NBA formalizing deals with Disney, Amazon, NBC that would begin with the 2025-26 season

Senator Donut

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I assume this is going to be settled in court. I'm surprised the NBA let it get to this point. TNT negotiated matching rights in its last deal presumably in lieu of some other concession. It certainly seems like the NBA and Amazon were not negotiating in good faith, but rather with the purpose of blocking WBD from exercising its rights. Please note that I am not a lawyer.

https://www.hollywoodreporter.com/business/business-news/tnt-sports-match-amazon-nba-rights-bid-1235954481/

It is not clear, however, if the NBA will actually allow WBD to match the deal.

Amazon’s deal is a streaming-only package, while WBD’s TNT Sports televises the games on TNT, and also streams them on Max.

In addition, sports commentator Bill Simmons has said that the deal is structured so that Amazon will pay the NBA three years of rights payments up front to be held in escrow, or a roughly $5.4 billion check. It’s a move that may have been intended to block WBD’s match.​
 
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HomeRunBaker

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Wow this is going to be wild! TNT interprets contract has matching right and the NBA says nope you don’t.

Pass the popcorn please.
 
benhogan

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HomeRunBaker said:
Wow this is going to be wild! TNT interprets contract has matching right and the NBA says nope you don’t.

Pass the popcorn please.
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Now that TNT has played its hand. I'd guess Silver will just create a 4th package for TNT.

Label it "appeasing all the parties" while collecting more revenue.
 
JCizzle

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benhogan said:
Now that TNT has played its hand. I'd guess Silver will just create a 4th package for TNT.

Label it "appeasing all the parties" while collecting more revenue.
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Mike Gorman retired at the right time. He’d be announcing ten games at this rate if everything is moving national.
 
PedroKsBambino

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HomeRunBaker said:
Wow this is going to be wild! TNT interprets contract has matching right and the NBA says nope you don’t.

Pass the popcorn please.
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Has the NBA said it doesn't? All I see in the article is that they are "reviewing the match paperwork" which suggests they agree they could match and are assessing whether they truly did. But I haven't been generally following this one---there maybe other/different stuff elsewhere.
 
HomeRunBaker

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PedroKsBambino said:
Has the NBA said it doesn't? All I see in the article is that they are "reviewing the match paperwork" which suggests they agree they could match and are assessing whether they truly did. But I haven't been generally following this one---there maybe other/different stuff elsewhere.
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I’d guess that it’s more Amazon who will be attacking the legality of a match. This is way above my pay grade so hopefully others in the business can respond here.
 
TheGazelle

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HomeRunBaker said:
I’d guess that it’s more Amazon who will be attacking the legality of a match. This is way above my pay grade so hopefully others in the business can respond here.
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I haven't litigated this sort of provision in the TV rights context (seems pretty niche, but it's SoSH so nothing shocks me), but at a high level if the contract's language is clear then WBD's match will be honored. The problem is that, without the actual language, we're really just guessing. I could pretty easily see disputes about whether WBD is a true "match" under the agreement's terms, etc. - e.g., is WBD actually going to escrow $5.4billion like Amazon was (apparently) going to; is TNT's "steam+network" deal a match on Amazon's "stream only" proposal?

Fake edit: Per this WaPo article, it looks like the NBA is disinclined to accept WBD's offer and will instead contest that WBD's offer is a match, at least partially based on streaming issues.

https://www.washingtonpost.com/sports/2024/07/22/tnt-nba-tv-contract-amazon/
How strong those matching rights are could be in contention. The NBA is hopeful that its terms with Amazon are different enough that WBD’s offer is not a true match. Amazon offers a streaming platform, and TNT is a cable network. And Prime Video has more subscribers than WBD’s streaming platform, Max. Inside TNT, meanwhile, there is belief that the distribution particulars are less important than Amazon’s financial terms, which it will match
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TheGazelle said:
I haven't litigated this sort of provision in the TV rights context (seems pretty niche, but it's SoSH so nothing shocks me), but at a high level if the contract's language is clear then WBD's match will be honored. The problem is that, without the actual language, we're really just guessing. I could pretty easily see disputes about whether WBD is a true "match" under the agreement's terms, etc. - e.g., is WBD actually going to escrow $5.4billion like Amazon was (apparently) going to; is TNT's "steam+network" deal a match on Amazon's "stream only" proposal?

