The gray area of who’s in and who’s out is the holdup for now. Sources said the league -- which declined comment -- envisions a scenario in Year 1 where local telecasts for at least 25 teams are streamed and geofenced exclusively in one place. Meanwhile, perhaps four more franchises (minus the Raptors, who have an ironclad deal with Rogers Communications) could simulcast games in the hub and arrive full-time later in waves. That would make 29. The more teams, the merrier. Sources believe if the NBA can offer YouTube 29 clubs, it will want roughly $1.2B in return. Then, the league would siphon off rights fees to each team individually, based on market value. For instance, the Heat and Sixers would get a larger piece of the $1.2B pie than the Grizzlies or Pelicans but likely less than the Lakers and Knicks (two unknowns who we’ll get to).
This article originally appeared on Hoops Hype: NBA seeking $1.2 billion from YouTube for local streaming rights covering 29 teams
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