Phoenix Suns and Mercury Celebrate Success in New Media Deal
After two years of being the first NBA team to break with their struggling regional television network partner, the Phoenix Suns and the Phoenix Mercury are celebrating a proof of concept with a new local media rights deal that has practically replaced 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 worth more than $30 million per season, restoring the money they left on the table when they abandoned a long-standing partnership with Diamond Sports, which was then in bankruptcy, in 2023. The lucrative new contract was driven by the doubling of the Suns’ local ratings and the 425% growth in the Mercury’s audience, as well as a broader increase in WNBA ratings.At the time, it was an aggressive and unorthodox move, and Diamond Sports sued the team for breach of contract. The lawsuit was eventually settled, and the Suns moved forward producing their own broadcasts and airing them, 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 in broadcasting their games for free on local over-the-air stations, including the Utah Jazz, Charlotte Hornets, and New Orleans Pelicans. The weakening of RSNs as a result of the cable cut is one of the biggest financial headwinds currently facing the NBA. While a new 11-year, $77 billion national media rights deal will begin this season, guaranteeing revenue growth, reductions in local television revenue resulted in the league slightly reducing its previously projected salary cap numbers for this season. NBA teams are expected to 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 said he has been in contact with several fellow owners who are exploring how to handle changing market conditions and hopes the initial success of the Suns and Mercury can continue. In the next two years, 18 teams will have their RSN agreements expire, and the NBA is looking for ways to create options both on-air and on streaming platforms.It’s been a win-win situation. 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 a big deal to take less money [from local television] or even no money and trust in it. 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, Suns and Mercury owner
