With the regional sports network business in free fall, many franchises, including the Portland Trail Blazers, are choosing to jump ship. This season, the Blazers opted to abandon their previous agreement with Root Sports Northwest, which only reached 20% of fans in the Portland market. Instead, they struck deals with local over-the-air affiliates, allowing fans to watch games for free with an antenna.
According to a report by Tom Friend in Sports Business Journal, this strategy has resulted in a significant 69% increase in viewership year-over-year. However, this increased reach came at a cost, with the Trail Blazers experiencing a $20 to $25 million reduction in annual media rights fees by moving their games outside the pay TV ecosystem. This year’s increase is also a rebound from a nearly 50% drop in viewership last season with Root. “Listen, we’re thrilled we’ve gone to first in the league,” said Trail Blazers president Dewayne Hankins to SBJ. “But I can do the math. When you dropped the way we did last year, sometimes you really have nowhere to go but up.”
Hankins is aware that sustaining this level of viewership growth is not a guarantee. For instance, the Utah Jazz have faced a 44% decline in viewership this year during their second season with an over-the-air strategy, resulting in a reported 50% loss in media revenue. This complex cost-benefit analysis is crucial for teams, yet the Trail Blazers believe the benefits outweigh the lost revenue.
With fans watching more games, Hankins expects a boost in ticket and merchandise sales. Additionally, as mentioned by Friend, teams that choose this route will benefit from the NBA’s new national media rights deals next year, which should help mitigate any local revenue losses.
