Silver: Broadcasting Issues Must Be Resolved Before Expansion

NBA commissioner Adam Silver believes that resolving local broadcasting issues is a higher priority than expansion, Tom Friend of the Sports Business Journal reports.

Silver wants to see a full transition from ailing Regional Sports Networks and cable TV to streaming services, he told ESPN analyst Bob Myers during the Sports Business Journal’s CAA World Congress of Sports.

“I … hate to make it so negative, but [local game broadcasts] are caught in legacy media, which is rapidly declining,” Silver said. “And our young fans, in particular, we used to talk about cord-cutters; they’re really cord-nevers. It’s not part of their lives to buy cable … And so the local situation by definition will then get even worse.”

Silver believes that some teams are actually losing significant revenue by being “trapped” on cable.

“I actually think we’re undervaluing live sports right now and the specialness around it,” he said, noting that RSN rights fees have taken a “25% hit collectively; for some teams it’s around a 50% reduction.”

Silver also noted that “two-thirds of the NBA teams are operating with RSNs that just came out of bankruptcy [Main Street Sports Group] or some that were completely defunct [AT&T SportsNet].”

The answer, which could come over the next two off-seasons, is to create a national streaming RSN platform while simultaneously reaching agreements with streaming services such as Amazon, YouTube, Apple, ESPN+ and Roku.

Expansion in the short run is “not a foregone conclusion,” Silver said, until those broadcasting and rights fees issues are sorted out.

As for expansion, it’s not a slam dunk that Seattle and Las Vegas will be the next two cities awarded franchises. Vancouver, which lost the Grizzlies to Memphis in 2000, is interested in re-obtaining a franchise.

Silver also addressed the NBA’s desire to have a European league. He envisions having 12 permanent franchises and four other clubs that would have to “play in on a yearly basis,” such as established EuroLeague teams.

“Just to be clear, this would be a standalone league,” Silver said. “It wouldn’t be a division of the NBA. Maybe one day some of these teams could be a division of the NBA.”

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