Warner Bros. Discovery is currently considering whether to match an offer for the media rights to a package of NBA games. However, sources suggest that their focus may be on securing a potential package with Amazon rather than Comcast’s NBCUniversal. Warner Bros. Discovery, along with Disney, is one of the two incumbent holders of NBA rights, with Warner’s Turner Sports having carried NBA games for nearly 40 years.
The NBA is reportedly close to finalizing agreements with Disney, NBCUniversal, and Amazon for three different packages of games. If Warner Bros. Discovery does not reach a side agreement with the league, they will have the opportunity to leverage their matching rights, which were part of their previous deal with the NBA. These matching rights allow Warner Bros. Discovery to match a competing bid for the games they currently license.
However, Warner Bros. Discovery has not yet seen the three potential packages because official agreements have not been signed. The company has been working with their lawyers to determine how the matching process would work if the league were to split their current package into deals for both NBCUniversal and Amazon.
Amazon has reportedly offered $1.8 billion per year for a slate of games, while NBCUniversal has offered about $2.5 billion per year. Warner Bros. Discovery has five days to match any signed offers once they receive them. It remains uncertain whether Warner Bros. Discovery will choose to match any of the packages or instead push for a side deal with the league.
Warner Bros. Discovery’s interest in the package likely earmarked for Amazon is due to their high debt and desire for a more affordable option. This package includes All-Star games and conference finals games, which have previously aired on TNT, a cable network owned by Warner Bros. Discovery. The NBA wants to extend its reach beyond cable TV and is seeking a robust streaming offering as a third package.
David Zaslav, CEO of Warner Bros. Discovery, may be strategically focusing on Amazon to potentially get a settlement from the league. The company’s recent rights agreements for College Football Playoff games and NASCAR races have put Zaslav in a position where he is willing to lose the NBA if the cost is too high. Zaslav believes that NBCUniversal is overspending for the NBA based on ratings and potential subscriber value for a subscription streaming service.
NBCUniversal, seen as a direct competitor by Zaslav, lost league rights in 2002 but may have the opportunity to reclaim them. They have reached out to John Tesh, the owner of the old “NBA on NBC” theme song, expressing interest in bringing it back if they secure the media rights. NBCUniversal’s broadcast network, NBC, and streaming service, Peacock, could both become platforms for NBA games.
In conclusion, Warner Bros. Discovery is considering whether to match an offer for NBA media rights, but their focus may be on securing a potential package with Amazon rather than NBCUniversal. The company’s interest in an Amazon package is driven by their desire for a more affordable option due to their high debt. The NBA is close to finalizing agreements with Disney, NBCUniversal, and Amazon, and Warner Bros. Discovery has the opportunity to leverage their matching rights if they choose. However, it remains uncertain which packages Warner Bros. Discovery will choose to match or if they will pursue a side deal with the league.
