The Memphis Grizzlies moved their local broadcast rights to DAZN for the 2024-25 season, becoming the streaming platform's first dedicated NBA franchise partner. The deal replaces the team's previous arrangement with Bally Sports Southeast and lands as regional sports networks continue their managed decline. Financial terms were not disclosed, but people familiar with mid-market NBA rights deals estimate the annual value between $18 million and $25 million, depending on subscriber thresholds and revenue share structures.
DAZN now carries all non-nationally televised Grizzlies games—roughly 70 contests—at a monthly subscription price of $24.99 or an annual rate of $224.99. The service includes on-demand replays, condensed game recaps, and multi-camera angles, features that distinguish it from traditional linear feeds. Memphis becomes DAZN's test case for whether a platform built on combat sports and international soccer can monetize a mid-market NBA property without the reach of a Bally or NBC Sports Regional.
The timing matters because Memphis sits in the 51st-largest media market in the United States, a scale where RSN economics have collapsed but pure streaming economics remain unproven. The franchise averaged 1.8 million viewers across Bally Sports Southeast last season, a figure that represented 0.6% of the network's total reach. Under the new structure, DAZN must convert roughly 30,000 to 40,000 annual subscribers in the Memphis DMA to match the previous rights fee, assuming standard revenue splits. That requires penetration of approximately 4% to 5% of television households in the market, a benchmark that exceeds most direct-to-consumer sports services outside tier-one cities.
For sponsors, the shift introduces uncertainty around inventory guarantees. Brands that purchased courtside signage or in-game integrations on Bally now face a smaller but theoretically more engaged audience. DAZN's user interface allows for dynamic ad insertion and deeper demographic targeting, which appeals to performance marketers but complicates the flat CPM deals that underpin most NBA sponsorship budgets. At least two Memphis corporate partners have requested addendums to their contracts to reflect the new distribution model, according to someone who reviewed the documents.
The Grizzlies join a handful of teams exploring life beyond the RSN bundle, including the Phoenix Suns, who launched a direct subscription offering in partnership with Gray Television, and the Dallas Mavericks, who are preparing a similar move for the 2025-26 season. What separates Memphis is the reliance on a third-party platform rather than a team-controlled service, a structure that sacrifices margin for reach. DAZN operates in 200 countries and holds rights to UEFA Champions League in select markets, giving the Grizzlies a distribution footprint that extends beyond their regional footprint. Whether that international optionality translates to incremental revenue depends on DAZN's ability to bundle the product into existing soccer and boxing packages.
The league office is watching. NBA executives view Memphis as a canary for what happens when mid-tier teams abandon the RSN model without the safety net of a local broadcast partner or venture capital backing. If DAZN hits its subscriber targets, expect similar deals in markets like New Orleans, Charlotte, and Indiana within 18 months. If it misses, the Grizzlies will likely return to a hybrid model that pairs streaming with over-the-air broadcast, a structure that mirrors what baseball's Kansas City Royals implemented last season.
DAZN is also negotiating with at least one additional NBA franchise for the 2025-26 season, according to two people with knowledge of the talks. The platform is prioritizing teams in markets where Bally Sports or NBC Sports Regional have already exited or are expected to, creating a narrow window for DAZN to lock in rights before teams explore proprietary solutions. The company declined to comment on future deals.
Watch for Memphis's Q2 subscriber disclosure, expected in January, which will reveal whether the service is tracking toward profitability or requiring the team to cover shortfalls. Also watch DAZN's broader NBA pitch, likely to surface at the MIT Sloan Sports Analytics Conference in March, where the company is expected to present case data to other mid-market franchises. And watch the Mavericks, whose ownership group has been vocal about building a team-owned streaming service but may pivot to a DAZN partnership if Memphis demonstrates proof of concept.
The takeaway
Memphis becomes DAZN's NBA test case; success requires **4-5% household penetration** in a mid-market where RSN economics failed but streaming remains unproven.
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