What Happens to the Disney, Fox, WBD Sports Streamer if NBC Steals NBA Rights From TNT?
What Happens to the Disney, Fox, WBD Sports Streamer if NBC Steals NBA Rights From TNT?
If NBC snakes WBD’s package of NBA games out from under it, there could be massive implications for the JV platform known in some circles as ‘Spulu.’
This is shaping up to be one of the more challenging weeks in the tenure of Warner Bros. Discovery CEO David Zaslav. Not only does he have to contend with a nasty carriage dispute with Fubo, but he also has to deal with a hard-charging effort by NBCUniversal to acquire the package of NBA rights currently held by his TNT cable channel. Zaslav likely has Disney CEO Bob Iger and Fox chief Lachlan Murdoch scrambling for updates as well; the three media execs are deep in the process of creating a new joint venture sports streamer that carries livestreams of 14 networks like ESPN, TNT, and FS1, but the uncertainty over potentially losing a third of national NBA package to NBC could have Iger and Murdoch considering alternatives when it comes to the sports streaming joint venture.
Key Facts:
- TNT and TBS would still have the MLB, NHL, NASCAR, All Elite Wrestling, U.S. Soccer, and the NCAA Men’s March Madness Tournament if WBD loses the NBA.
- WBD has the right to match any offer from NBC for basketball rights, but its lack of a broadcast channel could put it at a disadvantage.
- There are many theoretical options on the table for Disney and Fox if WBD loses the NBA, but none of them are terribly desirable.
If TNT does lose the NBA to NBC, it would still have a solid lineup of popular sports to bring to the JV streamer. The cabler would still carry NHL regular season and playoff games, NASCAR races, U.S. Soccer matches from the Men’s and Women’s National Teams, games from the annual NCAA Men’s Basketball Tournament (shared with CBS, TBS and truTV), and All Elite Wrestling. MLB plays a package of national games on TBS, as well. truTV is also expanding its sports programming with prime-time blocks that launched in March.
The Sports Business Journal reports that Zaslav is already considering a counter to NBC’s massive bid for NBA rights, but one source said it would be “hard to justify” laying out enough money to beat NBC's reported offer of $2.5 billion per season. But not securing the NBA for the next 10 years could hasten the already-precipitous decline of WBD’s cable revenues, and the fact that games now stream live on Max in the Bleacher Report Sports Add-On will not lead to an increase in revenues big enough to make up for cable channel losses.
Losing the NBA would also mean that WBD cannot contribute those games to the JV streamer that it is working on with Disney and Fox. That leaves the other two companies with several options, none of which are especially appealing. It’s likely too late to try and pursue NBC as a partner in the JV and leave WBD behind, as the still-unnamed platform has already named a jointly-agreed-upon CEO. But would WBD have to pursue other sports rights to try to make up for the lack of NBA games? Or could its failure to secure the package be the death knell of the JV altogether?
The most likely outcome is a scenario in which WBD tries to secure enough marquee sports options to keep itself a worthwhile partner to have in the JV. But there aren’t going to be many opportunities for it to go after, considering that NFL rights are locked up beyond 2030 and the NHL’s current deal with ESPN and TNT runs until 2027-28. WBD was never reported as having serious interest in acquiring College Football Playoff rights, which will remain with Disney until 2032, however, they could sublicense games from ESPN, but that won’t have much of an impact on the viability of the company’s involvement in the JV streamer. WBD may have to get creative in order to secure enough sports to make up for losing the NBA.
Where Do NBA Negotiations Stand As Of Now?
TNT exited its exclusive negotiating window with the NBA on April 22, at which time the league was free to start shopping its national broadcast rights to any outlet. Its current deals with ESPN and TNT expire following the 2024-25 season, and it has already hammered out the framework of a deal with ESPN that will reportedly see that channel pay around $2 billion per season for a slimmed-down bundle of yearly games.
The league has made it known for some time that it wants to carve out a third package of national games for a streaming outlet, which it created by reducing the inventory in ESPN and TNT’s current collection of games. Prime Video is reportedly all but guaranteed to land that package, leaving the WBD slate of games as the only one left.
WBD has the right to match any deal offered by NBC, from a monetary standpoint. But Sportico reports that NBC’s ownership of a broadcast channel expands its range to some 12.7 million homes that do not have access to TNT, and that could be sorely tempting to the NBA as it tries to maximize its reach in its new broadcast deal.
NBC poses a serious threat to WBD’s relationship with the NBA. If Warner loses NBA games, it will have to do some scrambling to ensure it has enough alternative sports programming to make itself a viable partner in the joint venture streaming platform it is currently at work on with Disney and Fox.
Max
Max is a subscription video streaming service that gives access to the full HBO library, along with exclusive Max Originals. There are hubs for content from TLC, HGTV, Food Network, Discovery, TCM, Cartoon Network, Travel Channel, ID, and more. Watch hit series like “The Last of Us,” “House of the Dragon,” “Succession,” “Curb Your Enthusiasm,” and more. Thanks to the B/R Sports add-on, users can watch NBA, MLB, NHL, March Madness, and NASCAR events.