Uncertainty Surrounds TNT's NBA Coverage as Television Deal Nears Expiration

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ICARO Media Group
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09/05/2024 22h01

In a surprising turn of events, the future of TNT's NBA coverage remains uncertain as the league's television deal with Warner Bros. Discovery's TNT and Disney's ABC and ESPN approaches its expiration next season. Speculation had been rife that TNT would lose out in the bidding war, with new deals potentially going to Comcast's NBC and Amazon. However, during a recent earnings call, WBD CEO David Zaslav hinted at the possibility of a continued partnership.

Zaslav expressed the company's strong partnership with the NBA, which has spanned nearly four decades, and indicated ongoing conversations in the hopes of reaching an agreement that benefits both parties. While he acknowledged that plans and strategies were in place for various outcomes, Zaslav refrained from discussing specific details, citing the active negotiations with the league.

Reports have indicated that NBC is making a staggering bid of $2.5 billion per year to snatch the rights from TNT, intending to air the games on its broadcast network and Peacock streaming service. Amazon has also entered the race with an offer averaging $1.8 billion annually for the new rights.

Zaslav's mention of "matching rights" alludes to a common clause in sports TV rights contracts that allows the incumbent partners to retain their deals. If TNT chooses not to match NBC's bid but still has the ability to block Amazon's bid, it would send a clear message to the NBA, which has been seeking a major tech partner as traditional cable and satellite bundles continue to decline.

Disney's reported deal with the NBA is valued at around $2.6 billion per year. This arrangement would see ESPN and ABC retain the rights to the NBA Finals, along with a full conference finals series, while relinquishing their Friday night regular-season inventory. The other two rightsholders would alternate hosting the conference finals on a yearly basis.

Zaslav drew criticism from the league in late 2022 when he stated that TNT didn't "need" the NBA. TNT currently earns approximately $3 per month from cable and satellite subscribers, with a significant portion linked to NBA-related content. Reportedly, distributors are pushing back on maintaining the same affiliate fee if TNT secures the package Amazon is vying for, as it would entail less content compared to their existing NBA agreement. Additionally, TNT would lose the rights to the NBA All-Star Game if NBC's bid is successful.

Under the previous agreement, TNT paid an average of $1.2 billion, while ESPN paid $1.4 billion. With three partners involved, the NBA would see its annual rights fees skyrocket to around $7 billion, nearly tripling the average from the current deal.

As negotiations are still underway, the future of NBA coverage on TNT remains uncertain. Fans will have to wait and see whether the longstanding partnership between the network and the league will continue or if a new chapter awaits as the next television deal takes shape.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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