The Suns and Mercury Celebrate a New Local Media Deal
Two years after being the first NBA team to abandon its struggling regional television network partner, the Phoenix Suns and Phoenix Mercury are celebrating a proof of concept with a new local media rights deal that has practically replaced the 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 by moving away from a long-standing partnership with Diamond Sports, which was then in bankruptcy, in 2023. The lucrative new contract was driven by more than double the Suns’ local ratings and the Mercury’s audience growth of 425%, in addition to 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 putting them on the air, running promotions to give away free television antennas to fans. They also launched a streaming service for their games called Suns+. Other NBA teams dealing with regional sports network (RSN) issues followed Phoenix in putting their games on local free-to-air stations, including the Utah Jazz, Charlotte Hornets, and New Orleans Pelicans. The RSNs in difficulty as a result of the reduction in cable television is one of the biggest financial headwinds currently facing the NBA. While this season begins a new 11-year, $77 billion national media rights deal that secures 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, as reported. The Knicks now expect to receive around $107 million, down from the previously agreed $148 million. 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 deals with RSNs expire, and the NBA is looking at ways to create options in both over-the-air and streaming platforms.It’s been a win-win situation. It was the right thing to do for the fans and to make 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
