How Does the NBA Make Money?

The NBA is a multi-billion dollar business and one of the most popular sports leagues in the world. But how does the NBA make money?

NBA’s Business Model

NBA’s main sources of revenue

The National Basketball Association (NBA) is a men’s professional basketball league in North America, composed of 30 teams (29 in the United States and 1 in Canada). It is one of the four major professional sports leagues in the United States and Canada, and is widely considered to be the premier men’s professional basketball league in the world.

The NBA’s business model is based on a combination of television contracts, ticket sales, merchandise, and licensing fees. The league allows each team to keep all or most of the revenue it generates from these sources, giving them a strong incentive to maximize revenue.

The NBA has two types of television contracts:
-National TV contracts: These are long-term deals with ESPN/ABC and TNT that are worth a combined $24 billion over nine years (2014–2023). These networks televise nationally televised games on Wednesday and Friday nights (ESPN), Thursday nights (TNT), and Sunday afternoons (ABC). TNT also airs the All-Star Game, most playoff games, and the Finals. ABC airs select regular season games on Saturday evenings as well as the Finals. ESPN airs one game every Monday night during the regular season.
-Regional TV contracts: Each team also has its own regional contract for games that are not nationally televised. These deals are typically worth much less than national TV contracts, but still provide significant revenue for teams.

NBA teams generate revenue from ticket sales for home games. The average ticket price for an NBA game was $57 in 2017–18, up from $54 in 2015–16. Teams also generate revenue from concessions, parking, and suites at their arenas.

The NBA generates significant revenue from merchandise sales. Fans can purchase official team jerseys, hats, t-shirts, and other gear either at arena shops or online through the NBA Store. In addition to team gear, the NBA Store sells jerseys and products featuring league-wide logos (such as the NBA logo or the logo for Christmas Day games) and events (such as All-Star Weekend). The NBA has partnerships with numerous retailers to sell its merchandise, including Dick’s Sporting Goods, Fanatics, Lids, Nike, Old Navy, and Walmart.

Finally, the NBA earns revenue from licensing fees paid by companies that use its logos and images in their products. This includes companies that manufacture officially licensed apparel and collectibles as well as those that produce video games featuring NBA teams and players.

NBA’s Media Rights

The NBA has sold the media rights to its games to various networks and streaming services. These rights are then sublicensed to other broadcasters, both in the U.S. and internationally. The fees that the NBA receives from these rights deals are a major source of revenue for the league.

NBA’s national television partners

The NBA has two national television partners, ABC/ESPN and TNT. The league also has a digital media rights partner, NBA TV. Each company pays the NBA for the right to broadcast games nationally.

ABC/ESPN pays the NBA about $1.4 billion per year for the right to broadcast games on Saturday nights and Sunday afternoons, according to The Washington Post. That’s an average of about $10 million per game. TNT pays the NBA about $930 million per year for the right to broadcast games on Thursday nights, according to The Wall Street Journal. That’s an average of about $7 million per game.

The NBA TV deal is worth about $24 million per year, according to Sports Business Journal. That comes out to about $176,000 per game.

NBA’s digital media rights

The NBA has been at the forefront of digital media rights, becoming the first major U.S. professional sports league to sell its digital rights exclusively. In 2016, the NBA signed a nine-year, $24 billion media rights deal with ESPN and Turner Sports that runs through the 2024-25 season. The deal includes exclusive national broadcast rights for ESPN and TNT, as well as non-exclusive digital rights for NBA TV, NBA.com, and the NBA app.

In addition to broadcast rights, the NBA also sells sponsorship packages that include digital media rights. For example, team sponsorship deals with Nike and 2K Games include digital media rights for those brands to use on their own platforms. The NBA has also sold exclusive digital rights to companies like FanDuel and DraftKings for daily fantasy sports games.

The NBA is also one of the few leagues in the world that owns and operates its own television network. Launched in 1999, NBA TV is available in over 60 million homes in the United States and Canada. NBA TV airs live games, studio shows, classic games, and original programming throughout the year.

NBA’s Merchandise Sales

The NBA is a multi-billion dollar industry that generates a significant amount of revenue from merchandise sales. Team jerseys and apparel are some of the most popular items among fans, and the league does a great job of marketing their product. In addition to team merchandise, the NBA also sells general league merchandise, such as basketballs, t-shirts, and hats. The league generates a lot of revenue from these sales, and it is a significant source of income for the NBA.

NBA’s global merchandising partners

The NBA has a broad range of global merchandising partners. In addition to having agreements with many of the world’s leading retailers, the NBA also has direct-to-consumer relationships with several e-commerce sites. Below are some of the NBA’s global merchandising partners:

Adidas: The NBA has a partnership with Adidas for on-court apparel and team uniforms. Adidas also manufactures replica jerseys and other fan gear, which is available at retail outlets and e-commerce sites around the world.

Fanatics: Fanatics is the NBA’s exclusive provider of licensed merchandise. Fanatics operates retail stores, an e-commerce site, and a mobile app, where fans can purchase jerseys, hats, apparel, and other merchandise.

Nike: Nike manufactures on-court apparel and team uniforms for the NBA. Nike also manufactures replica jerseys and other fan gear, which is available at retail outlets and e-commerce sites around the world.

Under Armour: Under Armour manufactures on-court apparel and team uniforms for the NBA. Under Armour also manufactures replica jerseys and other fan gear, which is available at retail outlets and e-commerce sites around the world.

NBA’s Ticket Sales

The NBA generates a lot of its revenue from ticket sales. This includes both home games and away games. The ticket prices for an NBA game can vary depending on the game and the team. However, the average price of an NBA ticket is around $60.

NBA’s ticketing partners

The NBA has two primary ticketing partners, Ticketmaster and Flash Seats.

Ticketmaster is the NBA’s official ticketing partner and provides ticketing services for 28 NBA teams.

Flash Seats is a digital ticket marketplace that allows fans to buy, sell, or transfer tickets electronically. Flash Seats is used by 14 NBA teams.

NBA’s Other Revenue Sources

Though the National Basketball Association (NBA) brings in the vast majority of its revenue from national television and marketing deals, the league also generates substantial income from other sources. Local television broadcasts, ticket sales, merchandising, and NBA League Pass – the league’s premium live game subscription service – all contribute to the NBA’s bottom line. In this article, we’ll take a closer look at each of these revenue streams.

NBA’s sponsorships

In addition to the revenue generated from ticket and merchandise sales, the NBA also relies on sponsorships to help fund the league. Corporate sponsorships are very important for the NBA, as they provide a large source of funding that helps cover the costs associated with running the league. Some of the biggest sponsors of the NBA include Nike, Adidas, Coca-Cola, and Budweiser. These companies pay millions of dollars to have their logos displayed on NBA jerseys and other league-related merchandise.

NBA’s Foundation

The National Basketball Association (NBA) is a men’s professional basketball league in North America, composed of 30 teams (29 in the United States and 1 in Canada). It is one of the four major professional sports leagues in the United States and Canada, and is widely considered to be the premier men’s professional basketball league in the world.

The NBA was founded in 1946 as the Basketball Association of America (BAA). The league adopted its current name at the start of the 1949–50 season when it merged with the National Basketball League (NBL). The NBA’s several international as well as individual team offices are directed out of its head offices located in Midtown Manhattan, while its NBA Entertainment and NBA TV studios are directed out of offices located in Secaucus, New Jersey.