Over the course of just about two weeks, the reporting surrounding the NBA’s negotiations for a new TV deal has been a rollercoaster – and left me alternately supremely confused about the league’s thinking, and that of their potential partners, and worried about what will happen to the league’s longest-running partner.
Unlike the last round of NBA media rights deals, when ESPN and TNT renewed their agreements during their exclusive negotiating window, the league and their partners let the exclusive window lapse this time around – but shortly after the window expired, John Ourand reported in Puck that ESPN had “essentially come to terms” with the NBA on the league’s “A” package, which included continuing to be the exclusive home of the NBA Finals. The next day, Ourand’s former podcast partner Andrew Marchand reported in the Athletic that Amazon had reached a “framework for an agreement” that would give them a package of games as well, giving the NBA games exclusive to a streaming provider for the first time, and also that ESPN would be reducing its package of games from 100 to 80 “in one arrangement” – a surprisingly small reduction that wouldn’t be enough to remove a night of NBA games from ESPN’s schedule for an entire season.
Both of them reported that NBCUniversal remained in the running to fight with TNT over the remaining package, but the combination of the two reports seemed to suggest that NBC was a decided underdog. If ABC was going to retain all of the NBA Finals, that would remove a significant point of interest for any Comcast bid that contained a significant broadcast presence. Any continued presence of Comcast in the bidding would seem to be one that placed a high priority on games on its Peacock streaming service, with any NBC games as an added bonus along the lines of the two games NBC simulcasted with Peacock as part of the service’s “Sunday Leadoff” baseball package over the last two seasons. But now the NBA had reached a deal with Amazon, so its desire for a streaming component to its deals had already been met, and it would be a decided risk to sign a deal for games on another streaming service, one significantly smaller and more unproven than Prime Video, while abandoning a partner of such long vintage in TNT that they’d been airing games since before NBC’s previous stint with the league, one that had long attracted rave reviews for the quality of its coverage, both in-game and with its acclaimed “Inside the NBA” studio crew. Coupled with TNT’s right to match any competing offer, the chances of NBC making its triumphant return to the NBA seemed to have drastically diminished.
ESPN has a bit of a habit of rushing in early in TV negotiations and locking down enough rights to decidedly neuter the desirability of a package for a second partner and ensuring their pre-eminence within the sport. In 2012, it locked up all of their then-three Major League Baseball packages, effectively shutting Fox and NBC out of the packages that might have best boosted their respective sports networks, reducing Fox to giving FS1 Saturday games on crowded sports days with slates not worth airing on the broadcast network and a handful of weeknight games until the postseason. Then there’s ESPN’s current deal with the NHL, where ESPN picked up so much in the way of desirable rights, including ESPN’s choice of conference finals every year (in a league with a nearly two-in-three chance of at least one Canadian team reaching that round), that even with the Winter Classic and three out of seven Stanley Cup Finals still on the table as part of the B package, it was left too undesirable for anyone but TNT to take despite their lack of a broadcast network and existing commitment to AEW on Wednesday nights.
ESPN may well have seen securing all the Finals the same way. Ourand would later suggest that the NBA, famous for signing what’s widely considered the first cable-first deal for a major league when it left NBC for ESPN in 2002, now wanted the reach of a broadcast network for its “B” package. At his former employer, SportsBusiness Journal, Tom Friend reported that the NBA wanted to have ABC alternate the Finals with another partner, which ESPN fought tooth and nail until finally agreeing to pay $2.6 billion for a package with all the NBA Finals. ESPN might well have thought that by taking all the Finals, before most contenders other than TNT could even come to the table, they’d defang the one big attraction any package would have to broadcast networks and something that most would consider table stakes for any broadcast-centric package – ensuring that other than giving a handful of games to a streamer, the NBA wouldn’t have much choice but to perpetuate the status quo, helping to keep the price of all three packages down, and wouldn’t have any options other than ABC to provide that increased reach via broadcast television. That may help explain why TNT allowed their exclusive negotiating window to lapse without a deal, confident they could match any offer any other company could bring to the table dollar-for-dollar.
But both companies may have underestimated Comcast’s determination – and the result may well end up being the death warrant for all of Warner Bros. Discovery.