“At the heart of the NBA”
Courtesy of TNT Sports
Warner Bros. Discovery is trying to retain NBA rights, telling the league it will match Amazon’s offer for a bundle of games.
The company said in a statement Monday afternoon that it intends to match Amazon’s offer, which is valued at about $1.8 billion a year, or more than $20 billion over the life of the deal. WBD did not mention Amazon by name, but a source said it is targeting the tech giant’s offer.
“In an effort to continue our long-standing partnership, during both the exclusive and non-exclusive negotiation periods, we acted in good faith to present offers that were sound and fair to both parties,” TNT Sports said in a statement. “Unfortunately, the league has informed us of its intention to accept other offers for games in our current rights agreement, leaving us to proceed under the matching rights clause, which is an integral part of our current agreement and the rights we have paid thereunder.”
“We reviewed the offers and selected one,” the statement continued. “Our reference documents were submitted to the league today. We look forward to the NBA executing our new contract.”
It is unclear, however, whether the NBA will actually allow WBD to match the proposed amount. An NBA spokesman responded: “We have received WBD’s proposal and are reviewing it.”
Amazon’s deal is for a streaming-only package, while WBD’s TNT Sports airs games on TNT and also streams them on Max.
Additionally, sportscaster Bill Simmons said the deal is structured so that Amazon will pay the NBA three years of broadcast rights up front, a check for about $5.4 billion. This is a move that may have been intended to block the WBD game.
A source familiar with the matter says Warner Bros. Discovery has obtained a letter of credit that would cover the payment.
The decision to equalize those rights came after months of protracted negotiations between the league and current and potential rights partners, with WBD ultimately unable to reach a new deal within its exclusive negotiating window with the league.
The NBA then found new partners for the broadcast rights: NBC Sports, which is expected to get the “B” package for about $2.5 billion per year, and Amazon, which will get the “C” package for about $1.8 billion per year. Disney will remain the NBA’s partner for the “A” package, including the NBA Finals.
What happens next is unclear, but the two most likely outcomes, according to multiple sources, are either some sort of settlement or a lawsuit by WBD.
A deal could see both sides agree to some sort of deal — either a small fourth rights package for TNT Sports, or a cash payment or other offer from the league to WBD. Or if the league rejects the match outright, a potential lawsuit from WBD would allow a judge to determine what constitutes a “match” in terms of rights.
As the NFL recently demonstrated in its antitrust lawsuit against Sunday Ticket, these things can be unpredictable.
TNT Sports’ announcement also means that At the heart of the NBATNT’s venerable and long-running studio show, remains in flux after next season. The show is widely regarded as one of the best — if not the best — sports studio shows on television, thanks in large part to the chemistry of hosts that include Charles Barkley, Shaquille O’Neal, Kenny Smith and Ernie Johnson. All four hosts have signed long-term contracts through 2022, but Barkley has claimed he has a clause in his contract that could allow him to move on if WBD loses the NBA rights.
Barkley, after previously saying he would be tempted to restart At the heart of the NBA (or a similar show) on its own if TNT Sports loses its NBA rights, said last month that it plans to exit television after next season.
