Welcome to Extreme Investor Network, your go-to source for all things business news and updates. Today, we’re diving into the latest developments in the world of sports media rights negotiations, specifically in the National Basketball Association (NBA).
The NBA has recently sent official terms of its proposed new media rights contracts to Warner Bros. Discovery, initiating a five-day period where the media company can choose to match a package of broadcasting rights. This deal includes agreements with Disney, Comcast’s NBCUniversal, and Amazon for three different packages of games, totaling a whopping $76 billion over 11 years, starting from the 2025-26 season.
Warner Bros. Discovery is currently reviewing the terms and intends to match a package of games that Amazon has been slated for, which includes playoff games and the in-season tournament. The competition for broadcasting rights is fierce, with Amazon signing a deal worth $1.8 billion per year for its package.
What Comes Next?
As Warner Bros. Discovery prepares to officially announce its intention to match the package, the next steps remain unclear. The NBA may have the right to reject Warner Bros. Discovery’s matching rights, potentially leading to legal disputes. Warner Bros. Discovery’s Turner Sports, a long-standing broadcast partner of the NBA, is set to argue for its matching rights to apply to Amazon’s game package, despite it being earmarked for a streaming-only service.
In the midst of these negotiations, Turner Sports’ Max platform competes with Amazon’s Prime Video, with Max having around 100 million subscribers compared to Prime’s 200 million. The streaming rights in Amazon’s package are global in nature and could impact the distribution of NBA games worldwide.
Additionally, TNT, owned by Warner Bros. Discovery, is home to the popular NBA studio show “Inside the NBA” featuring basketball legends like Ernie Johnson, Charles Barkley, Kenny Smith, and Shaquille O’Neal. Barkley has hinted at retirement from the show after next season, regardless of the outcome of the media rights deal.
These negotiations are crucial for Warner Bros. Discovery, as losing the NBA could result in significant financial losses and a decrease in profits. Analysts have estimated potential ramifications for the company, highlighting the importance of reaching a resolution swiftly.
Stay tuned to Extreme Investor Network for more updates on this evolving story and other compelling business news.
Disclosure: Comcast’s NBCUniversal is the parent company of CNBC.