Warner Bros. Discovery has announced its intention to match Amazon’s bid for a substantial NBA game package, signaling a competitive showdown over broadcasting rights.
In a statement released Monday, Warner Bros. Discovery (WBD) expressed its commitment to maintaining its longstanding partnership with the NBA by matching the approximately $1.8 billion per year bid from Amazon. This bid amounts to over $20 billion over the deal’s duration. While WBD did not directly name Amazon, sources indicate that their bid is aimed at countering the tech giant’s offer.
“In an effort to uphold our enduring partnership with the NBA, we have consistently submitted competitive bids during both exclusive and non-exclusive negotiation periods,” TNT Sports stated. “Unfortunately, the league has informed us of its intention to accept other offers for our current rights package, necessitating our exercise of the matching rights provision integral to our existing agreement.”
The statement continued, “After thorough review of the offers, we have matched one of them. Our matching documentation has been submitted to the league today, and we eagerly anticipate finalizing our new contract with the NBA.”
However, it remains uncertain whether the NBA will approve WBD’s matching offer. An NBA spokesperson responded, “We have received WBD’s proposal and are currently reviewing it.”
Amazon’s deal focuses solely on streaming, contrasting with WBD’s approach through TNT Sports, which televises games on TNT and streams them on Max.
Additionally, sports commentator Bill Simmons has noted that Amazon’s deal involves an upfront payment of three years’ worth of rights fees, totaling approximately $5.4 billion, which might complicate WBD’s matching efforts.
Sources familiar with the situation indicate that Warner Bros. Discovery has secured a letter of credit to cover the required payment.
The decision to match comes after prolonged negotiations between the NBA and its current and potential partners, culminating in WBD’s inability to reach a new agreement during its exclusive negotiating period.
Following these developments, NBC Sports is set to acquire the “B” package for around $2.5 billion annually, while Amazon is positioned to secure the “C” package for approximately $1.8 billion annually. Disney will continue to hold the “A” package, which includes broadcasting rights for the NBA Finals.
The next steps are uncertain, with potential outcomes including a settlement between parties or a legal dispute initiated by WBD if their match is rejected by the league. Such a lawsuit could hinge on defining what constitutes a valid “match” in rights negotiations, echoing recent legal battles in sports broadcasting.
Meanwhile, the fate of TNT’s iconic sports studio show, Inside the NBA, remains in question beyond the upcoming season. Hosted by Charles Barkley, Shaquille O’Neal, Kenny Smith, and Ernie Johnson, the show’s future hinges on the NBA rights decision, with Barkley hinting at possible retirement from television after the next season if WBD loses the rights.
The situation continues to evolve, with stakeholders eagerly awaiting the NBA’s decision and its implications for the broadcasting landscape and sports media industry.
