Warner Bros. Discovery Matches Amazon NBA Billion-Dollar Contract Offer
Paves Way for TNT To Remain in Association, Or Does it?
Warner Bros. Discovery waited until the final day before deciding whether to remain in the NBA game. Media rights deals involve billions of dollars. WBD decided to keep playing by matching Amazon’s $1.9B offer, securing an NBA million-dollar contract.
TNT Sports’ statement on NBA media rights: pic.twitter.com/PteJJKJO5x
— TNT Sports U.S. PR (@TNTSportsUS) July 22, 2024
“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” TNT said in a statement. “In an effort to continue our long-standing partnership, during both exclusive and nonexclusive negotiation periods, we acted in good faith to present strong bids that were fair to both parties. We look forward to the NBA executing our new contract.”
WBD Needed Line of Credit
That could settle things or it could open a legal kerfuffle. According to basketball news reports, Amazon included a “poison pill” in its offer that would challenge WBD. The first three years of the Amazon offer, about $5.85B, would be placed in escrow and paid upfront.
Sports Business Journal reported Monday that WBD secured a line of credit now covered by the letter of credit and is “good for it” — potentially leading to a lawsuit, settlement, or a renegotiated fourth package that could enable Turner Sports to continue broadcasting the NBA million-dollar contract.
The NBA must now review the WBD/TNT offer and decide whether to accept it. If the Association balks and tries to go with Amazon, WBD/TNT could sue the league. That would set up a situation this upcoming season where the league and a TV partner engaged in ongoing litigation.
The “A” and “B” packages will go to ESPN and NBC, which reenters the game after losing the NBA contract decades ago. There is a belief that after the NFL finishes its season with the Super Bowl, NBA games would be televised in one form or another seven days a week on a national basis.
Inside the NBA’ Could Remain ALive
If WBD secures the package it has matched, it would enable it to continue with the beloved “Inside The NBA” show that has earned accolades for years. That panel features Charles Barkley, Shaquille O’Neal, Ernie Johnson, and Kenny Smith. Barkley has stated he plans to retire after 2024-25 but with TNT still in the game that could change.
Now, while Amazon appears to have lost in bidding for NBA rights, the legal question remains regarding WBD’s standing to match. The NBA did not issue a comment on WBD’s action but it is known the league was looking for an international partner such as Amazon.
Per SBJ: Commissioner Adam Silver has made it clear he prefers an international streaming entity to be a media partner. Amazon claims its reach is 200 million worldwide, while critics say that is simply their retail reach. Max, which would simulcast NBA games for WBD alongside TNT, has a domestic reach of roughly 100 million.
What is certain is the NBA, despite mundane TV ratings, is about to land billions of dollars. The overall packages will total $77 billion through their run. That’s a lot of dough no matter who forks it over to the Association for the NBA million-dollar contract.
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