The 'NBA on TNT' is Dead. 'Inside the NBA' is Saved.
Joe Flint
Well, it's not exactly a win/win, but more like a win/not-total-loss for the NBA and Warner Bros Discovery, respectively. This was always going to be settled – 'sorry, I won't let you break-up with me' never works, of course. The question was if TNT would get access to any NBA games as a result. The answer is 'no':
The accord gives Warner Bros. Discovery the ability to develop new shows with NBA content in the U.S. and abroad, and international NBA rights in parts of Northern Europe and Latin America excluding Mexico and Brazil.
The deal is expected to be announced early next week.
While Warner Bros. Discovery is losing rights to regular and postseason games for its TNT network after this season, the settlement will give it rights to a significant amount of NBA content domestically and abroad, the people said, and the league will avoid a continued legal battle in court.
But again, that "content" is not the games themselves in the US, it sounds like it will mainly be access to highlights/clips for Bleacher Report and House of Highlights. The latter in particular seems key here as it's how a lot of young people digest the NBA content on social media. I'm reminded of how ESPN would have to strike deals to ensure they could show all the various leagues clips on SportsCenter back in the day...
The company will continue to partner on the NBA’s digital operations for the next several years. That portion of the deal will provide Warner Bros. Discovery with about $350 million in revenue over the length of the agreement, for services, promotion, programming and marketing, people familiar with the terms said.
In other words, the NBA is paying WBD to help this go away. As was always going to be the case. And as such, WBD can undoubtedly spin this to shareholders as "saving" something like $2B a year by not "overpaying" for the rights and still getting access to content while actually getting paid for it.1
Far more interesting:
Separately, Warner Bros. Discovery struck a deal with Disney to license the TNT show “Inside the NBA” to ESPN and ABC starting next season, according to the people familiar with the matter. The show, which features the former players Charles Barkley and Shaquille O’Neal, has an enthusiastic and large following. The show will air throughout the course of the season.
Yes, ESPN/ABC will air "Inside the NBA" starting next year (when TNT loses their games) even though it will still be produced by TNT. It will be interesting how it's branded – I'm guessing still as "Inside the NBA by TNT" to start at least, and perhaps it morphs into "by Warner Bros Discovery" or the like over time ("presented by Max"?).
Disney was already throwing WBD a bone with some college football games, presumably to help out their Venu partner (who may end up not being their Venu partner after all as Venu may not be a thing after all). This is a much bigger bone. But unlike the NBA deal itself, this feels like a win/win. Disney gets perhaps the key show to air alongside their games and WBD gets to keep producing the show and again, branding it and gets paid for it.2
But at the end of the day, the real key here was if WBD could save TNT's carriage fees. And that explains the other element that almost reads like an aside here:
In addition, these people said, ESPN will sublicense Big 12 conference college football and basketball games to Warner Bros. Discovery that it can air on TNT, as well as on its Max streaming service.
Again, Disney already threw WBD some college football content, which is second only to NFL content in terms of viewership. While the Big 12 isn't the SEC or Big Ten, this should help as well. The 'NBA on TNT' may be dead, but WBD may have just done enough to salvage TNT itself and placate shareholders.
And, most importantly, Charles Barkley.
One more thing: the other big winner? Amazon. It outplayed WBD to get NBA rights and can now fully build out their sports offering.
1 Worth noting that this $350M is spread over the entire 11-year window of the contracts with the NBA -- i.e. it's not like they're getting paid $350M/yr.
2 Also, if WBD ends up as a part of the consolidation wave that David Zaslav is hoping for with the incoming Trump administration, presumably Disney will still now have 'Inside the NBA' locked up. Disney, it sounds like, won't be buying WBD. But Apple or someone else could!