Warner Bros. Discovery has reached a new settlement with the NBA, ensuring that the media company will continue to have professional basketball content in its lineup. While Warner Bros. Discovery has given up U.S. rights to traditional TV games to competitors, they have secured rights to show NBA content on their Bleacher Report and House of Highlights platforms, as well as distribute games overseas in various regions excluding Brazil and Mexico. This new agreement, spanning 11 years, marks the end of a legal dispute between Warner Bros. Discovery and the NBA that arose when the league excluded Warner from its upcoming TV deal with Disney’s ESPN, Amazon, and NBCUniversal.
In a separate deal, Warner Bros. Discovery will make their flagship show “Inside the NBA” available to Disney’s ESPN during key moments of the NBA season. Additionally, Warner Bros. Discovery will have rights to show Big 12 football and men’s basketball. The popular “Inside the NBA” show, featuring Charles Barkley and Shaquille O’Neal, will continue to be produced by Warner Bros. Discovery, who are also exploring the possibility of expanding the show to cover a wider range of sports.
The deal comes as a relief for both parties, as prolonged legal battles and unwanted scrutiny loomed without a resolution. NBA executives were confident in their chances of prevailing in court, but the process could have dragged on well into the next season. For Warner Bros. Discovery, losing NBA TV games next season would have further impacted their declining cable business, which was already facing challenges. The company recently reported a significant write-down of its TV assets, citing business challenges and the anticipated loss of their NBA broadcasting agreement.
Despite the setbacks, Warner Bros. Discovery will continue to manage NBA TV and NBA’s digital outlets under the new agreement. The partnership between the NBA and Warner, spanning over three decades, has been integral to both parties. NBA games have been a major revenue driver for Warner, with NBA broadcasts accounting for the top ratings on TNT in 2023. The absence of NBA games would have significant implications for TNT, potentially leading to demands for reduced distribution fees from cable and satellite providers.
Looking ahead, executives are optimistic about the potential profitability of the new pact, with projections of up to $100 million in profit over the first five years of the agreement. The inclusion of international games and digital highlights in the deal is expected to attract a global audience and drive revenue for Warner Bros. Discovery. Overall, the settlement with the NBA secures the future of professional basketball content for Warner Bros. Discovery, ensuring a continued presence in the competitive sports media landscape.
