NBA Finalizing Media Rights Deals with Disney, NBC, and Amazon
The NBA is in the final stages of formalizing written contracts with Disney, NBC, and Amazon for their media rights, with ESPN expected to pay $2.8 billion annually for the league’s “A” package. NBC’s proposed “B” package is believed to be worth between $2.5 billion and $2.6 billion annually, while Amazon’s deal is estimated to be worth between $1.8 billion and $2 billion.
The negotiations have been fluid and changing almost daily, with the final tweaks expected to be completed in the coming days or week. Once the contracts are finalized, the networks will seek approval from their respective leadership groups. At that point, the league will present NBC’s contract to Warner Bros. Discovery (WBD) CEO David Zaslav to see if WBD can match the deal in total value.
Sources believe WBD, which is $40 billion in debt, would need to pay more than $2.6 billion to match NBC’s offer. If WBD is unable to match the deal, they may have to pass on the NBA, overpay for the “B” package, or take legal action over the definition of a match.
The NBA is preparing its lawyers for a possible lawsuit if WBD challenges the definition of a match. The negotiations have shed light on how WBD reached this precarious point, with Disney doubling its old rights fee to secure the “A” package and NBC entering the bidding when WBD refused to meet their price for the “B” package.
If WBD loses the NBA rights, the 2024-25 season will be its final under the current deal. The outcome of the negotiations will have significant implications for the future of NBA broadcasting rights.