Fake edit: Per this WaPo article, it looks like the NBA is disinclined to accept WBD's offer and will instead contest that WBD's offer is a match, at least partially based on streaming issues.

https://www.washingtonpost.com/sports/2024/07/22/tnt-nba-tv-contract-amazon/
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Not a lawyer but it would seem odd to me that in addition to matching the financials, TNT would also have to "match" the same # of subscribers, exact type of distribution, etc. That's obviously unlikely for a lot of different networks (aside from maybe the basic abc/nbc/abc ones) and makes any matching language pretty useless. As others said, without the contract wording I guess it's hard to say.
 
ifmanis5

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NBC will have:
View: https://twitter.com/TheDunkCentral/status/1815765459620295006

The games that will air on NBC in the future:
- NBA Opening Night
- NBA All-Star Game
- All-Star Saturday Night
- Annual Martin Luther King Day doubleheader
“NBC and Peacock will carry a combined 100 games per regular season, which is more than any other media partner in the deal and more than any partner currently carries. (Though WBD currently airs more games if one includes NBA TV.)”
 
HomeRunBaker

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radsoxfan said:
Not a lawyer but it would seem odd to me that in addition to matching the financials, TNT would also have to "match" the same # of subscribers, exact type of distribution, etc. That's obviously unlikely for a lot of different networks (aside from maybe the basic abc/nbc/abc ones) and makes any matching language pretty useless. As others said, without the contract wording I guess it's hard to say.
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The guess can be assumed that NBA/Amazon included language that they knew (or didn’t feel) TNT would not be able to “match” per the matching language, no?

It sure feels like this is similar to one of those FA deals like to a Hartenstein where the Knicks are only capable of matching up to a certain amount. In this case the dollars is actually the resources that Amazon possesses.

Disclaimer: Of course we are guessing, talking out loud, trying to assume logically, etc which falls under “It’s SoSH.”
 
TheGazelle

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HomeRunBaker said:
The guess can be assumed that NBA/Amazon included language that they knew (or didn’t feel) TNT would not be able to “match” per the matching language, no?

It sure feels like this is similar to one of those FA deals like to a Hartenstein where the Knicks are only capable of matching up to a certain amount. In this case the dollars is actually the resources that Amazon possesses.

Disclaimer: Of course we are guessing, talking out loud, trying to assume logically, etc which falls under “It’s SoSH.”
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I think your first paragraph is right. It sure seems like the $5+ billion escrow was an attempt to poison pill the deal such that WBT couldn't match. Now that they have (or maybe, assuming they have) the NBA may shift to a different argument to try and escape the matching clause.
 
Senator Donut

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John Ourand summed up each party's claims in his Puck News article:

​
As I have noted for weeks, the NBA clearly wants to be in business with Amazon, and structured its deal in such a way that it believed WBD couldn’t match. Bill Simmons first noted on my partner Matt Belloni’s podcast, The Town, that Amazon even offered to put the first three years of its contract in escrow immediately. (In its matching rights document, sources say that WBD included a letter of credit that is able to match this deal point.) “It’s exceedingly clear that the league is trying to pivot to broadcast and digital, and trying to get as far away from cable networks as fast as possible,” LightShed Partners’ Rich Greenfield told me late this afternoon, delineating how the NBA is following the NFL’s well-worn path.​
…​
​
The NBA has long maintained that WBD can only use its matching rights on the “B” package, since it includes linear TV games, that Amazon’s package is considered a streaming-only package, etcetera. But WBD believes it is entitled to bid on Amazon’s package since it includes games that are currently on TNT. Plus, it believes that it can match Amazon’s streaming proposals with Max.​

TheGazelle said:
I haven't litigated this sort of provision in the TV rights context (seems pretty niche, but it's SoSH so nothing shocks me), but at a high level if the contract's language is clear then WBD's match will be honored. The problem is that, without the actual language, we're really just guessing. I could pretty easily see disputes about whether WBD is a true "match" under the agreement's terms, etc. - e.g., is WBD actually going to escrow $5.4billion like Amazon was (apparently) going to; is TNT's "steam+network" deal a match on Amazon's "stream only" proposal?

Fake edit: Per this WaPo article, it looks like the NBA is disinclined to accept WBD's offer and will instead contest that WBD's offer is a match, at least partially based on streaming issues.

https://www.washingtonpost.com/sports/2024/07/22/tnt-nba-tv-contract-amazon/
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Ourand also includes NBC as a party that would have a vested interest in TNT not carrying NBA games (emphasis added).

