Warner Bros. Discovery is poised to enter the National Basketball Association (NBA) media rights arena. The NBA has sent Warner Bros. Discovery the official terms of its proposed new media rights contacts, giving the media company a five-day window to match a package of broadcasting rights. The terms include deals with Disney, Comcast’s NBCUniversal, and Amazon, totaling $76 billion over 11 years starting from the 2025-26 season. The package also encompasses WNBA games, accounting for $2.1 billion of the total sum.
Warner Bros. Discovery intends to match the package of games designated for Amazon, which includes playoff games and the in-season tournament. Amazon signed a deal with the NBA to pay $1.8 billion per year for its package. However, it remains uncertain what will happen once Warner Bros. Discovery formally announces its intention to match. The NBA may have the right to reject Warner Bros. Discovery’s matching rights, potentially leading to a legal battle.
Warner Bros. Discovery’s Turner Sports has been a long-standing broadcast partner of the NBA. The company plans to argue that its matching rights, which stem from its current media rights deal, apply to Amazon’s package of games, even though it is primarily for a streaming-only service. Warner Bros. Discovery owns Max, a competitor to Amazon’s Prime Video, but with fewer subscribers.
Losing the NBA would be a significant blow for Warner Bros. Discovery, potentially resulting in a loss of around $600 million in profit from advertising and a decrease in cable affiliate fees. Media and entertainment analyst Peter Supino from Wolfe Research highlighted the impact of losing the NBA on Warner Bros. Discovery’s shares, which have fallen 23% this year.
NBA Commissioner Adam Silver expressed the desire to bring the negotiations to a swift conclusion, acknowledging the uncertainty faced by Warner Bros. Discovery employees who work on NBA programming. He emphasized the importance of resolving the situation promptly to provide clarity for those involved.
The outcome of Warner Bros. Discovery’s bid to match the media rights deal remains uncertain, but the stakes are high for both parties. The NBA is seeking to secure lucrative contracts, while Warner Bros. Discovery is eager to retain its long-standing partnership and avoid significant financial losses. As the five-day period unfolds, the future of NBA media rights hangs in the balance.
