For the upcoming basketball seasons all local Phoenix Suns and Phoenix Mercury games will be … [+]
The NBA’s Phoenix Suns and WNBA’s Phoenix Mercury announced last week that all games for their respective upcoming seasons will air on broadcast TV. This is an agreement both clubs made with Gray Television
This shift from subscriber-based pay TV to free over-the-air broadcast television will be the start of a trend. In an email to executives, Mat Ishbia owner of both basketball teams called it, “the first modern deal to go exclusively over the air statewide.” Ishbia added, “I’ve said from day one that our focus is our fans, our community, and every member of our organization and this deal checks every box.
Of the agreement, Pat LaPlatney, President & Co-CEO of Gray Television said, “We’re thrilled this partnership will connect our loyal family of viewers with the Phoenix Suns and Mercury.” Debbie Bush, Vice President and General Manager, Arizona’s Family (a subsidiary of Gray Television) said, “Live sports can bring a community together. Combining that with the power of broadcast television and Arizona’s Family, it becomes a multiplier effect benefitting the team, the fans, and the clients.”
Additionally, both basketball clubs signed an agreement with Kiswe to launch a streaming service for their games. This will enable fans to also watch games via smart TVs and smart phones using an app. Hence, cord-cutters and non-cable subscribers can watch games via streaming or free with an antenna.
As cord-cutting continues to diminish the reach of regional sports networks, all Suns and Mercury games not on national broadcast television will air on KTVK, KPHO and/or the statewide KPHE, all three are owned by Gray Television. This enables both teams to reach the three Arizona TV markets; Phoenix, Tucson and Yuma. Collectively, the stations cover over 95% of the state’s 2.8 million TV homes, a threefold increase from the current availability.
The first of 13 regular season Phoenix Mercury games to broadcast will be on May 25. (With the return of Britney Griner, who missed all of last season imprisoned in Russia, the first two Mercury games will be televised nationally.) Broadcast TV will also televise any Mercury postseason games. For the 2023-24 season, the Suns will have at least 70 regular season games airing on broadcast TV.
In response, the Diamond Sports Group, which owns the Bally Sports RSNs says, the agreement with Gray Television violates bankruptcy law commenting, “This is an improper effort by the Suns to change their broadcasting partner without permitting Diamond to exercise our contractual rights.” Last month, Bally Sports missed scheduled payments to five MLB teams including the Arizona Diamondbacks. The RSN also televises NHLs Arizona Coyotes.
Despite a missed payment Bally Sports continues to televise MLB games, a bankruptcy court ordered Diamond Sports to pay half of the money owed to the baseball clubs. Sports Business Journal reports contractually Bally Sports has the right to match any financial offer the clubs receive. Although no financial terms with Gray Television was disclosed, the agreement will cover Phoenix Mercury games for the next two seasons and Phoenix Suns for the next five seasons. Josh Bartlestein, Suns and Mercury CEO, says, “Diamond’s position is totally inaccurate. We are moving forward with this deal and could not be more excited about what it means for our fans and our future.”
Bally Sports is not the only RSN facing financial difficulty. In February, AT&T SportsNet, owned by Warner Bros. Discovery
On the other hand, broadcast stations which had been a primary source for local sports before the emergence of RSNs over forty years ago are expressing renewed interest in live sports. Last September the NBAs Los Angeles Clippers announced they were televising 11 regular games for the 2022-23 season. The games aired exclusively on the Nexstar owned broadcast station KTLA. Clippers games were also aired on the Nexstar owned KSWB (San Diego), KGET (Bakersfield) and KSEE(Fresno).
Previously, Clippers games aired on from 1985 to 1991 and 2002 to 2009. Clippers owner Steve Ballmer has been trying to expand to a bigger fan base by reaching a mass audience. After the announcement, the Clippers renewed a multiyear agreement with Bally Sports.
In December, station group owner Scripps announced the launch of a new division; Scripps Sports. Afterwards, E.W. Scripps CEO Adam Symson said to investors, “As we sit here today witnessing the implosion of the RSN business model, it’s also why Scripps Sports has been getting a very warm reception in that marketplace. Our ubiquitous over-the-air, pay TV and connected TV reach through Ion and the Scripps Networks has immense appeal for leagues looking for both new and consistent franchise viewing events across a national footprint.”
In April, Scripps said that for the 2023 season they will be televising 15 WNBA games on ION, a nationally distributed broadcast network. The games will be televised each Friday evening. Sports Business Journal reports that as the RSN model collapses, Scripps Sports is also having discussions with several local teams. One possibility is the NBAs Utah Jazz whose games have been televised on AT&T SportsNet could move to Scripps.
Nexstar is another station group interested in live sports. The nation’s largest station group also owns the CW, another nationally distributed broadcast network. For 2023 the CW will televise 14 live golf tournaments from the Saudi backed LIV. It’s the first time the network 17-year-old network has televised a live sporting event. Nexstar chief operating officer Tom Carter said to investors, “The world has begun to wake up again to the benefits of the broadcast business model. As they say, what’s old is new again.” Carter added, “Broadcast has again proved to be the most important medium for engaging valuable live sports audiences.”
Besides local broadcast, live streaming remains another option for local sports. In recent months the MSG Networks, an RSN, announced the launch of MSG+ which will live stream games New York Knicks, New York Rangers, New York Islanders, New Jersey Devils and Buffalo Sabers. The monthly fee is $29.99. Also, the YES Network will stream games from the New York Yankees, Brooklyn Nets and New York Liberty games costing $24.99 monthly. Last year, NESN launched NESN 360 which live streams Boston Red Sox and Boston Bruins games costing $29.99 monthly.
For years non-network affiliated local stations such as WSBK in Boston, Chicago’s WGN and WOR and WPIX in New York reliably broadcast live local sports games until the arrival of RSNs. As the business model of RSNs crumble, local sports on broadcast TV (complemented by live streaming) are making a comeback.
Among the benefits of local sports on broadcast television include wider reach, more viewers, less immune to blackouts (from stalled retransmission consent negotiations), no monthly subscriber fees, a younger audience who have cut the cord. As a result, we should expect the Phoenix local sports announcement to be the future model for local sports media rights.