NBCUniversal executives thought about a lot more than affiliate fees and ad revenue, I’m told, when they bid $2.5 billion per year for the NBA “B” package. Part of NBC’s strategy was predicated on making money in other areas.​
​
For example, by potentially keeping WBD from carrying games, executives at parentco Comcast believe that they will save money when TNT comes up for renewal on Xfinity systems.​
 
InstaFace

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Senator Donut said:
Ourand also includes NBC as a party that would have a vested interest in TNT not carrying NBA games (emphasis added).

NBCUniversal executives thought about a lot more than affiliate fees and ad revenue, I’m told, when they bid $2.5 billion per year for the NBA “B” package. Part of NBC’s strategy was predicated on making money in other areas.​
​
For example, by potentially keeping WBD from carrying games, executives at parentco Comcast believe that they will save money when TNT comes up for renewal on Xfinity systems.​
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Jesus christ if that isn't a blaring antitrust foghorn. It's like what would happen if alcohol production, distribution and retail were allowed to vertically integrate - they'd figure out how to fuck all the little guys involved, plus the consumer, somehow.
 
TomRicardo

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InstaFace said:
Jesus christ if that isn't a blaring antitrust foghorn. It's like what would happen if alcohol production, distribution and retail were allowed to vertically integrate - they'd figure out how to fuck all the little guys involved, plus the consumer, somehow.
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Are you saying AMBev MacroBreweries are bad idea?
 
ifmanis5

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NBA denies the Warner deal. Lawsuits to follow.
View: https://twitter.com/Variety/status/1816207436341993945

NBA Ditches Warner's Bid to Match Amazon Package
“Warner Bros. Discovery’s most recent proposal did not match the terms of Amazon Prime Video’s offer and, therefore, we have entered into a long-term arrangement with Amazon,” the league said in a statement.
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View: https://twitter.com/TheSteinLine/status/1816208333214474333
View: https://twitter.com/ChrisBHaynes/status/1816207535063380282
 
Senator Donut

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Media partner press releases:

https://espnpressroom.com/us/press-releases/2024/07/the-walt-disney-company-and-espn-reach-landmark-11-year-media-rights-extension-with-the-national-basketball-association-and-the-womens-national-basketball-association/

https://www.nbcsports.com/pressbox/press-releases/the-nba-and-wnba-return-to-nbcuniversal-with-11-year-agreement-for-regular-season-and-playoff-basketball-on-nbc-peacock-usa-network-sky-sports-and-telemundo

I haven't seen Amazon post one yet. Most importantly NBC confirmed Roundball Rock will be returning. The NBC release is worth a read. It's interesting how they'll handle Tuesday night doubleheaders.
 
ifmanis5

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Oh great, more Lakers marketing for ESPN.
  • Development of the official The Bubble documentary – a behind-the-scenes look at the 2020 Pandemic-era NBA Playoffs and NBA Finals in quarantine at the Walt Disney World Resort
 
Senator Donut

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Here’s the full statement from TNT

View: https://twitter.com/tntsportsus/status/1816227696441204798


We have matched the Amazon offer, as we have a contractual right to do, and do not believe the NBA can reject it. In doing so, they are rejecting the many fans who continue to show their unwavering support for our best-in-class coverage, delivered through the full combined reach of WBD’s video-first distribution platforms — including TNT, home to our four-decade partnership with the league, and Max, our leading streaming service. We think they have grossly misinterpreted our contractual rights with respect to the 2025-26 season and beyond, and we will take appropriate action. We look forward, however, to another great season of the NBA on TNT and Max including our iconic Inside the NBA.
 
benhogan

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HomeRunBaker said:
Well, TNT announced that they matched so their attorneys must be ready to rock and roll. I don't think this is over yet unless I'm missing something they said.
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I'm still guessing a settlement is in store with the NBA/Silver carving up a smaller package for TNT as a 4th Partner CHECK.
 
K

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Do we know, yet, what this means to the games on NBC Sports Boston? Or the other regional networks?

As a cord-cutter, it'd be great to watch those games elsewhere. But, I had a friend that texted and was worried.
 
benhogan

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kfoss99 said:
Do we know, yet, what this means to the games on NBC Sports Boston? Or the other regional networks?

As a cord-cutter, it'd be great to watch those games elsewhere. But, I had a friend that texted and was worried.
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Nothing is happening for a year, but this is what I'm reading

NBC Universal outbid WBD and others for a package of up to 100 regular-season games per season in order to secure a high-profile property that will bring subscribers to Peacock. But for the NBA, a big part of the appeal was the promise that more than half of those games will air on old-fashioned NBC on Sunday and Tuesday nights. What’s more, the broadcast network model of having local affiliate stations in markets around the country means that NBC can offer different games in different regions to appeal to local fans of various NBA teams. NBCUniversal was motivated to spend big for the NBA to help shore up Peacock – but it was the promise of games airing on NBC that sealed the deal. NBC previously carried NBA games from 1990 to 2002.

