NBA formalizing media deals with Disney, Amazon, NBC

NBA formalizing media deals with Disney, Amazon, NBC

Ron Chinoy/USA Today Network

NEW YORK — The NBA is formalizing written contracts with Disney, NBC and Amazon this week, with sources describing it as the final stage of media rights negotiations that could inevitably lead to… Warner Bros. Discovery To take legal action.

Industry sources believe ESPN will eventually pay $2.8 billion annually — though other industry sources insist it is still a previously reported $2.6 billion — for the league’s “A” package, which includes the NBA Finals, the Conference, weekly prime-time games, WNBA and international rights will likely be shared. NBC’s proposed “B” package is believed to be worth between $2.5 billion and $2.6 billion annually and would likely include “Basketball Night in America” ​​or “Sunday Night Basketball” after the NFL season, in total prime-time windows Weekly, conferences. Conference semifinals and finals. The Amazon deal is believed to be worth between $1.8 billion and $2 billion, and would likely include the Emirates In-Season Championship, SoFi Play-In Championship, first-round playoff games, and WNBA and international rights.

The final adjustments — which the sources said were fluid and changed almost every day — are expected to be finalized in the next days or week, at which time the sources said the three networks will go to their respective leadership groups to get their contracts approved. At that point, sources said the league would transfer the NBC contract to WBD to see if WBD CEO David Zaslav Able to match it in ‘total value’.

Given that WBD is $40 billion in debt and does not have the over-the-air infrastructure of NBC, sources believe that WBD would need to pay more than $2.6 billion to match the deal and that NBC’s overall offering could be structured in some way (e.g., multiple weekly over-the-air games) Which makes it almost impossible for WBD to equal. Sources said Zaslav would then have three options: reject the NBA, grossly overpay for Package B, or file a lawsuit against the NBA over the playoff definition.

RELATED: A joint NBA package for NBC and TNT is not in the cards.

At the event, sources said the league would confirm that the matchup was non-dollar, and that the matchup, specifically, would need to include the same advertising revenue, broadcast windows, etc. — something WBD apparently disagrees with. The sources said the NBA is preparing its lawyers for an investigation or possible lawsuit.

It has also become clear how the World Bank reached this perilous point in the negotiations. During the exclusive negotiating window between Disney and WBD from mid-March to April 22, industry sources said Disney was firm about not letting Package A go to the open market. So it allegedly doubled or nearly doubled its old rights fees of $1.4 billion a year to $2.8 billion.

But those same sources said Zaslav — whose company paid $1.2 billion for NBA media rights a decade ago — believes he will have to pay between $1.8 billion and $2.1 billion just to keep this Package B. This time, he refused to double the amount of $2.4 billion. That’s why bidding entered the market and why NBC jumped. If WBD does, in fact, lose the NBA, the 2024-2025 season would be his final season under the current deal.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

Back to top button

Adblock Detected