In a groundbreaking turn of events, the NBA is closing in on formal agreements with entertainment giants Disney, Comcast, and Amazon, as the rights fees soar to unprecedented heights. According to Tom Friend of Sports Business Journal, the NBA is finalizing written agreements that could potentially be valued at a staggering $7.4 billion per year.

The negotiations are expected to reach a conclusion within the week, at which point incumbent Warner Bros. Discovery will have the opportunity to match Comcast's bid, now estimated to be $2.6 billion per year, surpassing the previously reported amount of $2.5 billion.

However, the NBA and Warner Bros. Discovery find themselves at odds over the definition of a matching bid. The NBA contends that Warner Bros. Discovery can only match if its offer includes comparable advertising revenue and time slots, while Warner Bros. Discovery believes that a match can be based solely on the price.

During exclusive negotiations earlier this year, Warner Bros. Discovery's President and CEO, David Zazlav, reportedly refused to double the company's current rights fee of $1.2 billion per year, instead expecting to pay a range of $1.8 to $2.1 billion.

While the "B" package remains a subject of contention, new information has emerged about the NBA's other packages. Insider sources claim that Disney has put forth a bid of $2.8 billion per year for its "A" package, which includes broadcasting rights to the NBA Finals and a conference final annually. This figure surpasses the previous estimate of $2.6 billion. (Andrew Marchand of The Athletic disputes this, claiming that the Disney bid remains at $2.6 billion per year.) If the deal goes through, it would result in ESPN doubling its current yearly payout of $1.4 billion.

In a similar vein, Amazon is expected to contribute between $1.8 and $2.0 billion for its "C" package. This would propel the NBA's total rights fees to an astounding $7.4 billion per year, potentially over an 11-year deal, accumulating a mammoth $81 billion for the league.

These staggering sums speak to the remarkable value and widespread popularity of the NBA, attracting the attention of industry leaders such as Disney, Comcast, and Amazon. As the agreements near completion, the NBA solidifies its position as one of the most lucrative and widely-watched sports leagues globally.