Amazon is Ready to Become an NBA Broadcast Partner, but Will WBD Let It Have a Chance?
Warner Bros. Discovery is still looking at ways to keep NBA games on TNT, and attempting to match Amazon’s bid for a package of rights might be its last shot.
There hasn’t been much news to report on the NBA front of late. Sure, the Boston Celtics just finished off the Dallas Mavericks in five games in the 2024 NBA Finals, but now that the season is over, fans are on the edge of their seats to see what will happen with the league’s national broadcast rights this time next year. The NBA would like that issue to have been resolved months ago, but indecision and second-guessing by Warner Bros. Discovery has caused the process to drag out. The New York Times reported earlier this week that WBD was “likely” to try and match Amazon’s bid for a package of games destined for its streaming service Prime Video, a move that could see all of the work that Amazon did to pursue the Association end up being for not.
Key Details:
- Amazon has a deal framework in place with the NBA to pay at least $1.8 billion for a package of regular season and playoff games.
- WBD has the right to match any offer made to the NBA by a third party.
- The outcome of negotiations could hinge on how the NBA’s current contract with WBD defines matching rights.
Frustration has been mounting regarding the NBA’s lack of clarity on its broadcasting arrangements following next season in many quarters. It finally spilled over for “Inside the NBA” host Charles Barkley, who announced last week that he planned to retire at the end of the 2024-25 season “no matter what happens” instead of awaiting the outcome of TNT’s negotiations with the league.
The biggest problem is that WBD doesn’t seem sure what it wants to do next. The company exited its exclusive negotiating period with the NBA in April without an agreement, as it didn’t want to agree to modifications to the package mandated by the league. But ESPN did agree to the framework of a deal with the NBA before exiting that period, and has reportedly locked up exclusive NBA Finals rights for the next decade as part of its package.
Soon after, NBC and Prime Video were reportedly ready to sign with the league, leaving WBD seemingly out in the cold. But TNT has the right to match any offer made to the league by a third party, which complicates matters still further.
Why Would WBD Try to Match Prime Video’s Offer for NBA Rights?
The NYT report that WBD was “likely” to try to match Prime Video’s offer was sourced from an unnamed person familiar with the company’s thinking. That possibility has been on the table for WBD for more than a month, and lawyers from the NBA and the company are likely trying to game out all of the legal arguments based on WBD’s contract with the league regarding what “matching rights” really mean.
Originally, it looked as if WBD may try to match NBC’s bid for the “B” package of NBA games, which includes regular season contests as well as playoff series, including conference finals in alternating years. But NBC bid $2.5 billion per season for that package, a figure which WBD CEO David Zaslav considers an overpay. Some experts think WBD’s matching rights wouldn’t be applicable even if it ponied up the cash, however, as NBC can offer more primetime broadcast windows than TNT and it can offer games on a broadcast channel, which has more reach than cable networks.
Going after Prime Video’s package instead would mean that WBD has to pay less for games, and could have an easier time if the discussion over what “matching rights” actually means ends up in court. But TNT’s last contract with the NBA was written in 2014, before sports streaming evolved into the product it is today, and the exact language could still allow the league and Amazon to make a deal while effectively sidestepping WBD’s right to match.
Amazon clearly sees itself as ready to step up into more sports streaming. Prime Video is the exclusive home of NFL “Thursday Night Football” games, and saw a 24% year-over-year increase in ratings for those streams in 2023. The streamer has also made deals to offer NASCAR races, boxing matches, NHL games in Canada and more to build up its live sports inventory in recent months, but there’s no doubting the NBA would be a big get for Amazon. Prime Video is also continuing to work on technology which will help it improve the quality of livestreams to enhance the sports viewing experience further.
If the NBA moves forward on signing and formalizing agreements with ESPN, NBC, and Amazon, it’s highly likely that WBD will try to sue on the basis of its matching rights. That could mean the resolution for NBA rights negotiations could be several months in the future, even though Amazon is ready to assume the mantle of NBA partner now.
Amazon Prime Video
Amazon Prime Video is a subscription video streaming service that includes on-demand access to 10,000+ movies, TV shows, and Prime Originals like “The Lord of the Rings: The Rings of Power,” “Jack Ryan,” “The Marvelous Mrs. Maisel,” “The Boys,” and more. Subscribers can also add third-party services like Max, Showtime, STARZ, and dozens more with Amazon Prime Video Channels. Prime Video also offers exclusive live access to NFL Thursday Night Football.