Title: Warner Bros. Discovery Considers Matching Offer for NBA Rights as League Finalizes Terms
As the NBA moves closer to finalizing media rights deals for its games, Warner Bros. Discovery is considering matching an offer for a package of National Basketball Association games. However, the focus may be on an Amazon package rather than games slated for Comcast’s NBCUniversal, according to sources familiar with the matter.
Warner Bros. Discovery, one of the current holders of NBA rights, is navigating a potentially messy renegotiation process. The company continues to explore ways to partner with the NBA to broadcast a package of games as the league plans its next media partners.
The NBA is nearing agreements with Disney, NBCUniversal, and Amazon for three different packages of games. Warner Bros. Discovery has matching rights that would allow it to match a competing bid for the games it currently licenses from the NBA. If the league proceeds without a side agreement with Warner Bros. Discovery, the company’s CEO, David Zaslav, will have the opportunity to leverage these matching rights.
Amazon has reportedly offered $1.8 billion a year for a slate of games, while NBCUniversal has offered about $2.5 billion per year. Warner Bros. Discovery will have five days to match if and when the league signs agreements with its potential media partners.
In considering its options, Warner Bros. Discovery may choose not to match any of the packages or seek a side deal with the league for a smaller package of games. The company’s focus on Amazon’s package could be a strategic move to secure a settlement from the league.
The NBA is seeking to expand its reach beyond cable TV with robust streaming offerings. Warner Bros. Discovery’s ownership of cable network TNT and streaming service Max puts it in a unique position to potentially offer a compelling streaming package.
David Zaslav’s focus on Amazon and potential hesitation to match NBCUniversal’s offer indicate a strategic outlook on the company’s behalf. The decision to prioritize a more affordable package of games could shift Warner Bros. Discovery’s investment focus to other sports, such as UFC.
NBCUniversal’s potential overspending for NBA rights presents a competitive advantage for Warner Bros. Discovery. If the company chooses not to match a potential Amazon package, it could pave the way for the NBA to partner with NBCUniversal, which lost league rights in 2002.
The dynamics of the ongoing negotiations between the NBA, media companies, and Warner Bros. Discovery highlight the complexities of securing lucrative media rights in the ever-evolving landscape of sports broadcasting. Stay tuned to Extreme Investor Network for more updates on business news and media rights negotiations.