In a strategic move to bolster its sports offerings, Warner Bros. Discovery has entered a five-year sublicensing agreement with Disney's ESPN to broadcast first-round and quarterfinal College Football Playoff games. This deal comes as part of Warner Bros. Discovery's efforts to strengthen its sports content and expand its presence in the live sports landscape.

Under the terms of the agreement, Warner Bros. Discovery's TNT will carry two first-round games this year and next year, with an additional two quarterfinals games added starting in 2026. The games will also be included in Warner Bros. Discovery's Max sports tier, providing increased accessibility for sports fans.

Furthermore, Disney has the option to sublicense a semifinals game to Warner Bros. Discovery, beginning in the third year of the deal. However, Disney will retain exclusivity on the championship game throughout the contract period, which runs through 2031.

According to insiders familiar with the matter, Disney is paying approximately $1.3 billion per year for exclusive rights to the entire College Football Playoffs. This lucrative deal ensures that ESPN will remain the primary production partner for the games, utilizing its talented roster of broadcasters.

Warner Bros. Discovery will assume the obligation of sublicensing the games, which entails an average payment of "hundreds of millions" per year to ESPN over the course of five years. The sub-licensing arrangement grants Warner Bros. Discovery exclusive rights to distribute the games for the duration of the contract.

Bill Hancock, the executive director of the College Football Playoff, expressed excitement over the addition of TNT Sports to the Playoff family, citing the network's notable experience and reputation in delivering high-quality sports content.

The new 12-team College Football Playoff format is set to debut in December, replacing the previous four-team tournament that commenced in 2014. This revised format will see the top four teams receiving byes, while teams seeded No. 5 through No. 12 will compete in first-round games at the home stadium of the higher-ranked team.

The inclusion of College Football Playoff games in the sublicensing agreement also establishes a significant role for Warner Bros. Discovery's upcoming sports streaming service, Venu Sports. This service, which is being developed jointly by Disney, Fox, and Warner Bros. Discovery, is slated for launch in the fall and will house all of the College Football Playoff games, ensuring a dedicated platform for sports enthusiasts.

In addition to securing broadcasting rights for the College Football Playoff, Warner Bros. Discovery's sports lineup also includes the NBA until mid-2025. Furthermore, the company boasts exclusive coverage of the NCAA men's basketball March Madness tournament, men's and women's soccer, NASCAR, Major League Baseball, and the National Hockey League. This robust sports portfolio will undoubtedly strengthen Warner Bros. Discovery's position in its upcoming carriage renewal negotiations for TNT and its other cable networks.

The first round of this year's College Football Playoff is scheduled to take place on December 20 and 21. Warner Bros. Discovery intends to incorporate these highly anticipated games into its Max sports tier, providing fans with an enhanced viewing experience.

As Warner Bros. Discovery fortifies its sports programming, it is simultaneously engaged in negotiations with the National Basketball Association (NBA) for a package of live games. While there may be uncertainties regarding the future of the NBA partnership, Warner Bros. Discovery aims to capitalize on its current sports offerings and secure its position in the live sports arena.

College football has long been a favorite among television viewers, with last year's semifinals victory by Michigan over Alabama drawing an average audience of 27.2 million viewers – making it the most-watched non-NFL sporting event since 2018.

Warner Bros. Discovery's deal with ESPN not only solidifies its presence in the competitive live sports market but also presents an opportunity for growth and innovation in the delivery and promotion of College Football Playoff games.