Knicks’ James Dolan criticizes NBA’s revenue sharing, new media deal

New York Knicks owner James Dolan has been consistently critical of the NBA’s revenue sharing policies, condemning a potential eight percent cut in the league office over the new $74.6 billion media deal and a national television and streaming package that would allow the league’s regional sports networks. “Presents as.” That’s unfeasible, according to a letter shared with the NBA’s Board of Governors and obtained by ESPN on Monday.

Dolan has been a frequent critic of league revenue sharing policies that spread local media rights and sponsorship deals from high-grossing big markets to small market teams. In a November letter to the Board of Governors, Dolan resigned from his positions on the league’s influential advisory/finance and media committees, ESPN reported. He previously led an unconventional lawsuit against the Toronto Raptors that questioned the impartiality of commissioner Adam Silver.

In the letter shared Monday, Dolan outlined new objections based on a league proposal he shared with owners about dispersing revenues with the new $74.6 billion media deal.

“The NBA has moved toward the NFL model – de-emphasizing and diluting the local market,” Dolan wrote in the letter. “Soon, your only revenue concerns will be ticket sales and what color next year’s jersey will be. Don’t worry, because because of revenue pooling, you are neither guaranteed to succeed nor fail.

“Of course, to get there, the league will have to shed successful franchises and reinvest less successful franchises. This new media deal will go a long way toward accomplishing that goal.”

Dolan outlined his criticism of the league’s plan to retain “…$6 billion (or 8 percent) of total-NBA-related fees…” as “without adequate justification…”, nor that Told how it came. Overall, how will these fees be allocated or to what extent will the league use this purported revenue increase to afford new and incremental costs and expand the league’s ever-increasing expense levels…”

According to the letter, Dolan compared the $15 million (0.5 percent) retained in the league’s existing media deal for the 2024–2025 season and expressed dissatisfaction with an increase to $358 million in 2025–2026 under the league’s proposal.

According to the letter, Dolan also cited issues with the league’s sponsorship and proposed revenue sharing in local television packages. According to Dolan, the league’s “…proposal would also have a negative impact on the value of each member team’s local sponsorship,” which “…includes the delivery of camera-visible benefits at at least 23 home games – roughly “But that’s a 20 percent reduction in what was historically provided.”

Additionally, Dolan wrote, “team sponsors/partners will no longer be protected” during national broadcasts, which reduces the premium that member team sponsors are charged for being the only third party promoted in a specific sponsorship category. May go.

“…These changes significantly increase the challenges associated with attracting and renewing significant sponsorship revenue by creating a particularly unfriendly environment for member team sponsors.”

Dolan cited the 42 million households that have abandoned traditional paid television over an eight-year period and how those losses – which include a 45 percent decline for the Knicks’ MSG Network – are fueling the league’s new streaming and television. Has increased due to deals. Dolan wrote that the league’s new national deal makes RSNs “unviable”.

“Member teams depend on revenue from local rights fees and increased fan engagement through high-quality broadcasts that provide dedicated and tailored coverage for local audiences.

“Yet the proposal threatens to eliminate (regional sports networks) entirely without a comparable replacement offered by the leagues and has no clear plan to address the production and distribution vacuum that the leagues have essentially created in the RSN industry. In its quest to further disrupt….”

According to Dolan: “The increased number of exclusive and non-exclusive games means that national partners will have the ability to broadcast approximately half of the regular season and all postseason games. This reduction in games available to RSNs Would make the entire RSN model unviable.

“The inclusion of streaming partners (e.g., Amazon Prime Video, Peacock) in the proposal allows fans in all NBA markets to bypass their RSNs to watch certain games in their local market. The proposal does not require any RSNs.” Does not provide local security.”

In the letter, Dolan concluded: “We are confident that our concerns are shared by many of our counterparts across the league, each of whom will be equally affected. The league will say it does not matter because your franchise value will increase. This assumes that you will eventually sell…

“Once again, pride of ownership is sacrificed. We are on our way to becoming a one-size-fits-all, characterless organization. Just remember we’ve done this with the help of owners like Jerry Buss.”