Bob Iger Is Not Worried About the NBA’s Poor Ratings This Year
In case you missed the news, The Walt Disney Company held its quarterly earnings call this morning. By and large, the presentation was a dry run-through of Disney’s bottom line with very few updates about the company’s future.
During the question and answer portion of the presentation, however, investors got a chance to ask CEO Bob Iger and CFO Hugh Johnston about some of the challenges and opportunities currently facing Disney.
One of the most significant topics of conversation was Disney’s investment in live sports, specifically the NBA.
Photo: ESPN
“On the NBA, can you talk about how you view the path to profitability in the new contract given the weaker season-to-date ratings and, obviously, the step-up next season?” Jessica Reif Ehrlich of Bank and America asked.
The NBA’s Ratings Have Been Down This Year
For those who haven’t been paying attention, the NBA’s ratings have cratered so far this season, raising the alarm for fans and analysts alike.
Unfortunately for Disney, the NBA’s poor ratings have come on the heels of a new 11-year broadcasting deal between ESPN and the league.
Photo: ESPN
As part of the new agreement, ESPN will remain the exclusive home of the NBA Finals and the NBA Conference Finals through 2035. The deal cost Disney a reported $2.6 billion.
Bob Iger Isn’t Worried…Yet
Despite the NBA’s low ratings this year, Bob Iger dismissed any notion that Disney was worried about their partnership with the league.
Photo: Deadline
“In the NBA, we don’t talk about profitability for any one of our licensed sports packages. We obviously believe in the NBA long term. It’s a great sport. We think it’s a growth sport,” Iger began.
“We don’t really look at ratings year to year that carefully. First of all, it’s not even — we haven’t even seen half a season, but we’re not distracted by it any sense what’s happening ratings-wise the NBA this season at all. We’re happy to have it for now 11 more years including the final 10 of those years. And it will be — it is and will continue to be a marquee part of ESPN’s offering.”
Credit: ESPN
With ESPN Flagship set to debut later this year, the network will be more reliant on the NBA than ever. For now, Disney says they are not worried about the league’s poor ratings. Should they continue through the postseason, however, the company may change its tune.
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