Podcast Summary: The Dan Le Batard Show with Stugotz
Episode: Hour 1: Do The NBA's Ratings Matter?
Release Date: February 20, 2025

Introduction

In this episode of The Dan Le Batard Show with Stugotz titled "Do The NBA's Ratings Matter?", hosts Dan Le Batard, Stugotz, and co-hosts Chris Cody, Greg Cody, Mike Ryan, and Billy engage in a deep dive into the significance of NBA ratings in today’s evolving sports media landscape. Filmed from the Elser Hotel in Downtown Miami, the discussion navigates through the complexities of sports broadcasting, media rights deals, and the shifting consumption patterns of basketball fans.

Main Discussion: The Relevance of NBA Ratings

1. Ratings vs. Business Revenue

The conversation primarily centers around whether declining NBA ratings genuinely impact the league's financial health. Chris Cody introduces the argument that despite fluctuations in viewership, the NBA's robust media rights deals ensure financial stability.

• Chris Cody (15:13):
  "When we're having this conversation about rating slipping in basketball, they don't matter. The guaranteed money that NBA now has, it doesn't matter if you watch or not."

He further emphasizes that the NBA's substantial television contracts provide a cushion that decouples immediate viewership numbers from the league's revenue streams.

• Chris Cody (15:30):
  "The business of it gets the guarantee. So we spend so much time talking about the ratings and the ratings don't hurt the business in any way. The money's all guaranteed."

2. Insights from the Sporting Class Podcast

Chris Cody references insights from the Sporting Class podcast, featuring Pablo Torre, John Skipper, and David Sampson, to bolster the argument that the NBA's business model is resilient against rating declines.

• Chris Cody (15:42):
  "They flew in Darren Revel yesterday to have a business off with David Sampson... the business of basketball... they have those rich people competing for... It's all about the show first because you know..."

He highlights that top executives believe the NBA's financial framework is robust enough to withstand fluctuations in viewership, attributing this resilience to lucrative media rights deals.

3. The Shift to Social Media and Streaming

The hosts discuss the paradigm shift from traditional TV viewership to digital and social media consumption, suggesting that the NBA is transitioning into a "social media sport."

• Chris Cody (16:08):
  "They have gotten all the television money. Cuz all of these rich people are competing for... they... become a social media sport... You don't have to be watching late night television right now at the appointed time in order for late night television to be successful because it's traveling through your social media feed."

This perspective underscores the idea that real-time engagement and digital presence are becoming more critical than scheduled TV broadcasts.

4. Counterpoints and Future Concerns

Greg Cody offers a counterpoint, expressing concern that while current media deals are favorable, declining ratings could eventually erode the NBA’s financial standing.

• Greg Cody (15:30):
  "But eventually it's going to hurt that business."

He warns that sustained low ratings might influence future media contracts and the league's overall marketability, despite the current financial assurances.

5. Women's Professional Basketball League Example

Mike Ryan introduces the Women's Professional Basketball League (WPBL) as an example of a league that thrives independently of large fanbases, relying primarily on TV visibility.

• Mike Ryan (18:26):
  "The women's professional basketball league new in Miami here, unrivaled, which is essentially a made for TV league that doesn't worry much about fans at all."

This example serves to illustrate that leagues can sustain themselves financially without relying heavily on in-person attendance, aligning with the NBA's current trajectory.

6. Expert Opinions from Jessica

A guest named Jessica provides a contrasting viewpoint, asserting that despite minor rating dips, the NBA's recent media rights deals are a testament to the league's strong market position.

• Jessica (21:03):
  "The league is fine. People are watching the games. People care. So I think the league is in excellent shape. They had to deal with this."

She argues that the magnitude of the NBA's media deals outweighs the concerns over fleeting rating changes, reinforcing the league's financial health.

Additional Discussions

1. The 'Hard Network Out' Segment

Early in the episode, the hosts humorously discuss the "Hard Network Out," a forced segment ending due to ESPN's broadcasting constraints. Greg Cody's obliviousness to the show's timing becomes a running joke, adding a light-hearted layer to the conversation.

• Greg Cody (04:05):
  "I think at one point, Dan wore a clock on his head and Greg still didn't know."

2. All-Star Game Ratings

The hosts touch upon the NBA All-Star Game's declining viewership, debating whether it should be a cause for concern given the league's substantial revenue streams.

• Greg Cody (28:06):
  "But the two least watched and lowest rated all star games in NBA history were the one from last weekend and the one before that. Is Adam Silver not supposed to be concerned about that."

• Chris Cody (28:12):
  "It's not that I cannot burp or fart. It's that if I burp or fart, my body has consumed something it should not consume."

(Note: The transcript seems to have a misalignment here; ensure accurate timestamps and context.)

Conclusion and Takeaways

The episode concludes with the consensus that while NBA ratings have experienced some decline, the league's financial framework—bolstered by lucrative media rights deals—renders immediate concerns about viewership less critical. However, the hosts acknowledge that sustained rating drops could pose challenges in the long term, especially as media consumption continues to evolve towards digital and social platforms.

Key Takeaways:

• Financial Resilience: The NBA's substantial media rights deals provide a financial buffer that mitigates the impact of fluctuating ratings.

• Shift to Digital: The increasing importance of social media and streaming platforms suggests a transformation in how audiences engage with basketball, potentially reducing reliance on traditional TV viewership.

• Long-Term Concerns: Despite current financial strength, there is an acknowledgment that persistent rating declines could affect future media contracts and the league's overall dynamics.

Notable Quotes:

• Chris Cody (15:13):
  "The guaranteed money that NBA now has, it doesn't matter if you watch or not."

• Greg Cody (15:30):
  "But eventually it's going to hurt that business."

• Jessica (21:03):
  "The league is fine. People are watching the games. People care. So I think the league is in excellent shape."

• Chris Cody (16:08):
  "It's a social media sport now. You don't have to be watching late night television right now at the appointed time in order for late night television to be successful because it's traveling through your social media feed."

This episode provides a comprehensive exploration of the relationship between NBA ratings and the league's financial health, offering listeners valuable insights into the evolving landscape of sports media consumption.