It’s the latest turn in what’s been a relatively messy renegotiation for Warner Bros. Discovery, one of two incumbent holders of National Basketball Association (NBA) rights, along with Disney. Warner’s Turner Sports has carried NBA games for nearly 40 years.

Warner Bros. NBA rights deal with Disney

Warner Bros. Discovery continues to consider partnership with the NBA to broadcast a package of games as the league plans its next media partners, as per sources.

The league is close to signing deal with Disney, NBCUniversal and Amazon for three different packages of games. If that happens without a side agreement with Warner Bros. Discovery, its CEO, David Zaslav, will have a chance to leverage matching rights that were secured as part of its previous deal with the league.

Under the terms of that agreement, which runs out after the 2024-25 season, Warner Bros. NBA rights can match a competing bid for the games it currently licenses from it. It has not yet seen the three potential packages, as NBA officially needs to sign the agreements with potential media partners.

Amazon’s offer to NBA

Amazon has reportedly offered $1.8 billion a year for a slate of games, while NBCUniversal has offered about $2.5 billion per year. The league has set up frameworks for both deals but hasn’t yet signed paperwork formalizing the bids. When it does, Warner Bros. Discovery will have five days to match, all as per sources.

If the current slate of NBA games aired on TNT is split into two or more packages, Warner Bros. Discovery believes it has the right to match any of those offerings, or at least the parts of them that include the current TNT games, according to people familiar with the company’s thinking.

Spokespeople for the NBA, Warner Bros. Discovery and NBCUniversal declined to comment. Representatives from Amazon didn’t immediately respond to a request for comment.

Warner Bros. matching Amazon’s deal

“We’ve had a lot of time to prepare for this negotiation, and we have strategies in place for the various potential outcomes,” Zaslav said earlier this month during Warner Bros. Discovery’s quarterly earnings conference call. “We have matching rights that allow us to match third-party offers before the NBA enters into an agreement with them.”

That could gum up an NBA deal with either NBCUniversal or Amazon or potentially lead to a lawsuit between Warner Bros. Discovery and the league. It’s unclear if the league can reject Warner Bros. Discovery’s matching rights if it chooses a different partner.

Warner Bros. Discovery is interested in a more affordable package of games given its gross debt of about $42 billion double its current market capitalization of about $20 billion.

What NBA wants?

The NBA wants a robust streaming offering as a third package to extend the reach of its product beyond cable TV. Warner Bros. Discovery owns both cable network TNT and its flagship streaming service, Max, which is expanding internationally.

Still, unlike Amazon’s Prime Video streaming service, Max plans to tier its sports offerings to customers, forcing them to pay more and potentially diminishing reach, which the NBA may not prefer.

Zaslav’s strategic move for Warner Bros.

It’s possible Zaslav’s focus on Amazon may be a strategic move to get a settlement from the league by focusing on a package specifically designed for a big tech streamer.

As per Zaslav NBCUniversal is overspending for the NBA, as per sources familiar with the matter.

An offer of $2.5 billion or more would more than double the NBA’s previous asking price of $1.2 billion, and the new package would contain fewer games because of the introduction of a third media partner.

Warner Bros. Discovery could use the money saved from not spending on the NBA for other sports, including UFC, which will likely sign a new rights deal next year.

The NBA on NBC

Zaslav views NBCUniversal as a direct competitor in a fight for survival among legacy media companies, according to people familiar with his thinking.

If Warner Bros. Discovery chooses to match a potential Amazon package for the rights or stand down completely, it would clear the way for the NBA to get back in business with NBCUniversal, which lost league rights in 2002.

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