TNT Sports and NBA Head for Legal Battle Over Broadcast Rights as Amazon Deal Looms
ICARO Media Group
In a dramatic turn of events, TNT Sports has exercised its matching rights to continue broadcasting NBA games, targeting the 11-year package recently signed by Amazon Prime Video. However, sources within the NBA indicate that the league is likely to decline TNT's offer and proceed with its agreement with Amazon.
This disagreement is expected to spark further discussions, with the potential for a legal battle to determine the future of broadcast and streaming deals. TNT's decision to go after Amazon's package paves the way for NBC to become a new partner alongside incumbent ABC/ESPN. Under the proposed deal, NBC will exclusively air regular-season games on Peacock on Mondays, with NBC broadcasts on Tuesdays and Sundays.
NBC's comprehensive coverage will include the All-Star Game, a full slate of playoff games (including six conference finals), and is anticipated to pay approximately $2.5 billion per season over the course of 11 years. ESPN, on the other hand, will retain the NBA Finals every year and conference finals for each of the 11 seasons, except one, paying about $2.6 billion per year.
In addition to the NBA deals, the three entities, ESPN, NBC, and Amazon or TNT, will contribute $2.2 billion collectively over 11 years to broadcast Women's National Basketball Association (WNBA) games.
TNT expressed disappointment in the NBA's intention to accept other offers for its current rights package, leaving the network to proceed with its matching rights provision as outlined in the existing agreement. The network confirmed that they have matched one of the offers and submitted the required paperwork to the league.
While an NBA spokesperson acknowledged receiving TNT's proposal, the league's agreement with Prime Video is expected to proceed. The deal with Amazon includes coverage of six conference finals, a full playoff slate (including Play-In games), and a regular-season package, featuring the In-Season Tournament and Thursday night basketball after Amazon concludes its Thursday night football commitments.
The standoff between TNT and the NBA raises numerous unanswered questions. TNT, known for its iconic "Inside the NBA" studio show, will attempt to convince a hesitant partner to continue their business relationship. The CEO of TNT Sports' parent company, Warner Bros. Discovery's David Zaslav, has been hinting at this possibility for months, offering the NBA time to strategize.
To resolve the dispute, both sides may explore the option of reaching an agreement that allows TNT to remain involved in NBA broadcasts or to provide the network with a financial settlement to withdraw. However, if a resolution cannot be reached, legal action may be inevitable, and TNT might sue to continue its partnership with the NBA, potentially forcing the league into an unwanted union.
While the exact details of the matching rights clause are not publicly known, it is evident that the package won by Amazon differs from TNT Sports' existing arrangement. TNT's current contract guarantees the broadcast of conference finals each year, while the NBA and Amazon may have agreed to other rights that TNT cannot deliver.
An additional wrinkle in the negotiations is the absence of backend rights in the new contracts with ESPN, NBC, and Amazon, as reported by The Athletic. The NBA had hoped to announce these new deals prior to the start of the Paris Olympics in 2024, which are scheduled to air on NBC. However, if the issues remain unresolved in the coming week, alternative plans may have to be considered.
It's important to note that the current agreements between the NBA, ESPN, and TNT Sports are still in effect for the upcoming season. The new broadcast agreements are set to take effect during the 2025-26 season, providing ample time for all parties to negotiate and settle any remaining disputes.