The NBA is reportedly on the verge of finalizing a monumental media rights deal with NBC, Amazon, and Disney/ESPN, potentially worth around $76 billion over 11 years. This agreement would significantly boost the league’s annual revenue from broadcasting deals.
NBCUniversal is expected to pay the NBA an average of $2.5 billion per year under this new deal. This investment will allow NBC to broadcast around 100 games each season, with half of those airing exclusively on the streaming platform Peacock.
Additionally, NBC plans to feature games on Tuesdays and Sundays, carefully avoiding any scheduling conflicts with the network’s popular Sunday Night Football.
Amazon is set to join the fray by paying $1.8 billion annually for the rights to broadcast regular season and playoff games, the newly introduced NBA in-season tournament, and “play-in” games where teams compete for the final playoff spots. As part of this agreement, Amazon will also receive a share of the conference finals, which the media partners will rotate.
Disney/ESPN, meanwhile, is slated to increase its annual payment to approximately $2.6 billion, up from the current $1.5 billion. Under the terms of the new deal, Disney will continue to broadcast the NBA Finals. ESPN will feature fewer games overall, but will include these games on its upcoming direct-to-consumer service, which is set to launch in 2025.
These lucrative deals are set to commence after the 2024-2025 season, translating to a 2.5 times increase in annual fees for the NBA, raising the league’s average yearly income from these agreements to nearly $7 billion. The deals will also encompass rights to WNBA telecasts.
The situation presents a significant shift for Warner Bros. Discovery (WBD), whose TNT network has been broadcasting NBA games since 1988. WBD had the opportunity to renew its deal before the April 22 deadline but did not act on it. As per the current terms, WBD has a five-day window to match the bids from NBC or Amazon once those deals are formalized, potentially leading to a legal showdown.
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Without the NBA, WBD could face substantial financial losses, including an estimated $270 million annual decline in ad revenue and a potential 45% drop in affiliate fees for TNT. To mitigate these losses, the company might explore sublicensing other sports content or bidding for new sports rights that come up for renewal, such as the UFC.
David Zaslav, CEO of Warner Bros. Discovery, has expressed confidence in the company’s sports portfolio, which includes rights to NASCAR, the National Hockey League, Major League Baseball, and the March Madness college basketball tournament. The company is also in exclusive negotiations with All Elite Wrestling.
This potential $76 billion deal underscores the immense value placed on live sports content by major entertainment companies. As viewing habits continue to shift, these companies are strategically investing in sports broadcasting to attract and retain subscribers. The inclusion of games on streaming platforms like Peacock and Amazon highlights the industry’s ongoing transition towards direct-to-consumer models.
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