TNT To Match NBA Rights To Keep Games on Network, Could Head for Legal Battle
TNT Sports announced on Monday that it intends to match an NBA rights deal to keep the league on the network.
"We’re proud of how we have delivered for basketball fans by providing best-in-class coverage throughout our four-decade partnership with the NBA. In an effort to continue our long-standing partnership, during both exclusive and non-exclusive negotiation periods, we acted in good faith to present strong bids that were fair to both parties," TNT’s statement said.
"Regrettably, the league notified us of its intention to accept other offers for the games in our current rights package, leaving us to proceed under the matching rights provision, which is an integral part of our current agreement and the rights we have paid for under it."
Neither TNT nor parent company Warner Bros. Discovery specified which network's package it plans to match. However, it has been widely reported that the network would target Amazon Prime Video.
Earlier this month, the NBA reached rights agreements with ESPN, Amazon, and NBC to carry games for 11 seasons for $76 billion in total.
Amazon agreed to the "C" package, which includes games on Friday nights and Saturdays and then on Thursdays after the final Thursday Night Football game of the year. Amazon and NBC planned to rotate a conference final every other year.
The match fee for the "C" package is $1.8 billion per year. Respectively, ESPN and NBC will pay $2.6 billion and $2.5 billion annually.
But, wait. It's not that easy.
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CLEVELAND, OH - OCTOBER 25: A close up shot of NBA TNT Analyst, Charles Barkley talking on set before the New York Knicks game against the Cleveland Cavaliers on October 25, 2016 at Quicken Loans Arena in Cleveland, Ohio. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this Photograph, user is consenting to the terms and conditions of the Getty Images License Agreement. Mandatory Copyright Notice: Copyright 2016 NBAE (Photo by David Dow/NBAE via Getty Images)
The NBA could contest WBD's interpretation of their matching clause, as CNBC first suggested. The league may argue that Amazon's package is newly created and thus not subjected to a "matching" provision.
Sources within the industry believe the NBA would rather leave WBD behind and move forward with Amazon as a new partner. And for good reason.
TNT is a cable network. Cable is in rapid decline. Amazon provides the NBA with a streaming component that would greatly improve the league's growth potential over the next decade.
While WNBA has Max, Amazon’s Prime Video has about twice as many global subscribers.
The possibility of the NBA working with four partners – TNT, Amazon, ESPN, and NBC – remains on the table, though it would require the league to redistribute packages, games, and nights of the week.
But it can be done. Heck, the NFL has about 10 broadcast partners.