By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
IndebtaIndebta
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Notification Show More
Aa
IndebtaIndebta
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
Indebta > News > Deadline looms for Warner Bros Discovery with NBA broadcasts on the line
News

Deadline looms for Warner Bros Discovery with NBA broadcasts on the line

News Room
Last updated: 2024/07/21 at 8:51 AM
By News Room
Share
6 Min Read
SHARE

Stay informed with free updates

Simply sign up to the Media myFT Digest — delivered directly to your inbox.

Warner Brothers Discovery has until Monday to match proposals for purchasing the next round of broadcast rights to the US National Basketball Association, which are set to more than double in value to roughly $75bn over 11 years.

The negotiation between the league and media company, whose TNT network has aired NBA games since the 1980s, has become a referendum on the future of live sports rights. For WBD the stakes are high: it is at risk of losing its cornerstone live sports programming amid changes in the broader media landscape.

Last week NBA team owners approved proposals from Disney, Amazon Prime Video and Comcast’s NBC for broadcast rights beginning with the 2025-26 season. WBD’s current contract gives it a chance to match any third-party offers — in this case, those from Amazon and NBC. It has until Monday evening to furnish its own proposal. 

People familiar with the discussions, which are ongoing and subject to change, told the Financial Times the definition of what terms constitute a “matching offer” is complex in the current landscape, as traditional cable and linear companies compete directly with tech platforms.

In this case, WBD is more likely to target the proposal by Amazon, the people said, in part because the $1.8bn average annual value for its proposed rights is closer to the $1.2bn per year WBD pays now. The proposal from NBC is worth roughly $2.5bn per year.

It is unclear what could happen next, depending on WBD’s response. One person familiar with the process stressed that WBD would match one of the offers or not, but “this is not a bidding war”.

A spokesperson for TNT Sports said the company had received the proposals from the NBA and was “preparing a response in view of our matching rights”. The NBA, NBC and Amazon all declined to comment.

People familiar with the league and WBD agreed that dollar figures would not be the only criterion evaluated for determining who will prevail. Adam Silver, the NBA commissioner, said last week the league’s goals in negotiating the next round of media rights were partly economic and partly fan services, including offering a mix of broadcast and streaming options as well as international capabilities.

“That’s something that we’ve been very focused on in these deals, not just reach in the United States but reach globally as well,” Silver said, adding that details needed to be worked through “with existing partners” before the contracts could be finalised.

One point the stakeholders are quibbling over is the size and reach of streaming platforms. Amazon Prime Video has more than 200mn monthly viewers as of last year, while WBD’s direct-to-consumer streaming has reached nearly 100mn subscribers through the first quarter of 2024. That includes Max, where US viewers were able to watch simulcasts of NBA games on TNT this season.

A person familiar with WBD noted the disparities between the two companies’ streaming subscriber bases but said any assessment of the NBA rights in question — for domestic US distribution — should be limited to domestic comparisons.

The discussions come at a critical time for WBD, whose executives have weighed a potential break-up of the company as it contends with a $39bn net debt load. Its market capitalisation has fallen by a third to $20.8bn over the past year. 

Those circumstances, particularly the market capitalisation, are a consideration for the league, one of the people said. 

People on all sides of the negotiations stressed “unknowns remain unknown”, as one person put it — meaning the final rights contracts will not be determined until WBD submits its counterproposal. When all is said and done, however, the overall value of the rights package is set to double, in a reflection of how important live sports are to keeping cable and streaming subscribers.

Analysts at MoffettNathanson wrote this spring that “having the NBA has been a significant source of leverage in driving [affiliate] rates for TNT and across WBD’s broader linear portfolio”.

Some of TNT’s A-list talent have also been outspoken about wanting to keep NBA games on the network, including Hall of Famer Charles Barkley, a co-host of the company’s flagship basketball programme, Inside the NBA. In interviews in recent months, he has criticised WBD chief executive David Zaslav for publicly equivocating over the decision to keep the rights.

“When we merged [with Discovery in 2022], that’s the first thing our boss said, ‘we don’t need the NBA’,” Barkley said on The Dan Patrick Show in May. “Well, he don’t need it, but the rest of the people [on TNT], we need it.”

Read the full article here

News Room July 21, 2024 July 21, 2024
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
Trump’s ominous ICE security state

Unlock the White House Watch newsletter for freeYour guide to what Trump’s…

Investors pile into tokenised Treasury funds

Crypto companies and traders are pouring billions of dollars into tokenised versions…

Liechtenstein hit by Russia-linked ‘zombie trust’ crisis

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

BlackRock tried private credit once before. Will this time be better?

Seven years after BlackRock’s last big foray into private credit, last week…

The global economy is suffering from the Rashomon effect

I have marvelled over the past few years, and continue to marvel,…

- Advertisement -
Ad imageAd image

You Might Also Like

News

Trump’s ominous ICE security state

By News Room
News

Investors pile into tokenised Treasury funds

By News Room
News

Liechtenstein hit by Russia-linked ‘zombie trust’ crisis

By News Room
News

BlackRock tried private credit once before. Will this time be better?

By News Room
News

The global economy is suffering from the Rashomon effect

By News Room
News

Hong Kong listings pipeline hits record high as equity market booms

By News Room
News

Donald Trump calls Elon Musk a ‘train wreck’ as feud escalates over third party

By News Room
News

Gaza on brink of running out of fuel in Israeli siege

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?