Comcast’s NBCUniversal is closing in on securing the third NBA package and likely unveil a “Basketball Night in America’’ telecast with its annual bid of $2.5 billion per year, sources tell Sports Business Journal.
Sources say Warner Bros. Discovery, parent company of TNT, would have to increase its bid to as much as $2.8 billion per season to retain rights unless they attempt to settle the matter via lawsuit.
WBD exited its exclusive negotiating window with the NBA with the expectation they could match any bid from a rival company on a dollar-for-dollar basis.
Sources reiterated Wednesday that the NBA believes a dollar-for-dollar match is not enough because NBC is an over-the-air network with multiple broadcast windows and an RSN infrastructure that WBD cannot replicate.
“NBC has made their bid, and they're not budging,’’ a media industry source said. “So it's over, right? And Warner Bros. is saying, ‘We'll match it,’ and (Commissioner Adam Silver) is probably saying: ‘It's not matched.’ ’’
Sources say Adam Silver is trying to figure out a way to sever the relationship with TNT in a "gentle way."
“There's no mystery to this," the source said. “It's pretty blatant what's happening. David Zaslav realizes he has to have this and doesn't want to pay more than $2.5B. And Adam's saying, honestly, it's not matched at $2.5. And [Zaslav] goes, ‘Yes, it is,’ and they're going back and forth.’ And so that's where we are. How do you let [WBD] down? Is there a way? Or does Zaslav come up with more money? Because then it doesn't have to be matching because David's paid more.
“And that's where we are. Adam's trying to be nice to David right now until David backs off his dogs. He’s trying to help David save face.’’
NBC’s package is expected to include Sunday Night games following the NFL season, while perhaps taking over ESPN’s Friday night slate and TNT’s second-round playoff and conference final package. Amazon would likely have one weekday night (Tuesday or Thursday) and Saturday nights, as well as the Play-in tournament, the In-Season Tournament, first-round playoff games and likely some international rights.
ESPN will continue to be the exclusive home of The Finals.
“ESPN did not want to alternate the finals, which I think Adam wanted to do,’’ a source said. “Adam wanted to make a package for NBC and alternate the finals with ESPN. ESPN fought it, fought, fought it, and finally said fine, ‘We'll pay the $2.6B, but no alternating the finals.’ And WB thought the league would never get that [$2.5] price from NBC. They said, ‘Sure, go shopping.’ They shopped it, they got the price. And now David Zaslav goes, ‘We’re screwed.’’’
