Jun 07, 2024

NBA ‘closes in on’ US$76bn ESPN, NBC and Amazon rights deals

The National Basketball Association (NBA) is reportedly close to finalizing media rights deals with ESPN, NBC, and Amazon, collectively worth $76 billion over 11 years, according to The Wall Street Journal (WSJ). Under the reported agreements, Disney-owned ESPN will pay the NBA an average of $2.6 billion annually, the highest sum among the league's prospective […] 
 Jun 07, 2024

NBA ‘closes in on’ US$76bn ESPN, NBC and Amazon rights deals

The National Basketball Association (NBA) is reportedly close to finalizing media rights deals with ESPN, NBC, and Amazon, collectively worth $76 billion over 11 years, according to The Wall Street Journal (WSJ).

Under the reported agreements, Disney-owned ESPN will pay the NBA an average of $2.6 billion annually, the highest sum among the league's prospective media partners. This marks a significant increase from ESPN's current $1.5 billion arrangement. NBC is expected to pay $2.5 billion per season for 100 games, with half airing exclusively on its Peacock streaming service. Amazon is set to pay $1.8 billion annually for various game broadcasts, including regular season, playoff games, and tournaments.

The deals, anticipated to commence from the 2025/26 season, will also encompass the rights to Women’s National Basketball Association (WNBA) telecasts. A formal announcement is pending, awaiting approval from team owners.

Although ESPN, NBC, and Amazon are poised to finalize their agreements, Warner Bros Discovery (WBD), the league's current broadcast partner, retains the right to match a rival package. However, this contractual clause is ambiguous, and the league may explore additional options for WBD.

Live sports continue to be highly desirable for broadcasters, particularly as streaming platforms seek to bolster their offerings. While NBA viewership lags behind the NFL, its younger audience and numerous games make it an appealing property. NBC, despite internal divisions over the benefits of acquiring NBA games, prioritizes sports for its Peacock service. ESPN aims to retain NBA rights as it prepares to launch a direct-to-consumer (DTC) service, while Amazon views the league as a means to engage younger fans.

Meanwhile, WBD faces challenges, risking revenue loss from cable distributors less willing to pay high fees for TNT. Notably, basketball pundit Charles Barkley criticized WBD's negotiation approach, highlighting potential shortcomings in the network's strategy.

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