With the National Basketball Association’s media rights nearing their final form, Warner Bros. Discovery is about to make its game.
The league sent out the official terms of the proposed new media rights contacts Discovery by Warner Brosstarting a five-day period where the media company can choose to assign a broadcast rights package.
A TNT spokesperson confirmed receipt of the documents and acknowledged that the company is currently reviewing the terms. Warner Bros. Discovery received the contract framework Wednesday night, according to people familiar with the matter, who asked not to be identified because the details are private.
The media rights agreement, as currently structured, includes agreements with Disney, of Comcast NBCUniversal and Amazon for three different game packages totaling $76 billion over 11 years starting in the 2025-26 season. It also includes WNBA games, worth $2.1 billion of the total.
Warner Bros. Discovery plans to match a gaming package intended for Amazon, as CNBC first reported in Maywhich includes both playoff games and the in-season tournament, according to people in the know. Amazon signed a deal with the NBA to pay $1.8 billion a year for its package, they said.
The next steps are not clear
When Warner Bros. Discovery officially announces its intention to match, it’s unclear what happens next. The NBA may or may not have the right to decline Warner Bros.’s matching rights. Discovery and the league have been working with their lawyers for months to prepare for a possible lawsuit, according to people familiar with the matter.
Turner Sports by Warner Bros. Discovery has been a broadcast partner of the NBA for nearly 40 years. The company plans to argue that its matching rights — a suspension from the current media rights deal — apply to Amazon’s game bundle, even though that bundle is intended for a streaming-only service. Along with its cable network TNT, Warner Bros. Discovery owns Max, a competitor to Amazon’s Prime Video.
However, Max has fewer subscribers than Prime Video, at around 100 million compared to over 200 million monthly subscribers worldwide. NBA rights are for the US only.
TNT also hosts “Inside the NBA,” the popular NBA studio show featuring Ernie Johnson, Charles Barkley, Kenny Smith and Shaquille O’Neal. Barkley has already said plans to retire from the show after next season, regardless of the outcome of the media rights deal.
“I don’t know yet,” NBA Commissioner Adam Silver said earlier this week at a press conference when asked what may or may not happen regarding Warner Bros. Discovery or the NBA network, NBA TV, which is operated by TNT Sports. “We’ll see.”
Losing the NBA would be a blow to Warner Bros. Discovery, which could lose about $600 million in advertising revenue and a possible cut in cable partner fees if it loses the NBA, Wolfe Research media and entertainment analyst Peter Supino told MarketWatch. earlier this week.
Shares of Warner Bros. Discovery is down 23% this year.
“I apologize that this has been a drawn-out process, because I know they are dedicated to their work,” Silver said. last month of Warner Bros. employees. Discovery working on NBA programming. “I know people who work in this industry, it’s a big part of their identity and their family’s identity, and nobody likes that uncertainty. I think it’s up to the league office to get those negotiations going and get them done as quickly as we can.”
Disclosure: Comcast’s NBCUniversal is the parent company of CNBC.