Day: May 22, 2024

TNT is on the verge of losing the NBA after the 24-25 season with Tom Friend of the Sports Business Journal reporting on how Warner Bros. Discovery CEO David Zaslav mishandled negotiations with the league.

While ESPN was firm on wanting to retain the “A” package and not letting it go to the open market by doubling its old rights fees from $1.4 billion per season to $2.8 billion, Zaslav believed he would only have to pay between $1.8 billion and $2.1 billion to retain the “B” package and refused to double it to $2.4 billion.

WBD entered negotiations believing they could ultimately match any offer the NBA received for the package, but the league’s contention is they cannot necessarily match it on a dollar-for-dollar basis.

The NBA subsequently agreed to a $2.6 billion deal with NBC that virtually make it impossible for TNT to equal.

WBD is believed to be preparing to sue the NBA over the issue.

The NBA is formalizing media rights contracts with ESPN, NBC and Amazon this week with sources telling the Sports Business Journal that it is the final stage of negotiations. Deals with the three providers are expected to return over $7 billion per year for the NBA.

ESPN will pay $2.8 billion annually, which is up from an initially reported $2.6 billion for the NBA’s “A” package. That package includes the NBA Finals, a conference final, weekly primetime games, the WNBA and likely shared international rights.

NBC’s “B” package is believed to be worth $2.6 billion annually would probably include a “Basketball Night in America” on Sunday nights following the NFL season, a total of two primetime windows a week, conference semifinals and a conference final.

Amazon’s deal is believed to be worth between $1.8B and $2B and would likely include the Emirates In-Season Tournament, the SoFi Play-In Tournament, first-round playoff games, the WNBA and international rights.

The final changes to the deals have been fluid and changing, but expected to be finalized in the coming days or week. Once the written bids are ratified, the NBA will take NBC’s contract to Warner Bros. Discovery to see if they can match it in “total value.”

WBD may enact legal action over the rights. It’s believed that the TNT parent company could contest its right to match the NBC deal. The NBA and WBD apparently have different definitions of what matching a deal would consist of.