Ron Chenoy/USA Today Network
NEW YORK — The NBA formalized written agreements with Disney, NBC and Amazon this week, a move that people familiar with the matter said represents the final stage of media rights negotiations and could make legal action by incumbent Warner Bros. Discovery inevitable.
Industry insiders believe ESPN will end up paying $2.8 billion annually, though other industry insiders insist it’s still the previously reported $2.6 billion, but the league’s The “A” package would include the NBA Finals, conference finals, weekly prime-time games, the WNBA, and presumably shared international rights. NBC’s proposed “B” package is thought to be worth $2.5 billion to $2.6 billion annually, and would likely include “Basketball Night in America” or “Sunday Night Basketball” after the NFL season, i.e. will include a total of two prime-time slots. semifinals and conference finals. Amazon’s deal is believed to be worth between $1.8 billion and $2 billion and is likely to include the Emirates In-Season Tournament, SoFi Play-In Tournament, first round playoffs, WNBA and international rights.
Officials said the final arrangements are fluid and changing almost every other day, but are expected to be finalized in the coming days or weeks, at which point all three networks will have their respective A contract with the guidance group will be signed, officials said, and was approved. At that point, officials said the league will bring the NBC deal to WBD to see if WBD’s CEO will take over. David Zaslav You can compare by “total value”.
Given that WBD is $400 million in debt and doesn’t have NBC’s over-the-air infrastructure, sources believe WBD would have to pay more than $2.6 billion to match the deal, and NBC’s overall bid could be structured in such a way that it would be virtually impossible for WBD to match (e.g., multiple over-the-air games per week). In that case, Zaslav essentially has three options: forgo the NBA, pay significantly more for a “B” package, or take the NBA to court over the definition of the game, according to the people.
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In this case, officials say the league argues that games are not dollar-for-dollar, and specifically that games must include the same advertising revenue, broadcast slots, etc.; He says he doesn’t agree. Officials said the NBA is preparing its lawyers for possible questioning and litigation.
It is also becoming clear how WBD got to this dangerous stage of negotiations. During the exclusive negotiation period between Disney and WBD’s WBD from mid-March until April 22, industry sources say Disney was determined not to bring the “A” package to market. As a result, Disney is said to have doubled, or nearly doubled, his previous rights fee of $1.4 billion a year to $2.8 billion.
But the same sources say Zaslav (whose company paid him $1.2 billion in NBA media rights fees a decade ago) will need to pay between $1.8 billion and $2.1 billion to keep the “B” package this time around. He said he refused to double the contract because he believed he had to pay only dollars. 2.4 billion dollars. That’s why bids went into the market and NBC got involved. If WBD does indeed lose the NBA, 2024-25 would be his last season under his current contract.
