Sun and Mercury: A Local Transmission Success
After being the first NBA team to break with their struggling regional television partner, the Phoenix Suns and Phoenix Mercury celebrate a resounding success with a new local media rights deal. The Suns and Mercury have agreed to a two-year extension with Gray Media to broadcast their games for free in Arizona through the 2027-28 season. The deal, which sources close to the matter say exceeds $30 million per season, restores the revenue they stopped receiving when they separated from Diamond Sports in 2023.This lucrative contract is due to the fact that the Suns’ local audiences more than doubled and those of the Mercury, in addition to a general increase in WNBA audiences, grew by 425%.
At the time, it was an aggressive and unusual move, and Diamond Sports sued the team for breach of contract. The lawsuit was settled and the Suns moved on, producing their own broadcasts and airing them over the air, running promotions to give away free television antennas to fans. They also launched a streaming service for their games called Suns+. Several other NBA teams dealing with regional sports network (RSN) issues followed Phoenix’s lead and aired their games on local over-the-air television stations for free, including the Utah Jazz, Charlotte Hornets, and New Orleans Pelicans. The fall of RSNs as a result of “cord cutting” is one of the biggest financial problems currently facing the NBA. NBA teams will receive around $145 million each from the rights agreements this upcoming season, but some teams are dealing with reductions in their local television deals. Ishbia has been in contact with several fellow owners who are exploring how to handle changing market conditions and hopes that the initial success of the Suns and Mercury can continue. In the next two years, the RSN agreements of 18 teams will expire, and the NBA is looking for ways to create options both on free-to-air and streaming platforms.It has been beneficial for both parties. It was about doing the right thing for the fans and making the games more accessible. And when you grow your fanbase, good things happen.
Mat Ishbia, Suns and Mercury owner
Everyone wanted to wait and see, it’s important to take less money [from local television] or even nothing and trust in it. Let’s hope it can be a model for other NBA teams. You do the right thing for the customer and good things usually happen.
Mat Ishbia, owner of the Suns and Mercury
