NBA Media Rights: Warner Bros. Discovery Makes Its Play
The National Basketball Association (NBA) is on the verge of finalizing its media rights deal, and Warner Bros. Discovery is about to make its move. The league has sent its proposed new media rights contracts to Warner Bros. Discovery, starting a five-day period where the media company can choose to match a package of broadcasting rights.
The Deal: A $76 Billion Package
The proposed deal includes three different packages of games, totaling $76 billion over 11 years, beginning with the 2025-26 season. The deal also includes WNBA games, which is worth $2.2 billion of the total sum. Warner Bros. Discovery intends to match a package of games that has been slotted for Amazon, which includes both playoff games and the in-season tournament, according to sources familiar with the matter.
Warner Bros. Discovery’s Plan
Warner Bros. Discovery plans to argue that its matching rights, a holdover from its current media rights deal, applies to Amazon’s package of games, even though that package has been earmarked for a streaming-only service. The company owns Max, a competitor to Amazon’s Prime Video, and has fewer subscribers than Prime Video, at about 100 million versus Prime’s more than 200 million monthly global subscribers.
The NBA’s Response
The NBA may or may not have the right to reject Warner Bros. Discovery’s matching rights, and the league has been working with its lawyers for months in preparation of a potential lawsuit, according to sources familiar with the matter. The NBA may also have the option to reject Warner Bros. Discovery’s offer and move forward with its original plan.
What’s Next?
When Warner Bros. Discovery formally announces its intention to match, it’s unclear what will happen next. The NBA may or may not have the right to reject Warner Bros. Discovery’s matching rights, and the league has been working with its lawyers for months in preparation of a potential lawsuit.
Conclusion
The NBA media rights deal is a significant one, with a total value of $76 billion over 11 years. Warner Bros. Discovery is making its move to match Amazon’s package of games, but the NBA may or may not have the right to reject its offer. The outcome of this deal will have a significant impact on the future of the NBA and its broadcasting rights.
FAQs
Q: What is the proposed deal worth?
A: The proposed deal is worth $76 billion over 11 years, beginning with the 2025-26 season.
Q: What does the deal include?
A: The deal includes three different packages of games, totaling $76 billion over 11 years, beginning with the 2025-26 season. The deal also includes WNBA games, which is worth $2.2 billion of the total sum.
Q: What is Warner Bros. Discovery’s plan?
A: Warner Bros. Discovery plans to match a package of games that has been slotted for Amazon, which includes both playoff games and the in-season tournament.
Q: What is the NBA’s response?
A: The NBA may or may not have the right to reject Warner Bros. Discovery’s matching rights, and the league has been working with its lawyers for months in preparation of a potential lawsuit.
Q: What is the impact of this deal on Warner Bros. Discovery?
A: Losing the NBA would be a blow for Warner Bros. Discovery, which could lose about $600 million in profit from advertising and a potential decrease in cable affiliate fees if it loses the NBA.
Author: www.cnbc.com
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