Jaylen Brown, No. 7 player of the Boston Celtics, hits a three-pointer against the Dallas Mavericks during Game 5 of the 2024 NBA Finals at TD Garden in Boston on June 17, 2024.
Nathaniel S. Butler | Nathaniel S. Butler National Basketball Association | Getty Images
Warner Bros. Discovery Channel is about to flex its muscles as the National Basketball Association’s media rights near final form.
The Alliance has sent formal terms of its proposed new media rights tie-up to Warner Bros. Discoverybeginning a five-day period in which media companies can choose to pair up a set of broadcast rights.
A TNT spokesperson confirmed receipt of the documents and acknowledged that the company is currently reviewing the terms. Warner Bros. Discovery received the contract framework on Wednesday night, according to people familiar with the matter.
Media rights deals currently structured include disney, Comcast NBCUniversal and Amazon Over 11 years starting in the 2025-26 season, three different sets of tournament fees total $76 billion. It also includes WNBA games, with a total value of $2.2 billion.
As CNBC first reported in May, Warner Bros. Discovery intends to match a slate of games already scheduled for Amazon, including playoff games and In-season tournamentAccording to people familiar with the matter. Amazon signed a deal with the NBA to pay $1.8 billion annually for its packages, they said.
The next step is unclear
When Warner Bros. Discovery officially announced its intentions to partner, it was unclear what would happen next. The NBA may or may not have the authority to deny Warner Bros. Discovery the rights to match, and the league has been working with its lawyers for months to prepare for possible litigation, according to people familiar with the matter.
Warner Bros. Discovery’s Turner Sports has been the NBA’s broadcast partner for nearly 40 years. The company plans to argue that its matching rights, a holdover from current media rights agreements, apply to Amazon’s game bundle even though the bundle is earmarked for a streaming-only service. Warner Bros. Discovery, along with its cable network TNT, owns Amazon Prime Video rival Max.
Still, Max has fewer subscribers than Prime Video, about 100 million, while Prime has more than 200 million monthly global subscribers. A person familiar with the matter said the streaming rights in Amazon’s plans are global in nature.
TNT is also home to the hit NBA studio show “Inside the NBA,” starring Ernie Johnson, Charles Barkley, Kenny Smith and Shaquille O’Neal. Barkley has Already said Regardless of the outcome of the media rights deal, he plans to leave the show after next season.
“I don’t know yet,” NBA commissioner Adam Silver said. earlier this week during a press conference when asked what might or might not happen with the Warner Bros. Discovery Channel or the NBA’s own network NBA TV, which is run by TNT Sports. “We’ll see.”
Wolfe Research media and entertainment analyst Peter Supino told MarketWatch that losing the NBA would be a blow to Warner Bros. Discovery Channel, which could lose about $600 million in advertising profits if it loses the NBA. , cable TV affiliate fees may be reduced. earlier this week.
Shares of Warner Bros. Discovery have fallen 23% this year.
“I’m sorry it’s been a long process because I know they’re committed to their work,” Silver said. last month Warner Bros. Discovery employees working on NBA programming. “I know people who work in this industry and it’s a big part of their identity and their family’s identity, and no one likes this uncertainty. I think it’s the league office’s responsibility to get these negotiations into high gear and get them over with as quickly as we can.”
Revealed: Comcast-owned NBCUniversal is the parent company of CNBC.
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