The Implications of the NBA's 76 Billion Dollar Media Rights Deal

This year, when the NBA tips off its season, it will not just be starting a new year of basketball, but also a new financial era. In July, the league signed a record $76 bullion media rights deal with ESPN/ABC, NBC, and Amazon, a transformative agreement that reshapes the economics of the sport for more than a decade to come. For players, this means one thing above all else: their stock is about to skyrocket. Contracts, salary caps, endorsements, and marketability will all take major leaps. But as with any investment boom, some will benefit more than others.

First, with the deal itself, the average of nearly $7 billion per season is staggering, worth nearly triple the previous deal. ESPN and ABC will keep the NBA Finals, while the "NBA on NBC" era makes a return and Amazon joins the rotation with exclusive streaming rights to certain marquee matchups. For fans, this means more platforms and more ways to watch, but for players, it means bigger paychecks starting almost immediately.

The NBA salary cap is directly tied to Basketball Related Income (BRI). With annual revenues about to surge, the cap is projected to grow at an unprecedented pace. Under the old TV deal, the cap rose by around $5 million per season. Under the new agreement, estimates suggest increases of $10-15 million per year are realistic. To put that in perspective, a current 35% max contract could grow by tens of millions more per season over the next decade.

However, not all players will benefit equally. Rising stars and rookies such as Victor Wembanyama, Cooper Flagg, and Amen Thompson will cash in. By the time their rookie extensions or second contracts kick in, the cap will be much higher, and their deals will dwarf today's superstar contracts. Mid-tier veterans will also benefit. With more cap room, teams won't be forced to choose between paying their stars and filling out the roster, There will be likely be more $20-30 million contracts for solid role players who used to be squeezed out. Perhaps most importantly, finally, agents win big as well, with more money in the system meaning more leverage, higher baselines, and bigger bonuses.

On the other hand, stars who just got locked into long-term deals, such as Paolo Banchero, Shai Gilgeous-Alexander, and Anthony Edwards, could look underpaid compared to peers signing new contracts in less years. Small-market teams may still struggle to retain star players despite larger salary caps. Although more money is available, the qualities and lure of cities such as Los Angeles, New York, or Miami do not disappear.

The new media rights deal will ripple far beyond player salaries. Endorsements and sponsorships will grow as NBA and Amazon increase the NBA's reach. This will lead to greater visibility for players, boosting their marketability off the court, which I recently found to be a significant predictor of contract value in my publication.

Women's basketball and the G-League could also benefit if the NBA invests more of its revenue in these areas. That said, whether the league spreads the wealth meaningfully remains to be seen.

Overall, the NBA's new media rights deal is more than just a broadcasting contract. It is a massive financial reset that ensures that the stock of players will soar for at least the next decade. For rising stars, it means historic paydays while for veterans, it means more stability. For fans, it means bigger storylines, likely more player movement, and unprecedented salary figures. The only question that remains then, is who will be the first NBA player to make $100 million a year and how soon will it happen?