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How does TNT make money, NBA extends television deals

David Levy, President of Turner Broadcasting Systems, released a statement on the extension: This is a significant deal for our company and we are pleased to continue our long-standing partnership with the NBA, its fans, owners and players.

ESPN will continue to air the draft, draft combine and draft lottery. For ESPN, this agreement continues our fruitful, longstanding relationship with the NBA and bolsters what is already the sports industry's most impressive and impactful collection of media rights. Turner will continue with Thursday night doubleheaders, the opening night games and the All-Star Game.

The agreement locks in some of the most valuable, original, premium live sports programming that we'll continue to monetize across TNT and all other platforms within our extensive portfolio and will help further grow our businesses into the next decade.

Terms of the agreement were not publicly made available.

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Annual average value nearly 3x current deal. New deal starts after season.

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There is no word whether it will be a split or ESPN will continue to pay a higher fee going forward. Turner maintains its management of the NBA Digital umbrella.

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In addition to keeping their previous rights, Turner and ESPN have also expanded their freedoms in the live streaming realm. The current plan is for fans to not require a cable service provider to watch the games: The league also laid plans in partnership with ESPN for a new online video service that would show live regular season games, the people start making money online right now. In a significant move for ESPN, which derives its huge profits from the pay-TV ecosystem, that service will be open to people who aren't cable or satellite TV customers.

It's unclear whether the new service will have any effect on NBA League Pass or require a nominal fee.

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Currently the NBA offers all out-of-market games on League Pass through cable and satellite service providers. Andrew D.

The NBA just scored a $24 billion slam dunk.

By acquiring significantly more NBA content for both existing and yet-to-be created platforms, we will establish a vibrant, year-round NBA presence for fans.

For ESPN, this agreement continues our fruitful, longstanding relationship with the NBA and bolsters what is already the sports industry's most impressive and impactful collection of media rights.

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Stability is important for the networks, as it also allows them to block out the competition. The NBA cannot talk to other networks until next year, but it is expected that this new deal will prevent a third rights package from being shopped.

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The revenue uptick will also have a noticeable on-court impact, as the salary cap and player salaries may skyrocket in the coming years.

The NBA's salary structure is dependent on league-wide revenue—a pie that will exponentially grow under these new how does TNT make money. That potential leap would affect things ranging from maximum player salary to the league's luxury tax and more.

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The new television deal, for instance, is part of the reason LeBron James signed a two-year deal in Cleveland rather than a full max. Knowing the influx of cash was on the horizon, the NBA has already begun considering alternative moves to avoid one massive summer of freewheeling spending. Grantland's Zach Lowe indicated the league is considering "smoothing" the cap process, though it would require the approval of the players association.

As Lowe notes, players receive 50 percent of basketball-related income regardless of how the salary cap is structured.

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