Story by
YouTube remains frontrunner for local NBA streaming hub, per report
- Story by
- YouTube remains frontrunner for local NBA streaming hub, per report
Credit: Stephen Lew/Imagn Images
The NBA remains in "advanced talks" with YouTube about launching an aggregated local streaming hub ahead of the 2027-28 season, but DAZN is "waiting in the wings" should those talks fall apart, according to the latest update on the matter by Tom Friend in Sports Business Journal .
Friend writes that there is an expectation by some in the industry that the NBA and YouTube either reach a deal, or a stalemate, by this fall. In the latter scenario, London-based streaming service DAZN could swoop in and become the favorite to land the package, or another company like ESPN or Amazon could test the waters. But for now, YouTube remains "the favorite" to land the bespoke streaming hub.
Advertisement
Talks, however, remain complicated. The NBA would like to offer up at least 25 of 29 potential teams in Year 1 of the service (with the Raptors being the 30th team and locked into a long-term deal with Rogers Communications in Canada). Ideally, however, the league would like to have all 29 teams available on the platform in some capacity, even if that means simulcasts on the hub before transitioning to full participation in later seasons.
Per the report, if the NBA is able to scare up all 29 teams to participate in the hub, its asking price to YouTube will be roughly $1.2 billion, in line with previous reporting that the league is seeking over $1 billion for rights to the streaming product . The league would then take that revenue and split it amongst teams based on market value, with teams like the Boston Celtics getting a higher payout than a team like the Charlotte Hornets ; though the league's two biggest draws, the Los Angeles Lakers and New York Knicks , would likely get more than anyone if either team participates in full.
Should the NBA only get 25 teams to initially join its service, YouTube "may offer in the $850 million range," Friend reports.
The service, which is expected to launch ahead of the 2027-28 season , would be licensed for a nine-year term to align with the NBA's set of national media rights deals which expire following the 2036-37 season. The deal would also reportedly include a five-year exit option.
Advertisement
For YouTube, the devil is in the details. "There's too much unknown for YouTube to pull the trigger now," Friend writes, adding, "It needs to know which teams are opting in, who's controlling the inventory, whether there will be local OTA simulcasts, etc."
Perhaps the biggest question marks are the participation of the aforementioned Lakers and Knicks. The Lakers make an obscene amount from an antiquated local broadcast deal with Charter Communications that pays over $200 million annually. The Knicks raked in $110 million in local rights revenue this past season, though that payment came from James Dolan's MSG, which owns the team, meaning the comparison is not apples-to-apples with the Lakers. Meanwhile, most of the teams formerly tied to the FanDuel Sports Networks are signing deals worth about $10 million for the upcoming season.
There's essentially zero chance the Lakers could recoup the same fee inside the NBA's hub, but the future of its sweetheart deal with Charter, which runs through the 2031-32 season, is far from guaranteed. Charter has been eyeing a sale of Spectrum SportsNet for the better part of the past year, and any deal would hinge on the Lakers accepting a lower rights fee. One would presume that Josh Kushner and Bob Iger, who are prepared to purchase the Lakers for $12.5 billion , would do anything in their power to keep that local media revenue flowing through 2031-32. But perhaps there's a deal to be made with the new owners.
The Knicks, on the other hand, seem more likely to join the NBA's hub, at least in a limited capacity. Friend reports the Knicks "could conceivably start out with 15 games digitally on YouTube's platform" before scaling up the number of games over the span of several seasons.
Advertisement
If YouTube "waffles" for any reason, DAZN stands ready to swoop in and become a serious bidder for the hub. The streamer will already carry local broadcasts for 10 teams this upcoming season, five of which are exclusive deals. However, DAZN will reportedly have to "pay a premium" for rights to the NBA's aggregated hub compared to a more established platform like YouTube. Friend reports that DAZN could have to pay as much as $1.4 billion to outbid a company like YouTube.
Finally, Friend suggests that both Amazon and ESPN have "shown interest" in bidding on the centralized hub, but aren't considered frontrunners because they already shell out billions per year to the NBA for national broadcast deals.
To sum things up, there's still a lot to be determined here. The NBA has to get firm commitments from its teams as to whether they'll join the hub for the 2027-28 season. Those commitments might very well come down to the exact terms by which each individual team agrees upon. For instance, will there be over-the-air simulcasts? Will there be revenue guarantees? What about advertising arrangements? Only once these details are sorted out can the NBA get a firm offer from the likes of YouTube.
Where these negotiations land this fall would seem to be the next inflection point. If talks with YouTube still seem far away, perhaps DAZN, ESPN, or Amazon become more likely partners. For now, however, the ball is in YouTube's court.
The post YouTube remains frontrunner for local NBA streaming hub, per report appeared first on Awful Announcing .
