NBC Is Looking To Get Back In NBA Business, Poach Rights From TNT

The NBA's current broadcast agreements with ESPN/ABC and TNT end after next season. The NBA has deals in place with ESPN/ABC and Amazon for the next decade.

And, according to the Wall Street Journal, Comcast’s NBCUniversal is prepared to pay an average of about $2.5 billion a year to edge out TNT for the rights to a third NBA package. 

"The package NBCUniversal is bidding on would include playoff and regular season games that would appear on the NBC network, as well as its Peacock streaming service. NBC has discussed carrying two prime-time games a week, something Warner can’t offer because it doesn’t own a broadcast network," says the report.

NBC's interest does not signal the end for the NBA on TNT.  TNT has matching rights.

However, TNT currently pays the NBA an annual fee of $1.2 billion. TNT parent company Warner Bros. Discovery (WBD) would have to more than double its investment to retain the NBA.

The problem is that WBD is in costing mode after merging WarnerMedia and Disovory Inc. into one debt-filled media entity. 

"Warner Chief Executive David Zaslav has emphasized cost savings and had indicated on calls with analysts that while securing NBA rights is important, the company would be disciplined in its approach to a new deal," added the WSJ.

Los Angeles Lakers All-Star LeBron James in action against the Denver Nuggets in Game 3 of the 1st round for the 2024 NBA playoffs at Crypto.com Arena. (Gary A. Vasquez-USA TODAY Sports)

There's also an argument that the NBA is not worth its increased asking price. The league has lost more than 50 percent of its audience since 2012. Overpaying for a product in obvious decline isn't, on the surface, a wise calculation.

That said, the NBA is still the most-watched weekly television show on TNT. Without the NBA, cable companies would presumably lower the cable fees they are willing to pay WBD to carry the network. 

Secondly, WBD recently agreed in principle to form an upcoming sports streaming venture with Fox and Disney. WBD could not hold up its end of the bargain without the NBA, its broadcasts of March Madness and the NHL notwithstanding. 

The NBA on TNT is an institution. There's an entire generation of viewers who do not know the NBA without TNT, and its critically-acclaimed "Inside the NBA" pregame show. 

The NBA is more valuable to WBD/TNT than other potential broadcast partners. 

But it might not matter. NBC has a clear financial edge over WBD, with a market cap advantage of $155 billion to $18 billion. Suffice it to say a bidding war with NBC would not favor the NBA remaining on TNT.

"The league’s negotiations with its streaming and TV partners are fluid, and the parties are still haggling over who gets rights to air the most high-profile games and series," concludes the report.

NBC last carried the NBA in 2002. You may recall this signature theme: