In what’s usually a fairly straight forward process, the NBA’s media rights deal has taken a rather bizarre turn in recent days, and could be one that ultimately ends up being contested in court.
Typically, media rights deals come down to 2 or 3 interested parties, and ultimately go to the highest bidder. After all, when you’re talking about figures in the tens of billions of dollars, only a handful of conglomerates can even entertain the idea of entering into the bidding process.
However, with the rise of streaming services and their deep pockets parent groups, that usually small pond has expanded to ever greater sizes in recent years. And with live sports being one of the few remaining streams that traditional television companies can rely on to generate viewers, negotiations for broadcasting rights have hit a fever pitch.
For some time, TNT appeared to be reluctantly accepting the fact that they would likely be priced out of the upcoming NBA broadcasting agreement. So much so that host Charles Barkley had begun making jokes about needing to find a new job, and getting his unemployment papers in order.
So it wasn’t a shock when the NBA announced that it had signed an 11 year media agreement with The Walt Disney Company (ESPN), NBC Universal, and Amazon Prime Video which would last through the 2035-36 season. A landmark deal which would bring in $76B in revenue for the league over the lifetime of the contract.
“Our new global media agreements with Disney, NBCUniversal and Amazon will maximize the reach and accessibility of NBA games for fans in the United States and around the world,” said NBA Commissioner Adam Silver in a prepared statement. “These partners will distribute our content across a wide range of platforms and help transform the fan experience over the next decade.”
“The digital opportunities with Amazon align perfectly with the global interest in the NBA,” Silver continued. “And Prime Video’s massive subscriber base will dramatically expand our ability to reach our fans in new and innovative ways.”
And everyone expected life to move on as it always had. Everyone except TNT it would appear.
As part of the previous agreement, TNT had a small window to attempt to improve their offer in order to match or exceed that of their competitors. Warner Bros. Discovery (the parent company of TNT) had 5 days to match one of the deals which the league had accepted.
Not surprisingly, they chose to target the Amazon package which was on the lower end of the price spectrum compared to the other two deals with Disney and NBC Universal. As a result, they offered the league $1.8B per season, which they believed would trump the offer presented by the Bezos led company.
Unfortunately for them, the NBA didn’t view things in quite the same manner. In a public statement released by the league, the NBA said:
“Warner Bros. Discovery’s most recent proposal did not match the terms of Amazon Prime Video’s offer and, therefore, we have entered into a long-term arrangement with Amazon,”
Once again, many considered the matter to be closed, and were ready to move on. So much so that ESPN and Amazon reportedly even began gauging the possibility of acquiring the “Inside the NBA” crew to use on their broadcasts.
This went over like a lead balloon with the TNT group.
Not long after the NBA released its statement, Warner Bros. Discovery responded in kind saying “We have matched the Amazon offer, as we have a contractual right to do, and do not believe the NBA can reject it…In doing so, they are rejecting the many fans who continue to show their unwavering support for our best-in-class coverage, delivered through the full combined reach of WBD’s video-first distribution platforms — including TNT, home to our four-decade partnership with the league, and Max, our leading streaming service.”
“We think they have grossly misinterpreted our contractual rights with respect to the 2025-26 season and beyond, and we will take appropriate action. We look forward, however, to another great season of the NBA on TNT and Max including our iconic ‘Inside the NBA.’ ”
In the aftermath of the seemingly lost broadcasting rights, shares of Warner Bros. Discovery dropped roughly 7%, which represents a nearly $1B loss in market value. As a result, the group is now reportedly beginning legal action against the NBA.
The NBA has yet to offer a public comment regarding any pending legal action, but things could get messy in a hurry for both Warner Bros. Discovery and NBA alike in the coming weeks.
Photo: Mavsfan28. This file is licensed under the Creative Commons Attribution-Share Alike 4.0 International license.