Charter Communications is reconsidering its relationship with Spectrum SportsNet, the regional network that carries Lakers games under a deal running through 2032. The development comes as Joshua Kushner and Bob Iger prepare to assume control of the franchise, placing renewed attention on the team’s local television revenue and distribution.
Key Takeaways
- Charter Communications has discussed exiting or changing its relationship with Spectrum SportsNet.
- The Lakers’ current local television agreement runs through 2032 and provides about $200 million annually.
- Charter retained investment bankers to seek a buyer for Spectrum SportsNet.
- Joshua Kushner and Bob Iger are the prospective new Lakers owners.
- Charter completed its $34.5 billion acquisition of Cox Communications on Aug. 20.
Charter Reconsiders Its Spectrum SportsNet Relationship
Charter Communications is reviewing its relationship with Spectrum SportsNet, the regional sports network that carries Lakers games for local viewers. The company has discussed exiting the relationship, according to the reported plans, while the Lakers remain under a long-term agreement with Spectrum.
The Lakers are scheduled to enter the 15th year of their television agreement with the cable company this fall. The deal is valued at $3 billion and provides the team with about $200 million in annual revenue.
Charter has also taken steps to find a potential buyer for Spectrum SportsNet. The company retained investment bankers to seek a buyer for the El Segundo-based network, which it operates alongside SportsNet LA, the Dodgers-owned channel.
The potential change would affect a television arrangement that has provided the Lakers with a major source of local media revenue. Charter executives have acknowledged that the economics of regional sports networks have become difficult for cable companies.
Charter Chief Executive Chris Winfrey said the regional sports network business is significantly challenged. He also said Spectrum has remained committed to the Lakers and Dodgers while the company considers possible solutions for its local sports channels.
The Lakers and Thrive Capital, the investment firm led by prospective Lakers owner Joshua Kushner, did not comment on the situation.
The television issue follows the proposed ownership change announced earlier this month. LAWire previously reported on the Lakers ownership deal valued at $12.5 billion, which would put Kushner and former Disney CEO Bob Iger at the head of the franchise.
Lakers’ Local Television Revenue
The Lakers’ agreement with Spectrum currently runs through 2032. The contract provides about $200 million per year to the team, making the television relationship a direct financial consideration for the franchise.
The agreement was established when the Lakers entered into a long-term deal with what was then Time Warner Cable. Charter later acquired Time Warner Cable and took over the operation of Spectrum SportsNet.
The arrangement has given local Lakers games a dedicated regional television outlet while generating revenue for the team. Any change to Charter’s relationship with the network therefore involves both distribution and the financial structure surrounding Lakers broadcasts.
Lakers’ Current TV Agreement Runs Through 2032
The existing Lakers television contract remains in place through 2032. The reported uncertainty concerns Charter’s future relationship with Spectrum SportsNet and its desire to find a different economic arrangement for the regional sports network business.
Charter has said it wants to find solutions that improve the economics of its relationships with the Lakers and Dodgers. Winfrey said the company believes the local teams remain important to its customers while acknowledging that the current agreements have not produced favorable economics for Charter.
The company has lost hundreds of millions of dollars operating its local sports channels, according to the reported information. The financial pressure has prompted Charter to examine its position in the regional sports network business.
The Lakers’ television agreement is separate from the Dodgers’ arrangement with Spectrum. The Dodgers’ agreement extends to 2038, while the Lakers contract expires earlier in 2032.
The two Los Angeles teams have nevertheless been connected through the local sports television infrastructure. Charter operates Spectrum SportsNet with the Dodgers-owned SportsNet LA, giving the company a significant role in distributing professional sports to viewers across the region.
Spectrum has also introduced a streaming-only option for Dodgers games, while Lakers games are available through a Spectrum streaming application. Those options give the company ways to distribute local sports without relying entirely on traditional cable television subscriptions.
The Lakers also remain closely tied to the downtown Los Angeles sports and entertainment ecosystem. LAWire previously reported that Crypto.com Arena will host LA28 gymnastics during the 2028 Olympic Games; the venue is also home to the Lakers.
Streaming Changes Affect Regional Sports Networks
The regional sports network business has faced pressure as consumers move away from traditional cable packages. Lower-cost streaming services have changed how many viewers receive entertainment and sports content.
The shift has affected the economics of regional sports channels because cable subscriptions have historically provided a large distribution base for those networks. Sports rights fees have also contributed to higher cable bills, making traditional packages less attractive to some consumers.
The NBA has recognized the importance of reaching viewers through digital platforms. The league has begun planning for a centralized streaming platform that could bring domestic teams together under one service or distribution arrangement.
