Ben Gilbert: belief

Transcript context

…Yes, those are sold by individual teams. Yeah. In the same way that the individual teams are allowed to sell the rights to their arena, or I guess whoever owns the arena is allowed to sell the rights to the arena. It’s negotiated that way. That of course leaves one more huge pillar which is tickets. Our best estimates are $1-$2 billion a year. Obviously got crushed this year from ending the season early and then playing the whole thing in a bubble with no fans. But that’s the three major pillars of NBA revenue. There’s another additional $500 million a year that comes in from China, largely from streaming. That pillar will only grow in future years. The other one that will certainly grow very quickly is when the national TV deal that’s $2.6 billion a year expires in 2024 or 2025. Best estimates are that it will at least double. When we compare this to the NFL that generates $13 billion compared to the NBA’s $8.8, or major league baseball that generates about $10 billion a year, it is a little staggering how broad the reach of the NBA is but how behind they are in monetization. I think all of the teams that we’ve talked about up to this point put them in those really nice places to lean hard into the value capture here in the next several years. Yeah, and also probably start increasing their monetization rates for media rate deals, both streaming and linear television outside the US. There’s obviously China, which is its whole thing, but there’s Europe, there’s Africa, there is the rest of Asia. The NBA is hugely popular in all of these places.…

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