NBA, NBC Agree on New Pact That Will Run Through 1997-98

NBC and the NBA have agreed on a new four-year contract, beginning with the 1994-95 season, in which both parties will share in the profits, signaling a change in the way the television networks do business with sports entities.

“A minimum amount will be paid by NBC to the NBA,” Commissioner David Stern said, “plus there is a targeted amount for the life of the deal. When that targeted amount is exceeded, the parties split what is left 50-50 in the last year of the deal.”

NBC paid $600 million in rights for the current NBA contract, which expires after the 1993-94 season, and will pay only about $150 million more in rights for the contract that will run through the 1997-98 season.

“The NBA realizes it is good business for a network to be healthy and for two parties to maximize the value of an enterprise together rather than assigning the risk to one party, which has been the history of recent negotiations,” said Ken Schanzer, executive vice president of NBC Sports. “This is the kind of deal we’ve been seeking for the past 10 years.”

Said Stern: “We believe that our network partners are entitled to earn a reasonable profit on our joint efforts.”