The NBA’s current broadcast agreements with ESPN/ABC and TNT end after next season. The NBA has deals in place with ESPN/ABC and Amazon for the next decade.
And, according to the Wall Street Journal, Comcast’s NBCUniversal is prepared to pay an average of about $2.5 billion a year to edge out TNT for the rights to a third NBA package.
“The package NBCUniversal is bidding on would include playoff and regular season games that would appear on the NBC network, as well as its Peacock streaming service. NBC has discussed carrying two prime-time games a week, something Warner can’t offer because it doesn’t own a broadcast network,” says the report.
NBC’s interest does not signal the end for the NBA on TNT. TNT has matching rights.
However, TNT currently pays the NBA an annual fee of $1.2 billion. TNT parent company Warner Bros. Discovery (WBD) would have to more than double its investment to retain the NBA.
The problem is that WBD is in costing mode after merging WarnerMedia and Disovory Inc. into one debt-filled media entity.
“Warner Chief Executive David Zaslav has emphasized cost savings and had indicated on calls with analysts that while securing NBA rights is important, the company would be disciplined in its approach to a new deal,” added the WSJ.
Los Angeles Lakers All-Star LeBron James plays against the Denver Nuggets in Game 3 of the first round of the 2024 NBA Playoffs at Crypto.com Arena. (Gary A. Vasquez-USA TODAY Sports)
There's also the argument that the NBA isn't worth the increased asking price. The league has lost more than 50 percent of its attendance since 2012. Paying too much for a product that is clearly in decline is not, on its face, a wise decision.
That said, the NBA remains the most-watched TV show on TNT each week. Without the NBA, the cable companies would likely lower the cable rates he pays WBD to carry the network.
Second, WBD recently reached an agreement in principle with Fox and Disney to form a future sports streaming venture. WBD couldn't hold up its end of the bargain without the NBA, March Madness broadcasts, and the NHL.
TNT's NBA is an organization. There's an entire generation of viewers who wouldn't know the NBA without TNT and its acclaimed pregame show “Inside the NBA.”
For WBD/TNT, the NBA is more valuable than any other potential broadcast partner.
But that may not matter. NBC has a clear financial advantage over WBD, with a market capitalization advantage of $155 billion to $18 billion. Suffice it to say, a bidding war with NBC won't favor the NBA remaining with TNT.
“The league's negotiations with streaming and television partners are in flux, with the parties still negotiating who will acquire the rights to broadcast the most high-profile games and series,” the report concluded. There is.
NBC last aired the NBA in 2002. You may remember this distinctive theme.
