The Suns and Mercury Celebrate a New Local Media Deal
Two years after becoming the first NBA team to abandon its 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 virtually 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 when they separated from a long-standing partnership with Diamond Sports, then in bankruptcy, in 2023. The lucrative new contract was fueled by the doubling of the Suns’ local ratings and a 425% increase in Mercury viewership, 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 by 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. RSNs in distress as a result of cable cutting 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. 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 deals expire, and the NBA is looking at ways to create options both over the air and on streaming platforms.“It has been beneficial for everyone,” said Mat Ishbia, owner of the Suns and Mercury. “It was doing the right thing for the fans and making the 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 [local television] or even no money and trust 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