The new contracts mark the first time the NBA will have game coverage across two broadcast networks. The new ESPN/ABC pact includes 80 regular-season games, with more than 20 of those to air on ABC. The NBA Finals will remain on ABC as they have since 2003.

Somebody has to pay for this $77B deal & the linear TV/advertising model is dying a slow death.

I still heed the words of my favorite bumper sticker of all time:
Cash, Grass, or Ass...nobody rides for FREE
 
Senator Donut

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CNBC reports WBD is in fact filing a lawsuit today (sorry video link only).

https://www.cnbc.com/video/2024/07/25/warner-bros-discovery-sues-nba-over-matching-rights.html

In another article, CNBC reported some of the exact terms in the matching language.

The NBA cited a provision that said the existing media partner can exercise matching rights “only via the specific form of combined audio and video distribution (e.g. if the specific form of combined audio and video distribution is internet distribution, a matching incumbent may not exercise such games rights via television distribution).”

https://www.cnbc.com/2024/07/24/nba-picks-amazon-for-media-rights-over-warner-bros-discovery.html

EDIT: the market seems to think poorly of WBD's chances. The stock is down 5% and TNT Sports is a relatively small part of the Warner media conglomerate.
 
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wade boggs chicken dinner

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ifmanis5 said:
Who gets what:

View attachment 86093
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Interesting. I wonder what "Amazon to Serve as Strategic Partner and Third-Party Global Destination of NBA League Pass". That could be good for the service, not-so-good for our pocketbooks.

If Amazon really is taking over League Pass, I suspect NBA's attorneys are going to rely on this (among other things) as one of the critical pieces that WBD did not - and could not - match.

Only the attorneys who have seen the actual matching language in the contracts could properly analyze the cases and even then we have two apparently very different sets of interpretations (WBD saying that it believes the NBA "grossly misinterpreted" the contract language is typically used when the company thinks it has a pretty strong case but I got to think that there's more to the match than just "financial terms."

Man, Restricted Free Agency really is a bear. :)
 
lovegtm

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wade boggs chicken dinner said:
Interesting. I wonder what "Amazon to Serve as Strategic Partner and Third-Party Global Destination of NBA League Pass". That could be good for the service, not-so-good for our pocketbooks.

If Amazon really is taking over League Pass, I suspect NBA's attorneys are going to rely on this (among other things) as one of the critical pieces that WBD did not - and could not - match.

Only the attorneys who have seen the actual matching language in the contracts could properly analyze the cases and even then we have two apparently very different sets of interpretations (WBD saying that it believes the NBA "grossly misinterpreted" the contract language is typically used when the company thinks it has a pretty strong case but I got to think that there's more to the match than just "financial terms."

Man, Restricted Free Agency really is a bear. :)
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Might be decent for our pocketbooks, since I imagine they'd try and bundle it with other Amazon stuff many of us already use, like Prime.
 
wade boggs chicken dinner

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lovegtm said:
Might be decent for our pocketbooks, since I imagine they'd try and bundle it with other Amazon stuff many of us already use, like Prime.
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Yeah, I sometimes forget I'm a Luddite. I try not to use Amazon unless I absolutely have to. I'm hoping that I don't have to subscribe to Prime to get the games.
 
ifmanis5

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And we officially have a lawsuit.
View: https://twitter.com/WALLACHLEGAL/status/1816868886727266763

BREAKING: TBS and Warner Brothers Discovery have just filed a lawsuit against the NBA in New York County Supreme Court over the league’s rejection of WBD’s attempted match of the Amazon media rights bid
View: https://twitter.com/TheDunkCentral/status/1816880600311042406

View: https://twitter.com/Variety/status/1816881039022682234

Warner Bros. Discovery took its efforts to keep NBA games on its cable and streaming properties to court Friday, filing a suit against the NBA in the Supreme Court in the State of New York.
 
astrozombie

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Good for TNT I suppose, since I have generally liked their coverage, but I get the overwhelming sense that the NBA wants other partners. Maybe for more money. Maybe for more national exposure. Maybe they don't like dealing with Zaslav. But whatever the reason, this seems awkward because the NBA seems to actively not want this any more. And I say that as someone who believes TNT is probably correct in their interpretation of the contract.
This has the same energy as two people who break up and while one is dating other people, the other is insisting they both honor the agreement they made while they were dating to go to prom together.
 
wade boggs chicken dinner

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Sportico with a pretty detailed description of the arguments here: https://www.sportico.com/law/analysis/2024/nba-wbd-tbs-tnt-lawsuit-1234791077/

I suppose the argument is going boil down to whether WBD distribution is different - and if so, how different - from Amazon distribution.

