NBA Finalizes Media Rights with Disney, NBC, and Amazon Amid Potential Legal Battle with Warner Bros. Discovery

NEW YORK — The NBA is finalizing written contracts with Disney, NBC, and Amazon, entering the last stage of media rights negotiations that could lead to legal action from Warner Bros. Discovery (WBD). According to industry sources, ESPN's deal is expected to pay $2.8 billion annually for the "A" package, which includes the NBA Finals, a conference final, weekly primetime games, the WNBA, and potentially shared international rights. NBC's "B" package is projected to be worth between $2.5 billion and $2.6 billion annually, featuring "Basketball Night in America" or "Sunday Night Basketball" following the NFL season, two primetime windows per week, conference semifinals, and a conference final. Amazon's agreement, valued between $1.8 billion and $2 billion, will likely cover the Emirates In-Season Tournament, the SoFi Play-In Tournament, first-round playoff games, the WNBA, and international rights.

The final adjustments to these deals are anticipated in the coming days, after which each network will seek approval from their leadership groups. The NBA plans to present NBC's contract to WBD to see if WBD CEO David Zaslav can match it in total value. With WBD $40 billion in debt and lacking NBC's over-the-air infrastructure, sources believe WBD would need to exceed $2.6 billion to match NBC's bid, potentially making it impossible for WBD to compete. Zaslav may then face three choices: pass on the NBA, significantly overpay for the "B" package, or take the NBA to court over the definition of a match.

If WBD contests the NBA's interpretation of a matching bid, the league will argue that a match involves more than dollar-for-dollar terms, including ad revenue and broadcast windows. Legal preparations are already underway for a possible lawsuit.

The breakdown in negotiations traces back to the exclusive negotiating window from mid-March to April 22, during which Disney firmly sought to retain the "A" package, effectively doubling its previous rights fee from $1.4 billion to $2.8 billion. Conversely, Zaslav anticipated retaining the "B" package for between $1.8 billion and $2.1 billion, refusing to double the fee to $2.4 billion. This impasse led to the open market bidding, attracting NBC. Should WBD lose the NBA rights, the 2024-25 season will mark the final year under the current deal.