Warner Bros. Discovery Matches NBA Rights Offer; Is This Just a Ploy to Get Settlement From League?
Warner Bros. Discovery Matches NBA Rights Offer; Is This Just a Ploy to Get Settlement From League?
While TNT’s parent company has filed the paperwork, it still seems unlikely that the cable channel will keep NBA games following next season.
Like sands through the hourglass, so are the days of our lives, especially as we are living for all of the twists and turns related to the NBA’s ongoing soap opera with long-time broadcast partner TNT. Monday, July 22 was the date that the cable channel’s parent company Warner Bros. Discovery had to decide whether or not it would exercise its contractual right to match the terms of either Comcast or Amazon's new contract with the league; as Disney is an incumbent broadcast partner, its deal is not subject to matching. While it is still believed to be unlikely that the offer that WBD submitted will be considered a true match by the NBA, the company has officially turned in the paperwork to match one of the broadcast rights deals. Whether or not that means TNT will keep NBA games following the 2024-25 season remains to be seen.
Key Details
- Warner Bros. Discovery executed its contractual right to match third-party bids for NBA rights.
- However, whether or not the league accepts the proposal as “matching” remains to be seen.
- With NBA TV still operated by TNT Sports, could it be a bargaining chip for a potential settlement?
Without naming which new package it was attempting to poach, TNT Sports released a statement on Monday confirming that the move had been made. It is expected that WBD will look to claim the “C” slate of games earmarked for Amazon’s Prime Video. Not only is it the cheapest of the three NBA packages, but it also eliminates the concerns that Warner Bros. Discovery would have about attempting to match a Comcast package that featured multiple games per week on broadcast network NBC.
While WBD won’t be able to match the exact same reach of Prime Video, it does a similar streaming service. Whereas when competing against Comcast, WBD does not have a broadcast channel to “match” NBC.
“We have reviewed the offers and matched one of them,” the statement said. “This will allow fans to keep enjoying our unparalleled coverage, including the best live game productions in the industry and our iconic studio shows and talent, while building on our proven 40-year commitment for many more years. Our matching paperwork was submitted to the league today. We look forward to the NBA executing our new contract.”
The argument against Warner Bros. Discovery being able to match Amazon’s package is that Prime Video more than doubles the reach of WBD’s flagship streamer Max. As of April, Amazon reported having 200 million subscribers while Max had 99.6 million. In WBD’s favor, there is no data that specifies how many customers with access to Prime Video actually use it on a regular basis, as it is included in every Amazon Prime membership. Even if WBD is able to argue that its nearly 100 million streaming subscribers — not to mention any new customers added with the launch of Venu Sports or by bundling with Disney+ and Hulu — there is another significant hurdle that CEO David Zaslav might not be able to clear.
It has been reported that as a part of the contract, Amazon has agreed to pay three years of rights payments upfront, something that WBD would theoretically have to also do in order to have their bid considered matching. The issue is that Zaslav’s company is not nearly as financially secure as Amazon. At $5.4 billion, pre-paying three years of rights fees might not be feasible for a company whose market capitalization is at $20.59 billion.
While it appears to be an uphill climb, TNT Sports is moving forward in an attempt to keep the NBA rights it has had since 1988. One additional thorn in the company’s craw seems to be that it does not believe that the NBA has handled its rights negotiations in a fair manner, especially considering the multi-decade relationship that the league and network have shared.
“We’re proud of how we have delivered for basketball fans by providing best-in-class coverage throughout our four-decade partnership with the NBA,” WBD said in a statement. “In an effort to continue our long-standing partnership, during both exclusive and non-exclusive negotiation periods, we acted in good faith to present strong bids that were fair to both parties. Regrettably, the league notified us of its intention to accept other offers for the games in our current rights package, leaving us to proceed under the matching rights provision, which is an integral part of our current agreement and the rights we have paid for under it.”
The Streamable’s Take
Despite Warner Bros. Discovery claiming that it looks “forward to the NBA executing our new contract,” it is still highly unlikely that TNT will be broadcasting NBA games following the conclusion of its current contract during the 2024-25 playoffs. However, this contractual move could set up some sort of settlement between the Association and the broadcaster that would be beneficial for both sides. If the NBA can convince WBD to drop its matching rights claim in exchange for either a cash payment or some other benefits, it would be well worth it.
One compromise option appears to be off the table. While WBD had been trying to get the league to carve out a fourth rights package, that does not seem to be in the cards. The NBA’s other partners — Amazon, Comcast, and Disney — are not interested in diluting the number of games that they have agreed to air, and New York Knicks and [MSG Network] owner James Dolan is already angry about the loss of games designated for regional sports networks.
So, if the two sides come to some sort of agreement, it likely won’t result in TNT getting games back. However, there might be another puzzle piece at play. While the league owns NBA TV, it is operated by Warner Bros. Discovery’s TNT Sports. This could be a situation where NBA TV is used as a potential trade piece, where the league or one of its broadcast partners (most likely Disney) takes over control of the channel in exchange for monetary considerations; depending on the payout, this would be a significant win for WBD.
Zaslav is fighting to keep his company from succumbing to its massive debt load, so whatever cash infusion it could bring in would be beneficial. Also, Disney has been talking with leagues — including the NBA — about investing in ESPN for almost a year. One such deal which has been reported, but not yet officially announced, would see the NFL take an ownership position in ESPN, and in exchange, the worldwide leader in sports would take over the operation of NFL Media, which includes the NFL Network.
Therefore, if the NBA can pay Zaslav and Warner Bros. Discovery to step aside and let the league work with the broadcast partners of its choice, and invest in the biggest brand in sports media, then it might just be a win-win for everyone involved.
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.