Warner Bros. Discovery is considering matching an offer for the media rights to a package of National Basketball Association games as the league looks to finalize terms. Its focus may be on a potential Amazon package rather than games slated for Comcast’s NBCUniversal, according to sources. Warner’s Turner Sports has carried NBA games for almost 40 years and is still considering ways to partner with the NBA for broadcasting games as the league plans its next media partners.
The NBA is close to signing agreements with Disney, NBCUniversal, and Amazon for three different packages of games. If that happens without a side agreement with Warner Bros. Discovery, its CEO will have a chance to leverage matching rights secured as part of its previous deal with the league. Warner Bros. Discovery can match a competing bid for the games it currently licenses from the NBA, and it has not yet seen the three potential packages from the league or communicated any plans on matching or not matching.
Amazon has offered $1.8 billion a year for a slate of games, while NBCUniversal has offered about $2.5 billion per year. Warner Bros. Discovery has five days to match a bid once the league signs agreements with potential media partners. It may choose not to match any of the packages, or it could push for a side deal with the league for a settlement or a smaller package of games. The future of the negotiations with the NBA is uncertain at this time.
Warner Bros. Discovery believes it has the right to match any of the current NBA game packages. The company is interested in a more affordable package of games given its substantial gross debt, making the package likely earmarked for Amazon appealing. Warner Bros. Discovery owns cable network TNT and its flagship streaming service, Max, and is looking to extend the reach of its products. The company may focus on a deal with Amazon due to its strategic positioning.
Warner Bros. Discovery management may decide that the cost of matching an offer for NBA games is too high. David Zaslav, the CEO, believes NBCUniversal is overspending for the NBA, based on company research. If Warner Bros. Discovery chooses not to match a potential Amazon package or decides to stand down completely, it could pave the way for the NBA to partner with NBCUniversal, which lost league rights in 2002. NBCUniversal’s broadcast network and streaming service could also become platforms for NBA games.
In a potential deal with NBCUniversal, there is talk of bringing back the iconic “NBA on NBC” theme song, “Roundball Rock.” Warner Bros. Discovery may focus on other sports, such as the UFC, if it decides not to pursue the NBA deal. The company’s recent deals for College Football Playoff games with ESPN and a package of NASCAR races have put Zaslav in a position where he may be content to lose the NBA rights. The outcome of the negotiations with the NBA will have significant implications for the media landscape and the future of sports broadcasting.
