How NBA's new TV deal impacts Memphis Grizzlies, Jaren Jackson Jr.'s next contract

The Memphis Grizzlies possess one of the NBA's best young cores, but the price tag on that group is steadily becoming more expensive. Ja Morant and Desmond Bane became the two highest-paid players in franchise history in the previous two summers, and payday will soon come for other key members of the Grizzlies.

With the NBA's announcement last week of a new television deal next summer that will continue the league's financial growth, Memphis is positioned to benefit. The new TV deal goes into effect for the 2025-26 season with coverage from the Walt Disney Company (ABC and ESPN), NBCUniversal (NBC and Peacock) and Amazon’s Prime Video streaming service.

This new 11-year deal reportedly worth $76 billion will lead to growth in the salary cap and other revenue opportunities.

Memphis is entering an era where it has identified core players who will be on nine-figure contracts for the foreseeable future. The potential financial boom stands as an area Memphis will benefit, but there are many other ways the league's new deal will impact the Grizzlies.

More national TV games for Memphis Grizzlies

League-wide coverage will greatly increase under the new deal. The NBA estimates that approximately 75 games will now be available on broadcast TV, which is up from at least 15 in the current deal. In total, ESPN’s services will distribute 80 games in the regular season, NBC’s partners will air up to 100 games and Prime Video will get 66.

All of this means more potential air time for Memphis, which could be a boom locally and nationally. Morant has already become a household name with one of the top selling jerseys in the NBA. Since Memphis doesn’t have the market size of teams like the Los Angeles Lakers, Golden State Warriors or New York Knicks, the opportunity for global fans to see Morant and the Grizzlies’ fast-pace brand of basketball could do wonders for Memphis.

Jaren Jackson Jr.'s impending deal and a salary cap spike

Morant and Bane have already received maximum contract extensions. Jaren Jackson Jr. could be next up, and he’s extension-eligible next offseason when the new TV deal comes into play. In September 2023, ESPN reported that Jackson could be eligible for a five-year supermax deal worth $318 million next summer. That would currently make him the highest paid player in NBA history. Under the collective bargaining agreement, Jackson will be eligible sign a max extension worth 30% of the Grizzlies' salary cap in 2025. He must make an All-NBA team or win Defensive Player of the Year to meet the supermax criteria for a contract worth 35% of the team's salary cap this upcoming season.

Memphis will receive a sizable tax bill when that time comes, but the TV deal should help stomach the cost of carrying three stars on max deals. According to the CBA, the salary cap can increase by a maximum of 10%. Since the NBA’s revenue will far exceed that number, the  new TV deal will allow for the cap to have yearly increases of the maximum 10% to spread the money out. An increased salary cap will move the first and second apron numbers, which could help Memphis reasonably afford to keep its expensive core together for years to come.

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Regional sports network future?

The future of regional sports networks remain in flux. Diamond Sports Group, the parent company of Bally Sports, entered a Restructuring Support Agreement in 2024 to clear Diamond from bankruptcy while Amazon made an investment to provide services on Prime Video. Bally Sports filed for Chapter 11 bankruptcy in March 2023.

Knicks owner James Dolan is one of the individuals questioning the future of RSN’s after the new TV deal. Dolan called the RSN model “unviable" in a letter obtained by ESPN that was shared with the league's board of governors.

On Monday, DSG reached a deal with Xfinity that will allow customers to access Bally Sports games through the cable provider that goes into effect on Aug. 1. Xfinity is one of the largest cable providers in the country and the deal bodes well for the future of regional sports networks.

Damichael Cole is the Memphis Grizzlies beat writer for The Commercial Appeal. Contact Damichael at damichael.cole@commercialappeal.com. Follow Damichael on X, formerly known as Twitter, @DamichaelC.

This article originally appeared on Memphis Commercial Appeal: NBA new TV deal will impact Jaren Jackson Jr., Memphis Grizzlies