The National Basketball Association (NBA) is in the midst of finalizing its media rights contracts, with Warner Bros. Discovery currently in the spotlight. The league has presented official terms of its proposed new media rights contracts to Warner Bros. Discovery, giving the media company a five-day window to decide whether to match the broadcasting rights package.
Warner Bros. Discovery has received the contract framework and is currently reviewing the terms. The proposed media rights deal includes agreements with Disney, Comcast's NBCUniversal, and Amazon for different packages of games, totaling $76 billion over 11 years starting from the 2025-26 season. Additionally, the deal encompasses WNBA games valued at $2.1 billion.
Warner Bros. Discovery is expected to match Amazon's package, which includes playoff games and the in-season tournament. There is uncertainty surrounding the next steps once Warner Bros. Discovery formally announces its intention to match, as the NBA may have the right to reject the company's matching rights. Warner Bros. Discovery's Turner Sports, a long-time broadcast partner of the NBA, is preparing to defend its matching rights, citing competition with Amazon's Prime Video.
Losing the NBA rights would have financial repercussions for Warner Bros. Discovery, potentially resulting in a significant loss in profit from advertising and cable affiliate fees. The uncertainty surrounding the media rights negotiations has led to a 23% decline in Warner Bros. Discovery shares this year.
NBA Commissioner Adam Silver has expressed a desire to bring the negotiations to a swift conclusion, acknowledging the impact of the prolonged process on employees and the industry as a whole. The future of the NBA media rights deal and Warner Bros. Discovery's involvement remains uncertain as both parties navigate the complex negotiation process.