NBA Finalizes Rights Deals with ESPN, NBC Sports, and Prime Video, Potentially Leading to Legal Battle with Warner Bros. Discovery
ICARO Media Group
In a major development, the NBA has come one step closer to wrapping up its rights agreements, as it finalized deals with Disney's ESPN, NBCUniversal's NBC Sports, and Amazon's Prime Video. This move sets the stage for a new trio of game broadcasters for the coming years, but it also potentially sparks a legal dispute with one-time media partner, Warner Bros. Discovery.
While the exact terms of the agreements have not been announced immediately, sources familiar with the matter have confirmed that all parties involved have reached comprehensive pacts. These deals will enable NBA games to be telecast on NBC and its streaming platform Peacock, Amazon's Prime Video, as well as ESPN and its associated properties. However, none of the involved organizations have made their executives available for comment, and the NBA is yet to respond to queries seeking clarification.
Approval from the league's board of governors is required for these contracts to be finalized, but sources indicate that the ratification seems highly likely at this stage. The board is expected to convene in Las Vegas next week, following which, completed contracts will be sent to current and proposed rightsholders.
Presently, Disney and Warner hold the NBA's media rights contracts, but these agreements are set to expire after the 2024-2025 season. Although Warner has claimed the ability to "match" any new game package offered, it is uncertain if they will secure a fourth package since all national NBA telecasts are already accounted for in the deals with the other three companies.
Similar to the NFL, the NBA is keen on striking long-term agreements that align with the value of sports in today's media landscape. With the rise of streaming video, sports remain one of the few genres that attract large, live audiences that are coveted by advertisers, distributors, and leagues alike.
According to insiders, Disney could potentially pay around $2.6 billion per year in a new 11-year contract, which grants a smaller selection of games compared to its current arrangement. Amazon is rumored to be offering approximately $1.8 billion per year for a new package, which would provide the NBA with a strong presence on a major streaming platform that has already expanded the NFL's viewership among broadband audiences. Meanwhile, NBCUniversal could pay around $2.5 billion per year.
The discord between Warner Bros. Discovery and the NBA seems to have grown in recent years. Despite the company's cable networks airing NBA games for over three decades, NBA executives have reportedly been dissatisfied with Warner's cost-cutting measures in the past couple of years. Notably, Warner Bros. Discovery was established in 2022 following a merger between Discovery Inc. and the WarnerMedia unit of AT&T.
As the NBA moves closer to finalizing its rights deals with ESPN, NBC Sports, and Prime Video, a potential legal battle with Warner Bros. Discovery looms on the horizon. The outcome of this saga will shape the future of basketball on the screen and provide further insight into the evolving dynamics between sports leagues and media giants.