NBA Commissioner Adam Silver speaks to the media prior to the game of the Milwaukee Bucks against the Phoenix Suns in Game One of the 2021 NBA Finals on July 6, 2021 at Phoenix Suns Arena in Phoenix, Arizona.
Garrett Ellwood | National Basketball Association | Getty Images
Adam Silver was all smiles as he entered a New York City hotel last Tuesday to give a room filled with sports executives an update on the National Basketball Association.
The NBA is celebrating 75 years in business, and the next few will be pivotal for Silver’s league. The NBA returns to a 82-game format on Tuesday after a pair of seasons shortened by the Covid pandemic, so Silver’s address at the Sports Business Journal’s World Congress of Sports conference came at the perfect time.
Covid is still around, but audiences are back in arenas, which is good news for attendance revenue, and Silver told attendees the NBA expects to make $10 billion for its 75th anniversary. He also said NBA game presentations are too “basic” and spoke about the “David Stern Cup” – an in-season tournament the league wants to incorporate this decade. Silver, 59, also reiterated the cable TV bundle needs fixing, as regional sports networks are threatened by cord-cutting.
When it came to the NBA’s international business, Silver walked a very safe line. China still hasn’t fully re-opened its marketplace to the NBA after Philadelphia 76ers top executive Daryl Morey commented on geopolitical affairs.
The NBA opens with the defending champion Milwaukee Bucks playing the Brooklyn Nets on TNT on Tuesday. Here’s what’s happening with the business in this milestone season.
A $10 billion projection
Silver says the NBA is projecting $10 billion in revenue this season, a notable bump from the last two seasons where fan attendance was limited or non-existent.
NBA revenue slipped from $8.8 billion in 2018-19 to $8.3 billion for the 2019-20 season. The NBA hasn’t released revenue numbers for the shortened 72-game season in 2020-21, but Silver addressed reporters on Monday and notified the NBA’s revenue was down about 35% last year instead of the estimated 40%.
“We lost significant amounts of money. The good news is we’re able to take a long-term view of this business, and continue to grow in it,” he said. “We try to look at it as an ongoing investment in the business over a long period of time as opposed to a loss of individual seasons.”
Media rights make up roughly $2 billion of the league’s revenue. Corporate deals with companies including State Farm, Microsoft, Verizon, and expanded business with Google should align the NBA to pass its record $1.46 billion in sponsorship money.
James Harden #13 of the Brooklyn Nets dribbles the ball against Georges Niang #20 of the Philadelphia 76ers in the second half at the Wells Fargo Center on October 11, 2021 in Philadelphia, Pennsylvania.
Mitchell Leff | Getty Images
On the licensing front, the NBA struck an equity deal with Fanatics for its trading card rights. The NBA has a…
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