play for the package" (HOLLYWOOD REPORTER,
11/11). BBDO media buyer Steve Grubbs: "If the NBA had gone
to Fox or ESPN, it probably could have made more money. But
it is looking to create a solid relationship by keeping its
partners happy." With the deal, each NBA team will receive
about US$80M per year (TORONTO SUN, 11/11).
IMPACT ON CBA TALKS: In Toronto, Craig Daniels writes
that the league "has provided itself with a cushion in the
event of an expected labor war with the players'
association. Had negotiations dragged on ... the broadcast
rights most certainly would have dropped" (TORONTO SUN,
11/11). In N.Y., Mike Wise writes that following the TV
deals, "this may be an awkward time for the N.B.A. to put
forth the notion that the labor agreement needs to be
scrapped" (N.Y. TIMES, 11/11). FAME's David Falk: "I don't
think there will be a lockout. People are too intelligent
to put at risk the best-run league in pro sports. [NBA
Commissioner] David Stern is way too intelligent and savvy."
Falk added that NBPA Exec Dir Billy Hunter and his union are
"much better prepared and unified this time." Falk: "There
are aspects to improve on both sides, but one of my concerns
is, sometimes when you open the box, it becomes Pandora's
box" (PHILADELPHIA DAILY NEWS, 11/11).
CORRECTION: THE DAILY incorrectly reported the length
of deal for the Group Licensing Agreement in the current CBA
between the NBA and NBPA. The deal runs through 2003.
COACHING ELITE: CNBC's Tyler Mathison examined the
increasing salaries of NBA coaches. Mathison: "In today's
NBA the superstars in uniform may soon be eclipsed by the
superstars in suits." Mathison: "[M]ore and more teams are
ponying up millions of dollars to land high profile coaches
... to turn their programs around." Nets President Michael
Rowe: "Winning is the best salesperson, it's the best logo.
It sells the suites, it fills the seats. It sells out your
inventory of time on radio, television and print."
Mathison: "The money the Nets are paying Calipari was
unheard of only three years ago, when the average salary for
an NBA coach was $807,000 a year. This season that number
has more than tripled, to almost three million bucks a
year." Rowe: "One good player might affect the play of two
or three players, but a coach can affect the play of the
whole organization" ("Business Center," CNBC, 11/10).
