Warner Bros. Discovery is considering matching an offer for the media rights to a package of National Basketball Association (NBA) games as the league finalizes terms with potential media partners including Disney, NBCUniversal, and Amazon. Warner’s Turner Sports has been carrying NBA games for almost 40 years. The company has matching rights that allow them to match competing bids for the games they currently license from the NBA, but they haven’t seen the potential packages yet. Amazon has offered $1.8 billion per year for a slate of games, while NBCUniversal has offered about $2.5 billion per year. If the league signs agreements with these partners, Warner Bros. Discovery will have five days to match.
Warner Bros. Discovery is interested in a more affordable package of games considering their high debt load, making the package likely earmarked for Amazon appealing. This package includes All-Star games and conference finals that have aired on TNT. The NBA is looking for a robust streaming offering for a third package to extend the reach of its product. Warner Bros. Discovery owns cable network TNT and its streaming service, Max, but Max plans to tier its sports offerings, potentially diminishing the reach. CEO David Zaslav may be strategically focusing on the Amazon package to negotiate a better deal with the league or reach a settlement.
If Warner Bros. Discovery decides not to match any of the packages, they could use the saved money for other sports rights, like UFC. Zaslav views NBCUniversal as a competitor in the fight among legacy media companies and believes they may be overspending for the NBA based on ratings and subscriber value. Choosing not to match a potential Amazon package or standing down completely could open the way for the NBA to do business with NBCUniversal, which lost the league rights in 2002. NBCUniversal’s broadcast network and streaming service could be platforms for NBA games, offering expanded reach and potential for increased ratings.
Warner Bros. Discovery is considering ways to partner with the NBA to broadcast a package of games as the league plans its next media partners. However, it is unclear whether they will choose to match any of the offers or push for a side deal with the league. In addition to the potential deals with Disney, NBCUniversal, and Amazon, Warner Bros. Discovery recently struck a deal with ESPN to sublicense College Football Playoff games for airing on TNT and streaming on Max. Zaslav has indicated the company is prepared for various potential outcomes in the ongoing negotiations with the NBA.
Part of the negotiation stalemate may be attributed to Warner Bros. Discovery’s interest in a more affordable package given its significant debt. The company’s focus on a potential package appealing to Amazon may be strategic in order to get a better deal from the NBA or reach a settlement. The company also may leverage its rights to match competing bids for the current TNT games, potentially causing complications for deals with other partners. The ongoing negotiations will determine the future media landscape for NBA games as Warner Bros. Discovery, along with other potential partners, navigate the terms of the deals.
Overall, Warner Bros. Discovery’s decision on whether to match an offer for the media rights to NBA games will have significant implications for the league’s future media partnerships. The company’s matching rights and strategic considerations around their debt level and interest in an affordable package could impact the outcome of the negotiations. The potential partnerships with Disney, NBCUniversal, and Amazon, as well as the leverage provided by Warner Bros. Discovery, will shape the future of NBA broadcasting as the league seeks to extend its reach and secure favorable deals with media partners.