Didn’t realize there’s an arbitration clause. I suppose theNBA will invoke that.

The N A must really want to get out of the WBD business
 
The Social Chair

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The NBA isn't confident that WBD will exist in 11 years. The weakest media company now that Paramount has new owners.
 
ManicCompression

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IANAL but doesn’t the endgame here for WBD seem like a settlement? I don’t think they really believe they’ll retain broadcasting rights using this strategy. And how much would the NBA pay to keep the details of these contracts and their comms with their partners out of discovery?
 
wade boggs chicken dinner

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ManicCompression said:
IANAL but doesn’t the endgame here for WBD seem like a settlement? I don’t think they really believe they’ll retain broadcasting rights using this strategy. And how much would the NBA pay to keep the details of these contracts and their comms with their partners out of discovery?
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Well, the contract (or substantially all of it) was an exhibit to the complaint so that cat is out of the bag.

Five interesting clauses from the TNT-NBA contract here: https://www.sportico.com/business/media/2024/nba-turner-tnt-contract-details-1234791153/
 
ManicCompression

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ManicCompression said:
IANAL but doesn’t the endgame here for WBD seem like a settlement? I don’t think they really believe they’ll retain broadcasting rights using this strategy. And how much would the NBA pay to keep the details of these contracts and their comms with their partners out of discovery?
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Seems like a settlement is going to be the endgame to me as well.

I'm sure the NBA regrets giving TNT this matching clause to begin with, and it's now clear they want to move on. From TNT's perspective, it would be very awkward to continue with the NBA after this.

I can see how TNT will claim this matching clause was worth X in their previous agreement (i.e. they would have paid the NBA less if the clause didn't exist). The NBA will say TNT didn't truly "match", but in the end the NBA will probably pay a decent amount of $ to TNT to make this disappear and save the legal fees.
 
wade boggs chicken dinner

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I found this article from THR on the NBA TV deals - it describes the deals as a "massive transfer of wealth from Hollywood to sports leagues" - super interesting: https://www.hollywoodreporter.com/business/business-news/nba-tv-rights-deals-1235962457/. One part:

The NBA deals arrive as the entertainment business is already in a state of contraction. TV networks and streaming services have been rationalizing their budgets, which are either flat or increasingly down, as everyone except Netflix seeks to make unprofitable streaming businesses into something that can actually make money.​
​
Netflix, meanwhile, seems content to keep its content budget more or less flat — but is spending more of it on live events, be it low nine figures for a pair of Christmas NFL games, or $500 million per year on the WWE.​
​
Across the world of entertainment, sports appear to be eating up more of the overall budget. Disney said that it expects to spend $25 billion on content this year, down from $27 billion in 2023. Forty percent of its content budget is dedicated to sports and sports-adjacent programming. ​
​
“There’s less money overall, and more of that money is being allocated toward sports,” says Jonathan Miller, a former NBA executive who serves as CEO of Integrated Media, which specializes in digital media investments. “The sports audience is a more or less a guaranteed audience: predictable, you can sell against it, you kind of know where it’s going to fall within ranges.” ​
 
TripleOT

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ifmanis5 said:
What a surprise, Chuck got PAID.
View: https://twitter.com/AndrewMarchand/status/1820874327912255655

FULL STORY: Charles Barkley will not retire and will remain at TNT Sports to complete his 10-year, $210 million deal even with the network slated to lose the NBA after next season.
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Tough to give up $140 million when all you have to do to earn it is to sit in a studio and talk.

Assuming TNT doesn’t win their case and doesn’t have NBA rights after this season, what are they going to do with Barkley? Use him to spice up their NHL studio show? Do they let him go to one of the NBA broadcast partners so they can get out from under the $120 million they will owe him?
 
Van Everyman

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TripleOT said:
Assuming TNT doesn’t win their case and doesn’t have NBA rights after this season, what are they going to do with Barkley? Use him to spice up their NHL studio show?
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Maybe:

The two sides now agree that Barkley will not be going anywhere. While TNT Sports is trying its Hail Mary attempt to hold onto the NBA, Barkley will still be utilized on its NCAA Tournament coverage that TNT Sports combines with CBS, while it could explore opportunities with its other properties, including the NHL.
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