Take-Two Interactive Software, makers of the NBA 2K video game, reportedly will pay up to $1.1 billion over the next seven years to the NBA and NBPA. Each update to the series of basketball games is released annually, and NBA 2K18 set a record with 10 million units sold.
The NBA’s esports circuit—the NBA 2K League—is a joint venture of the league and Take-Two Interactive. The game’s realism is a driving force behind its success, so the game relies on licensing league and players association intellectual property, driving the potentially 10-figure fee. The Wall Street Journal first reported the value of the agreement.
“The NBA has been an outstanding partner throughout the history of the NBA 2K franchise, contributing significantly to its unparalleled success and the ability to grow its audience around the world across a myriad of platforms and offerings,” said Strauss Zelnick, Take-Two chairman and CEO, in a statement. “We’re thrilled to be in business with [commissioner Adam Silver] and the entire team at the NBA, and enter into the longest-ever partnership extension between our organizations. Together, we’re confident that we will continue to find new and innovative ways to captivate and engage basketball fans, and expand further the success of the NBA 2K brand.”
The most recent edition, NBA 2K19, was released back in September. Over the past 17 years, NBA 2K games have sold more than 86 million copies, according to a Metacritic stat cited in the news release. The 2K canon of basketball games includes NBA 2K Playgrounds 2, NBA 2K Mobile, and NBA 2K League, as well as NBA 2K Online, and NBA 2K Online 2, which collectively have more than 40 million registered users. It is also the No. 1 online PC sports game in China. Take-Two additionally publishes Grand Theft Auto and Civilization, among other popular video games.
“An entire generation of basketball fans engage and connect with NBA teams and players through NBA 2K,” Silver said in a statement. “We are grateful to extend our partnership with Take-Two and the NBPA to build on the enormous popularity of the NBA 2K franchise and the continued global growth of basketball.”
Silver announced the first pick of last year’s inaugural NBA 2K League draft. Knicks Gaming won the first season’s championship.
“NBA 2K has become an important part of the NBA culture both for our players and fans,” said NBPA executive director Michele Roberts in a statement. “Kudos to Think450 for successfully negotiating this extension on the NBPA’s behalf. We look forward to continuing this partnership with the League and Take-Two Interactive.”
Think450 is a wholly owned subsidiary of the NBPA and manages the players’ group licensing rights.
SportTechie Takeaway
This billion-dollar deal portends to how lucrative the video game and esports industry can be. For perspective’s sake, NPD Group reported that overall video game spending in the U.S. during the third quarter of 2018 alone reached $9.1 billion and that NBA 2K was the top-selling sports title. The WSJ cited a source noting that the final value is dependent on a percentage of sales but added that this is more than double the previous contract.