A centralized model could change the role of individual local television agreements. Large-market teams such as the Lakers have benefited from lucrative local rights arrangements, while a centralized streaming system could distribute revenue differently among teams.
Spectrum SportsNet Faces Pressure From Declining Cable Viewership
Spectrum SportsNet is part of a regional sports network business facing declining cable viewership. Charter’s consideration of a sale reflects the financial pressure surrounding the operation of local sports channels.
Charter retained the Raine Group, a boutique investment bank, to find a buyer for the Lakers channel. The company has not publicly disclosed a final buyer or a completed transaction for the network.
The reported review also comes after other regional sports networks encountered financial problems. Main Street Sports Group, which operated FanDuel-branded channels that previously carried the Bally Sports name, announced plans to cease operations, affecting the distribution arrangements for several professional teams.
The NBA’s current national television agreements provide another source of revenue for its teams. Those agreements distribute games through ESPN, ABC, Amazon Prime Video, NBC and Peacock.
The national agreements provide more money than the previous NBA television contract. That additional national revenue has reduced the extent to which teams depend on local rights payments, according to the reported analysis.
The Lakers remain one of the teams with a significant local television arrangement. The existing Spectrum agreement therefore continues to provide a substantial annual payment even as Charter evaluates whether the regional network remains economically viable.
The television question is separate from the team’s prospective ownership transition, but the two developments are occurring at the same time. Joshua Kushner and Bob Iger are preparing to assume control of the franchise, giving the incoming ownership group a local television agreement that remains in place while Charter evaluates its future with Spectrum SportsNet.
Kushner and Iger Prepare to Take Control of the Lakers
Joshua Kushner and former Walt Disney Co. chief executive Bob Iger are the prospective new Lakers owners. Their planned takeover places the team’s television arrangement among the business matters facing the incoming ownership group.
Iger has experience with sports media economics from his time leading Disney, which included oversight of ESPN and ABC. His background gives the prospective ownership group direct familiarity with television distribution and sports media rights.
Kushner’s investment firm, Thrive Capital, is also involved in the prospective ownership group. The firm declined to comment on the Spectrum SportsNet situation.
The Lakers’ current agreement means the prospective owners would inherit a local television contract that remains active through 2032. Charter’s review of the regional sports network business could affect how that relationship develops during the remaining contract period.
Charter has said it wants to find a better long-term arrangement for its relationships with the Lakers and Dodgers. The company has also said it remains committed to the local teams while acknowledging the financial difficulties associated with the regional sports network model.
The prospective ownership change also follows a separate business leadership change within the Lakers organization. LAWire reported earlier this year that the Lakers appointed a new business president, with longtime Dodgers executive Lon Rosen taking over the role from Tim Harris.
Charter’s Cox Acquisition Expands Its Southern California Footprint
Charter completed its $34.5 billion acquisition of Cox Communications on Aug. 20. The transaction makes Spectrum a larger internet and television provider across Southern California, extending from Santa Barbara to the Mexican border.
The Cox acquisition gives Charter a larger customer base in the region while the company is also reviewing the economics of its local sports networks.
The expanded Southern California footprint gives Charter a substantial connection to households that consume local television and sports content. The company’s decisions about Spectrum SportsNet therefore affect a network operating within a larger television and internet business.
Charter’s review of Spectrum SportsNet does not currently change the Lakers’ existing contract, which remains scheduled to run through 2032. The company is instead seeking a different arrangement for a regional sports network business that it has described as financially challenged.
The Lakers television agreement remains a key part of the franchise’s local media business. The prospective ownership change, Charter’s review of Spectrum SportsNet and the company’s expanded Southern California operations place the existing agreement within a broader set of business decisions involving the team’s television distribution and revenue.
Frequently Asked Questions
What is the Lakers TV deal with Spectrum?
The Lakers have a long-term television agreement with Spectrum that carries games on Spectrum SportsNet. The contract is valued at $3 billion and runs through 2032.
How long does the Lakers-Spectrum agreement run?
The current Lakers television agreement runs through 2032. The reported review concerns Charter’s relationship with Spectrum SportsNet rather than an announced end to the Lakers contract.
How much revenue does the Lakers TV deal provide?
The agreement provides the Lakers with about $200 million in annual revenue, according to the reported details of the contract.
Who are the prospective new Lakers owners?
Joshua Kushner and former Walt Disney Co. chief executive Bob Iger are the prospective new Lakers owners. Kushner’s investment firm, Thrive Capital, is involved in the ownership group.
What is happening to Spectrum SportsNet?
Charter Communications has discussed exiting or changing its relationship with Spectrum SportsNet and retained investment bankers to seek a buyer for the network. Charter has said it remains committed to the Lakers and Dodgers while seeking a different long-term economic arrangement.
