ESPN and Turner no longer have exclusive rights to negotiate with the NBA for its next media rights deal. That ended on Monday, April 22.
It's been reported that the two sides are still expected to strike a deal with the league for its next package, but that a third or even fourth player may be included. But a new report by Front Office Sports indicates that Disney (DIS) , who carry ABC/ESPN, and Warner Bros. Discovery (WBD) , which handles Turner Sports, have an option that could ensure that they keep their hold of the NBA.
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The two sides reportedly have "matching provisions" which will allow to counter any moves made by other bidders before pen is put to paper. This is reportedly both for both streaming and linear rights of the NBA.
This is an essential development as its been reported that there are several other bidders looking to snag a piece of the NBA's media rights pie including Amazon (AMZN) with Prime Video, Comcast's (CMCSA) NBC/Peacock, as well as Netflix (NFLX) , Apple (APPL) , and Google (GOOG) through YouTube TV.
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The expectation is that the league is going to significantly raise its media rights deal, — which is currently worth around $2.7 billion annually between Disney and WBD — and that the two media giants are willing to pay up.
But with streaming services in the picture, and with the NBA offering several new tentpole events like its In-Season Tournament and Play-In Tournament, there is an opportunity to expand its package to other broadcasters with potentially deeper pockets and more established success in the streaming game — like Prime Video and Peacock.
However, the ability for Disney and WBD to match these deals gives them greater leverage to ensure that they're not left out of the deal entirely. ESPN and Turner already have money invested in the people and infrastructure around these leagues — Turner is paying Charles Barkley for the next 10 years to host its NBA studio show — so it would behoove them to continue airing the actual games on their networks.
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