NBA Secures Media Contracts Worth $77 Billion

7/25/2024, 9:11 AM

League concludes 11-year contracts with media partners – rejects final offer from Warner Bros. Discovery.

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Eulerpool News Jul 25, 2024, 9:11 AM

The National Basketball Association (NBA) has finalized historic media rights deals worth a total of $77 billion with Disney’s ESPN, Amazon.com, and Comcast’s NBCUniversal, rejecting a last-minute bid from the current rights holder Warner Bros. Discovery.

The new 11-year contracts that take effect after the 2024-2025 season will more than double the NBA's annual revenue.

Disney has agreed to pay an average fee of $2.6 billion per year to continue broadcasting NBA games on ESPN and ABC. This is an increase from the current contract's $1.5 billion per year. NBCUniversal has agreed to pay $2.5 billion per year to show games on NBC and its streaming service Peacock, while Amazon Prime Video has offered $1.9 billion per year for a streaming package.

The league stated it had rejected a proposal from Warner to continue showing basketball games on its TNT network, setting the stage for a possible legal dispute. TNT had exercised a clause in its contract that gave it the right to top a competing offer. The Wall Street Journal reported that TNT is trying to top Amazon's offer.

The latest offer from Warner Bros. Discovery did not meet the terms of the offer from Amazon Prime Video, and therefore we have reached a long-term agreement with Amazon," explained the league in a statement.

The high price of the NBA deal underscores the importance of sports rights for media companies, as they help maintain the viewership necessary to sustain their traditional TV business while simultaneously preparing for a future dominated by streaming.

The deals, each containing a significant streaming component, reflect a profound shift in the way consumers watch sports. Amazon's entry points to the growing power of technology companies in the sports domain.

The media rights agreements will maximize the reach and accessibility of NBA games for fans in the United States and worldwide," said NBA Commissioner Adam Silver in a statement.

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