Warner Bros. Discovery Considers Matching Offer for NBA Media Rights
In the midst of the ongoing negotiations for media rights to NBA games, Warner Bros. Discovery is considering matching an offer to broadcast a package of games. The focus, however, may be on a potential deal with Amazon rather than games slated for Comcast’s NBCUniversal.
Warner Bros. Discovery, a longtime holder of NBA rights through Turner Sports, is seeking ways to partner with the NBA as the league finalizes agreements with Disney, NBCUniversal, and Amazon for various packages of games. The company holds matching rights as part of its existing deal with the NBA, allowing it to match any competing bids for the games it currently licenses. This puts the company in a strategic position as it navigates the changing landscape of NBA broadcasting.
Amazon has reportedly offered $1.8 billion annually for a package of games, while NBCUniversal has offered about $2.5 billion per year. The NBA is looking to expand its reach beyond traditional cable TV, with a focus on streaming offerings. Warner Bros. Discovery’s ownership of both cable network TNT and streaming service Max gives it a unique advantage in the negotiations.
CEO David Zaslav has indicated that the company is prepared for various outcomes in the negotiations, including potential lawsuits if the NBA deal with another partner. The company’s interest in a more affordable package of games, given its significant debt, makes the Amazon package particularly appealing. However, there is also speculation about the possibility of a settlement or a smaller package of games in a side deal with the league.
Zaslav’s strategic focus on Amazon as a potential partner may ultimately influence the outcome of the negotiations. The company’s recent deals in college football and NASCAR rights indicate a willingness to invest in sports programming, but not at any cost. The company could use the money saved from not acquiring NBA rights for other sports properties, such as UFC.
In the competitive landscape of media rights negotiations, Warner Bros. Discovery is positioning itself strategically to secure a favorable deal with the NBA. Whether it chooses to match an offer from Amazon, strike a side deal with the league, or walk away from the negotiations entirely, the company’s actions will have a significant impact on the future of NBA broadcasting.
Additionally, NBCUniversal’s potential bid for NBA rights presents a direct competitive challenge for Warner Bros. Discovery. Zaslav views NBCUniversal as a key competitor among legacy media companies, and the outcome of the negotiations could have far-reaching implications for both companies. If NBCUniversal ends up overpaying for NBA rights, Warner Bros. Discovery sees an opportunity to gain a competitive advantage in the market.
As the negotiations unfold, the future of NBA broadcasting remains uncertain. Warner Bros. Discovery’s strategic moves and decision-making will play a crucial role in shaping the next chapter of NBA media rights agreements.
