After two years of being the first NBA team to break with their struggling regional television network partner, the Phoenix Suns and Phoenix Mercury are celebrating a 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, valued at more than $30 million per season, according to sources close to the matter, recovers the revenue they stopped receiving when they broke their partnership with Diamond Sports in 2023, then in bankruptcy. This lucrative contract is due to the Suns’ local audiences more than doubling and the Mercury’s, in addition to a general increase in WNBA audiences, growing 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 eventually settled, and the Suns went on to produce their own broadcasts and air 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 NBA teams dealing with regional sports network (RSN) issues followed Phoenix in putting 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 cable cutting is one of the biggest financial problems currently facing the NBA. While this season begins a new 11-year, $77 billion national media rights deal that ensures revenue growth, reductions in local television revenue resulted in the league slightly reducing the previously projected salary cap figures for this season. NBA teams are expected to receive around $145 million each from rights deals next 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 hopes that the initial success of the Suns and Mercury can continue. In the next two years, 18 teams will have their RSN deals expire, and the NBA is looking for ways to create options both on free-to-air and streaming platforms.It’s been a beneficial situation for everyone. 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
