Warner Bros Discovery has officially exercised its matching rights on the NBA’s new media rights deal to keep airing games on Max and possibly TNT. The company released the following statement, which doesn’t specific the package they plan on matching but reports have indicated it will be Amazon’s deal worth $1.8 billion per year. Amazon’s new deal is a streaming only package, while WBD has broadcast games on both Max and TNT.
Amazon’s deal includes putting $5.4 billion in escrow, which was considered a likely challenge for WBD considering their debt obligations. A source tells The Hollywood Reporter that WBD has secured a letter of credit that would cover the payment.
The Athletic reports that the NBA is expected to decline WBD’s right to take the Amazon package as the league’s preference is to move forward with a new partner. The issue could lead to litigation between the NBA and WBD.
“We’re proud of how we have delivered for basketball fans by providing best-in-class coverage throughout our four- decade partnership with the NBA. In an effort to continue our long-standing partnership, during both exclusive and non-exclusive negotiation periods, we acted in good faith to present strong bids that were fair to both parties.
“Regrettably, the league notified us of its intention to accept other offers for the games in our current rights package, leaving us to proceed under the matching rights provision, which is an integral part of our current agreement and the rights we
have paid for under it.
“We have reviewed the offers and matched one of them. This will allow fans to keep enjoying our unparalleled coverage, including the best live game productions in the industry and our iconic studio shows and talent, while building on our proven 40-year commitment for many more years.
“Our matching paperwork was submitted to the league today. We look forward to the NBA executing our new contract.”
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