Media rights deals are contracts between sports leagues and broadcasters/streaming platforms (like ESPN, Amazon, ABC, NBC, etc.) that pay for the exclusive (or semi-exclusive) rights to broadcast games.
As streaming grows, these deals include digital platforms too. These deals are often massive: billions of dollars over multiple years. They supply a huge portion of league revenue.
Because leagues typically distribute a percentage of total revenue to players (via terms in collective bargaining agreements, when media rights revenue goes up, theoretically there’s more money in the pot for salaries, bonuses, and benefits.
Also, many contracts and salary caps are tied to “Basketball Related Income,” “National Revenue,” which are similar categories which include media rights deals.
Recent Major Deals
The NFL’s current media rights agreements (CBS, NBC, FOX, ESPN, Amazon) are worth about $110 billion over 11 years. These deals include traditional networks and streaming.
The NBA’s 11-year, $76 billion media rights deal (with ESPN/ABC, NBC, Amazon, etc.) starts in the 2025-26 season.
In the WNBA, a new media rights deal worth $2.2 billion over 11 years has added greater visibility & pressure to bump player salaries / benefits.
How Rights Deals Translate to Player Pay
Salary Cap Increases
When leagues bring in additional revenue from new TV media rights or streaming deals, salary caps tend to rise, and often has to rise, under CBA rules and renegotiations.
Higher caps allow teams to spend more, which in turn creates larger contract values for players. This, like standard inflation, is a major part as to why athletes continue to sign larger deals over time.
Example
The NBA’s upcoming deal is projected to allow the cap to increase ~10% per year under the CBA’s cap rules and standard contract value allocations.
Higher Salary Floors
As salary caps rise, minimum contracts and veteran salary tiers increase automatically as well.
More money flowing into the leagues mandatory player pool gives players and their unions more leverage to push for better base pay, benefits and contract protections.
Larger Max Contracts
Top talent and stars benefit the most from higher salary caps and contract allocations.
Max extensions and super-max contract limits are tied directly to cap level and revenue-based formulas.
When league revenue jumps, allocations rise, making superstar deals rise the fastest compare to the rest of the market.
Endorsement & Sponsorship Leverage
Larger media deal values means more games broadcasted, more platforms posting highlights, wider streaming audience and creates more exposure to leagues overall.
As star talent reach grows, endorsement values rise too, not with the same formulaic structure of CBA’s but nearly as consistently in regards of brand deal contract values.
Increased Union/CBA Negotiating Power
When leagues sign massive new broadcast or streaming rights deals, player unions typically use those moment to renegotiate CBA terms.
Often asking for larger percentages of league revenue, to ensure that new media revenue is included in the allocation of player contract pools.
Delays and loopholes can slow down the full benefit of these negotiations, but overall larger media deals give unions more leverage and room to raise league-wide contract allocations.
But There Are Friction Points & Risks
It’s not automatic that media rights wind up in every player’s pocket. There are things that limit or delay benefit:
- Cap Smoothing / Growth Caps: Many CBAs impose rules to prevent massive spikes in salary cap from sudden media rights windfalls, to avoid inflation, to keep league financial stability. For example, the NBA’s new CBA limits cap increases to ~10% per year even though the rights increase is much larger.
- Delayed Implementation: Money from a new rights deal doesn’t always immediately show up in player pay. It may be “booked” in future seasons, or subject to league accounting, revenue recognition schedules, etc.
- Revenue Deductions / Offsets: Leagues often deduct non-broadcast costs, distribution costs, marketing, streaming platform costs, etc., before calculating what is “revenue share.” Players’ share depends on how broad the definition of revenue is in their CBA. Some leagues might also take “pay TV declines,” streaming transition costs, that are losses.
- Distribution Inequality Among Players: Stars will benefit more from cap increases & revenue growth. Mid-tier or role players may get bumps, but proportionally less. Also, if teams choose to spend less, or if roster construction is tight, those increases may be absorbed by front offices rather than always passed on completely.
- Media Industry Risk: Streaming platforms, distributors, and networks are themselves facing economic pressure (cord-cutting, advertiser challenges). If a media partner underperforms or renegotiates downward, that can reduce expected revenue. If ratings slip, renewal deals may not be as generous.
What Players & Agents Should Watch For
To maximize benefit from media rights growth, here’s what players & reps need to dig into:
- CBA Clauses on Revenue Share & definitions of media income: Make sure “new streaming partners,” “digital rights,” “international rights,” etc., are included in player-revenue share pools.
- Guaranteed Income & Minimum Salaries: When negotiating contracts, ensure guarantees are meaningful; higher minimum salaries help protect non-star players.
- Contract Timing: Players on newer contracts (or ones signed after a rights deal kick-in) will benefit more. Timing when you sign matters.
- Exposure / Brand Deals: Use increased media exposure to boost personal brand, content licensing, social equity.
- Risk Mitigation: Check what happens if media revenue misses projections; ensure there are safety nets in CBA if rights partners default or revenues decline.
What the Next Few Years Might Look Like
In the NFL, the $110B deal means average network/streaming payments are huge, which expands the revenue base.
Structures that mandate a certain player revenue share, should push player pay upward.
NBA team salary caps are expected to rise ~10% per year under the new rights deal / CBA smoothing. That means higher value for both max stars and role players.
WNBA and other smaller leagues are also seeing big jumps in attention and rights fees, leading to significantly bigger CBA negotiations. Players are pushing more aggressively for revenue share increases.
Bottom Line
Media rights deals are a major lever for increasing athlete compensation.
When done right, rising broadcasting & streaming revenue means bigger salary caps, bigger max contracts, higher minimums, and more money flowing to players after the superstars.
The benefits are distributed unevenly, and often with a lag. Contract structure, CBA terms, league accounting, and exposure all play big roles.
For players and agents, the key is making sure you’re positioned ahead of media revenue growth, signing contracts timed with big rights deals, ensuring guarantees and definitions of revenue are favorable, and building brand value so you can leverage exposure.
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Credits
Written by: Aidan Anderson
Research and Analysis: Apostle Sports Media LLC
Sources: ESPN, AP News, Sportico, Pro Football Network, Bloomberg, Reuters, Forbes, APSM Proprietary Analysis.
Featured Image: Public Domain / Wiki Commons
Disclaimer: This article contains general financial information for educational purposes and does not constitute as professional advice.
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