A view of the NBA on TNT logo on a broadcast camera before the start of the third quarter of Game 4 of the Western Conference Second Round Playoffs between the Denver Nuggets and Minnesota Timberwolves at Target Center on May 12, 2024 in Minneapolis, Minnesota.
David Berding | Getty Images
Warner Bros. Discovery agreed to end its pursuit of ownership of a package of live National Basketball Association games in the United States for the 2025-26 season and beyond and to resolve all litigation with the league.
Warner Bros. Discovery sued the NBA in July, saying the league did not allow the media company to use its so-called matching rights for a package of live games.
The league selected three media partners – Disney, Comcast's NBCUniversal and Amazon Prime Video will distribute live games in the US for 11 years starting next season. The total value of the deal, including WNBA games, was about $77 billion, CNBC previously reported.
The settlement with Warner Bros. Discovery announced Monday, as well as a separate agreement between WBD and ESPN, will keep the company in the mix with some NBA content, production partnerships and licensing deals. However, after this season, Turner Sports' 40-year relationship with the NBA as a provider of live games in the United States will officially end.
Turner Sports has had an NBA package since 1984, with games broadcast on cable channel TNT since 1988. The NBA decided to abandon Warner Bros. Discovery as a media partner for several reasons, including losing confidence in the long-term future of cable television as a way to reach younger audiences.
Disney and Comcast have broadcast networks to show NBA games, and Amazon's package is streaming-only.
The terms of the settlement give WBD's TNT Sports free access to highlights for the company's digital news site Bleacher Report and its social media platform House of Highlights for the next 11 years, according to a person familiar with the details. The deal also allows Warner Bros. Discovery to license, create and distribute new and existing NBA content across its media assets and includes live game rights in the Nordics, Poland and Latin America, excluding Brazil and Mexico.
The agreement also extends a partnership between NBA Digital and TNT Sports for five seasons, allowing the NBA to hire Warner Bros. Discovery to provide advertising and “a variety of services, including production, content development and distribution services.” said in a statement.
The settlement gives Warner Bros. Discovery guaranteed revenue from the NBA for years. The league will not pay WBD any additional money for those services beyond the terms of the agreement, according to people familiar with the matter who asked not to comment because some details of the agreement are confidential.
“Within the NBA”
TNT's popular studio show “Inside the NBA” will be licensed to Disney's ESPN and ABC for major NBA regular season and playoff games, including the Finals. ESPN's current NBA studio show, “Countdown,” will continue for other ESPN regular-season games.
Charles Barkley on Inside the NBA
Source: NBA on TNT
TNT Sports will continue to produce “Inside the NBA” with Ernie Johnson Jr., Charles Barkley, Kenny Smith and Shaquille O’Neal. The four hosts will remain with the show for the duration of their contracts and may continue to develop new content for Warner Bros. Discovery's cable and streaming platforms, including programs such as an “Inside Sports” show currently in development for next season company in development. ESPN includes protections in the deal that would allow the company to stop licensing the show if key hosts depart, according to two people familiar with the deal.
It's unclear whether “Inside the NBA” will feature TNT or ESPN branding when the show airs on Disney's platforms next year, people familiar with the matter say. While TNT Sports has full editorial control of the show, ESPN talent may work with the hosts, the people said.
“The opportunity to continue the iconic, Emmy Award-winning 'Inside the NBA' is a huge win for basketball fans everywhere,” NBA Commissioner Adam Silver said in a statement. “We look forward to expanding our long-standing partnership with TNT Sports and working together to promote NBA content on key WBD and NBA platforms.”
Disney and Warner Bros. Discovery have formed several partnerships in the past year, including on a streaming package that combines WBD's Max service with Disney+ and Disney's Hulu, as well as a sports-focused joint venture called Venu, which is currently due due to antitrust concerns.
As a side part of the agreement, which does not involve the NBA, ESPN will allow TNT to televise 13 Big 12 football games and 15 men's basketball games per season beginning in 2025. The deal gives the Big 12 more linear TV exposure through TNT, as most games would have been streamed exclusively on ESPN+, according to people familiar with the matter.
ESPN entered into a similar sublicensing deal with Warner Bros. Discovery earlier this year for the first-round and quarterfinal games of the College Football Playoff.
Consolation prize
The deal allows Warner Bros. Discovery Chief Executive Officer David Zaslav to walk away with something after failing to reach an agreement during the exclusive negotiating window with the league earlier this year.
“Together, these agreements ensure fans can continue to enjoy TNT's 'Inside the NBA' and create tremendous value across our portfolio as we accelerate the growth of TNT Sports, Bleacher Report, House of Highlights and our global sports business.” Zaslav said in a statement.
Silver told CNBC last month that the league “absolutely” could have reached an agreement with Warner Bros. Discovery, but leadership from both sides never saw eye to eye.
“It hasn’t been a long-standing relationship with the people currently running Warner Brothers Discovery,” Silver said. “Ideally, people in these types of partnerships don’t pull out the contract and say page eight, paragraph three. They say that you understand the spirit of what you wanted to achieve and that you are ready to adapt according to the changes. So when you look at the contract, it is a sign that the partnership is not going well.”
Disclosure: Comcast's NBCUniversal is the parent company of CNBC and co-owner of Hulu.
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