The Phoenix Suns and Phoenix Mercury are shaking up the way their games are broadcast by removing their long-standing television rights from cable. Starting with their next seasons, the games will be available for free over-the-air and streamed online on a new direct-to-consumer service, rather than on Bally Sports Arizona where they have been shown on cable since 2003. The shift will increase the number of households the games are available in from around 800,000 to more than 2.8 million, according to the team, but could cost the Suns tens of millions in guaranteed money per year in the short term.
"We're not focusing on money. We're focusing on winning, success and taking care of fans, taking care of the community," said new team owner Mat Ishbia. "What happens is you always end up making money. It always works out." The shift comes after Diamond Sports Group, Bally Sports Arizona's parent company, filed for bankruptcy in March. The regional sports network missed a payment to the Arizona Diamondbacks that was due on 1 April, and other teams that had deals with Diamond subsidiaries also missed payments, leading Major League Baseball to seek to void the rights deals.
As more local media rights deals expire in the near term, other NBA, MLB and NHL teams might find themselves in the same situation as the Suns and Mercury and consider shifting their games away from the cable model. "We need to reimagine these relationships," said NBA commissioner Adam Silver on "The Marchand and Ourand Sports Media Podcast" last week. "In terms of the fundamentals of the business, everyone sees what's happening in the television market. You've had a dramatic decline in the number of television homes."
Ishbia, who bought a controlling stake in the Suns and Mercury in February at a $4bn valuation, said he believes appealing to more fans will increase value in other areas, including sponsorship deals. The media world is changing, he said, adding that he consulted with the NBA league office and some other owners before making a decision to go this path. A price point for the streaming option, designed for younger viewers who might not own televisions, has not been determined, but the Mercury will have their games streamed for free this season.
Commentaires