Warner Bros. Discovery has been interested in other areas of sports, despite blanket media coverage from investors wondering whether it would retain the rights to show NBA games.
Warner Bros. Discovery has struck a deal with rival ESPN that will sublicense a small number of its games for five years starting later this year, according to two people familiar with the matter. TNT will be the leading media network, broadcasting two first-round matches this year and next, and will add two more quarterfinals starting in 2026.
The deal surfaces as Warner Bros. Discovery is engaged in high-profile discussions with the NBA about renewing its longtime media rights. Warner and the NBA have been allies since 1989, and the relationship has grown so strong that Warner helps run the NBA's cable network and manages some of its digital properties.
However, the NBA's media deals with ESPN and Warner Bros. Discovery expire after next season, and the league reportedly already has a framework for deals in place with Amazon Prime Video and NBCUniversal, as well as Disney-backed outlets. situation. Warner Bros. Discovery believes it has the right to try to match any deal proposed by any competitor.
Warner and the basketball league continue to discuss continuing their current relationship. “Negotiations are still ongoing. We have a great partnership with the NBA.” Warner's chief financial officer, Gunnar Wiedenfels, said in a speech to investors Wednesday. “We value our products and are very hopeful that we can find a solution that is mutually beneficial to both parties.”
Warner's efforts to secure college football games were “independent and parallel” to NBA talks, according to a person familiar with the matter. The company, like many of its contemporary media companies, has been eager to build its sports portfolio because live events are one of the few formats that consistently attract the large concurrent audiences that advertisers and distributors crave. Many of these viewers stream scripted comedies, dramas, and movies at a time of their choosing. Warner has long provided games from the NBA and MLB and shares rights to broadcast the NCAA March Madness men's basketball tournament with CBS. It recently signed new contracts with the NHL and NASCAR.
Losing an NBA game means Warner Bros. It would be seen as a serious obstacle to Discovery's business. The company's TNT cable network schedule is packed with NBA broadcasts, and its “Inside the NBA” studio program, featuring Charles Barkley, Shaquille O'Neal, Ernie Johnson and others, is considered one of the best of all programming. of American sports.
“We have spent a lot of time preparing for this negotiation and have put together a strategy for a variety of potential outcomes,” Warner CEO David Zaslav said during a recent earnings call with investors.
The official said that discussions with ESPN began two to three months ago.
The agreement will bring college football to one of Warner's cable networks for the first time since it ended in 2006. During that time, Warner's TBS aired Big 12 and Pac-10 games sublicensed from Fox. Previously, Warner made TBS the first cable network to broadcast live college football when it began operating games in 1982. TBS discontinued the game after 10 years.
The new deal could strengthen the businesses of both Warner and Disney. ESPN will extend some of the money it must spend as part of its six-year contract to broadcast the $7.8 billion CFP through the 2031-2032 season. Having Warner's TNT Sports in the mix would add CFP-related promotions and potentially draw larger crowds to the event. ESPN will produce all the games, but TNT Sports will be able to create programming around CFP games and make its own decisions about some aspects of talent and presentation, according to sources familiar with the matter. But sources familiar with the matter say the ESPN broadcaster will walk viewers through the game itself.
The two companies are also partners in the upcoming streaming joint venture Venu, and the deal will ensure CFP games will remain available on those stores. Warner and Disney are co-owners of Venu along with Fox Corp. Warner Bros. Discovery will likely also stream new playoff games on its Max service.