Phoenix Suns and Mercury Celebrate Success in New Media Deal
After being the first NBA team to break with their struggling regional television network partner, the Phoenix Suns and the Phoenix Mercury are celebrating resounding success with a new local media rights deal that has revitalized their revenue. 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 is valued at over $30 million per season, recouping lost revenue following their separation from Diamond Sports in 2023. This lucrative contract is due to the increase in the Suns’ local audiences, which more than doubled, and the 425% growth in the Mercury’s audience, in line with the overall increase in WNBA audiences.At the time, this was a bold and unconventional move, which led Diamond Sports to sue the team for breach of contract. The lawsuit was eventually settled, and the Suns began producing their own broadcasts and airing them over the air, even giving away free television antennas to fans. They also launched a streaming service called Suns+. Other NBA teams, such as the Utah Jazz, the Charlotte Hornets, and the New Orleans Pelicans, followed Phoenix’s lead by broadcasting their games for free on local stations. The situation of regional sports networks (RSNs) due to the decline of cable television is one of the biggest financial challenges currently facing the NBA. While a new 11-year, $77 billion national media rights deal will begin this season, which ensures revenue growth, reductions in local television revenue have led the league to slightly reduce its projected salary cap figures for this season. NBA teams will receive around $145 million each from the rights deals this upcoming season, but some teams are dealing with reductions in their local television deals. For example, earlier this year, the New York Knicks agreed to reduce their local television deal by $41 million for the 2025-26 season as part of a restructuring plan with MSG Networks. Ishbia has been in contact with several owners who are exploring how to handle changing market conditions and expects the initial success of the Suns and the Mercury to continue. In the next two years, 18 teams will have their RSN agreements expired, and the NBA is looking for ways to create options both on broadcast television and streaming platforms.“It’s been a win-win,” said Suns and Mercury owner Mat Ishbia. “It was about doing the right thing for the fans and making games more accessible. And when you grow your fanbase, good things happen.”
Mat Ishbia
“Everyone wanted to wait and see, it’s a big deal to take less money [from local television] or even no money and trust in it,” Ishbia said. “Hopefully it can be a model for other NBA teams. You do the right thing for the customer and good things tend to happen.”
Mat Ishbia
