Warner Bros. Discovery's Discovery Channel proposes a matching bid to compete with Amazon for NBA broadcasting rights
Warner Bros. Discovery Channel, leveraging the terms in the contract with the NBA, has proposed to compete with Amazon for the NBA broadcasting rights. The proposal has been received by the NBA and is currently under review. The new partner will sign a new agreement worth $76 billion for 11 years. Warner Bros. Discovery Channel has been broadcasting NBA games for many years and its program "Inside the NBA" is very popular. If the NBA questions the matching offer, it may lead to controversy. The new contract will take effect in the fall of 2025
According to the information from Zhitong Finance and Economics APP, Warner Bros. Discovery Channel (WBD.US) is using a clause in its expiring contract with the NBA to challenge Amazon (AMZN.US) for the NBA broadcasting rights.
In a statement, Warner Bros. Discovery Channel said, "Unfortunately, the league has informed us that it intends to accept other game bids in our current rights package, allowing us to continue to match the rights terms as part of our current agreement and the rights we pay for under the agreement."
The company stated that it has submitted documents indicating its intentions to the league on Monday.
A spokesperson for the NBA confirmed that the league has received the proposal and is reviewing it.
It is understood that the NBA is about to sign a new 11-year agreement worth $76 billion with ESPN, Comcast (CMCSA.US) owned NBC, and Amazon as its new partners. Amazon has agreed to pay about $1.8 billion annually.
Warner Bros. Discovery Channel, which owns TNT and TBS networks, has been broadcasting the NBA for decades. "Inside the NBA," hosted by basketball superstar Charles Barkley, is one of its most popular programs.
After exclusive negotiations with current partners Warner Bros. Discovery Channel and ESPN under Disney (DIS.US) for some time, the league has attracted interest from new bidders.
Warner Bros. Discovery Channel plans to broadcast games on TNT and its Max streaming service, similar to its current package. According to a source, the company, which has a debt of over $40 billion, has obtained a letter of credit to support its bid.
If the NBA league decides to challenge the matching bid, the league may argue that Amazon's package does not align with Warner Bros. Discovery Channel's expiring contract.
The new contract will take effect in the fall of 2025