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Warner Bros. Discovery Matches Rival Offer to Retain N.B.A. Broadcast Rights

In a strategic move to retain its longstanding broadcast rights, Warner Bros. Discovery announced on Monday that it has matched a competing offer to air NBA games. This decision comes as the NBA negotiates new broadcasting contracts for the upcoming seasons, aiming to secure lucrative deals.

Amazon, a new entrant in the bidding war, had proposed a deal worth over $1.9 billion per season. According to sources familiar with the discussions, Warner Bros. Discovery exercised its matching rights provision, a clause in its current contract allowing it to match any competing offers to retain the broadcasting rights.

The NBA’s new broadcasting contracts, starting from the season after next, have already been approved by the league’s board of governors. These deals involve major players like Disney, Comcast, and Amazon, and are expected to generate approximately $76 billion over the next 11 years. Under the previous contract, Disney and Warner Bros. Discovery paid around $2.66 billion annually.

Warner Bros. Discovery, a longtime broadcaster of NBA games since the 1980s, airs its games primarily on TNT. The channel is also known for the popular show “Inside the NBA,” featuring Charles Barkley, Kenny Smith, Shaquille O’Neal, and Ernie Johnson. Despite the robust history, Warner Bros. Discovery faced competition as the NBA explored more diversified and potentially lucrative streaming options.

Amazon’s proposed package includes broadcasting a conference finals series every other year, in addition to the league’s in-season and play-in tournaments. These games would be streamed exclusively on Amazon’s Prime service, introducing a digital-first approach to NBA broadcasting.

This shift towards streaming presents a potential challenge in the negotiations. While Warner Bros. Discovery broadcasts games on TNT, it has also adapted by simulcasting games on its streaming service, Max. The integration of streaming services is crucial as it reflects changing consumer behaviors and the growing importance of digital platforms in sports broadcasting.

Warner Bros. Discovery had an exclusive negotiating window, similar to Disney. While Disney successfully reached an agreement within this period, Warner Bros. Discovery did not. The NBA’s decision to accept other offers for the games in Warner Bros. Discovery’s current rights package triggered the activation of the matching rights provision.

If the NBA declines Warner Bros. Discovery’s matched offer, the two parties are expected to continue negotiations. Should an agreement remain elusive, Warner Bros. Discovery may consider legal action to enforce its rights. Warner Bros. Discovery’s commitment to retaining NBA rights underscores the high stakes and fierce competition in the sports broadcasting arena. As the NBA finalizes its new contracts, the outcome will significantly shape the future of how fans access and consume NBA content.