Warner Bros. Discovery Channel considers matching NBA package with Amazon | Wilnesh News

Warner Bros. Discovery Media rights offers are being considered to match National Basketball Association game package as league seeks to finalize terms, but focus could be on potential Amazon Packages instead of games Comcast NBCUniversal, according to people familiar with the matter.

It’s the latest twist in a relatively messy renegotiation for Warner Bros. Discovery. disney. Warner’s Turner Sports Channel has broadcast NBA games for nearly 40 years.

Warner Bros. Discovery Channel is continuing to consider ways to partner with the NBA to broadcast a slate of games as the NBA plans its next media partner, people familiar with the matter said.

The league is close to signing deals with Disney, NBCUniversal and Amazon for three different game packages, people familiar with the matter said. If that happens without a side deal with Warner Bros. Discovery, its CEO David Zaslav would have the opportunity to take advantage of matching rights earned and paid for as part of its previous agreement with the league.

Under the terms of the deal, which expires after the 2024-25 season, Warner Bros. Discovery can bid on the games it currently licenses from the NBA. Warner Bros. Discovery Channel has yet to see the three potential packages, as the league has yet to formally sign an agreement with any of its potential media partners. The company has not communicated any plans to match or not match the alliance, people familiar with the matter said.

Still, the company has been working with lawyers to determine how matching would work if the alliance split Warner Bros. Discovery’s current package into a deal with NBCUniversal and Amazon.

Amazon has Reported bids are $1.8 billion per year According to people familiar with the matter, NBCUniversal’s offer is about $2.5 billion per year. The league has established a framework for both deals but has yet to sign formal bid documents. Warner Bros. Discovery Channel will then have five days to cooperate, according to a person familiar with the contract.

It’s possible that Warner Bros. Discovery Channel chooses not to match either game package, or it could push for a settlement or a smaller side deal with the fourth game package with the league. It’s unclear whether the NBA will accept either solution.

Spokespersons for the NBA, Warner Bros. Discovery Channel and NBCUniversal declined to comment. Representatives for Amazon did not immediately respond to a request for comment.

“We’ve had a lot of time to prepare for this negotiation, and we’ve developed strategies for a variety of potential outcomes,” Zaslav said on Warner Bros.’ Discovery Channel show earlier this month. Quarterly Earnings Conference Call. “We have matching rights that allow us to match third-party offers before the NBA reaches an agreement with the third party.”

That could put the NBA in trouble with its deals with NBCUniversal or Amazon, or it could lead to a lawsuit between Warner Bros. Discovery and the league. It’s unclear whether Warner Bros. Discovery could be denied matching rights if the league chooses a different partner.

Given that Warner Bros. Discovery has total debt of about $42 billion (more than double its current market capitalization of about $20 billion), the company is interested in more affordable game bundles, which makes Amazon’s designation The game pack is attractive. The package tentatively includes the All-Star Game and conference finals, which are already airing on TNT, according to a person familiar with the matter.

The NBA wants to offer a robust streaming service as a third package to expand the reach of its offering beyond cable TV. Warner Bros. Discovery owns cable network TNT and its flagship streaming service Max, which Expanding internationally. The company announced Wednesday that it has reached an agreement with ESPN to sublicense College Football Playoff games for five years, with the games to be broadcast on TNT and live on Max.

However, unlike Amazon’s Prime Video streaming service, Plan Max Provide sports product classification to customersforcing them to pay more and potentially shrinking their influence, something the NBA might not like.

Zaslav’s focus on Amazon may be a strategic move to gain rapport with the alliance by focusing on packages designed specifically for big tech streaming.

The College Football Playoff deal, along with the company’s recent deal for rights to a slate of NASCAR races starting in 2025, puts Zaslav in the position of being in a position to do something if Warner Bros. Discovery executives decide the cost is too high, according to people familiar with the matter. , he is willing to lose the NBA.

Zaslav told colleagues that he believed NBCUniversal was overspending on the NBA based on his company’s research on the subscription streaming service’s viewership and potential subscriber value, according to a person familiar with the matter.

An offer of $2.5 billion or more would be more than double the NBA’s previous asking price of $1.2 billion, and the new package would include fewer games due to the introduction of a third media partner.

Warner Bros. Discovery Channel could use the money it saves from not spending money on the NBA to invest in other sports, including the UFC, which could sign a new rights deal next year.

Zaslav views NBCUniversal as a direct competitor in the battle for survival of traditional media companies, according to people familiar with his thinking. They said he sees it as a competitive advantage for Warner Bros. Discovery Channel if NBCUniversal ends up paying too much for the NBA.

If Warner Bros. Discovery chooses to match Amazon’s potential package or pull out entirely, it would clear the way for the NBA to get back into business with NBCUniversal, which lost the league rights in 2002.

A member of NBCUniversal’s music licensing team recently contacted John Tesh. The owner of the old “NBC Live NBA” theme song “Roundball Rock” has expressed interest in bringing the song back to NBC if the company acquires the media rights, according to a person familiar with the matter.