The NBA's $76 BILLION breakup

The NBA is divorcing WBD, TNT posted a dramatic breakup tweet, and Amazon Prime Video is the other woman.

Sheesh. Talk about messy!

You’re probably thinking: what the hell do all these acronyms mean and why should I care?

Valid. This is about basketball, and a whooole lot of money.

On Wednesday, the NBA unveiled a new media rights deal for 2025, making a shock decision to not accept Warner Bros. Discovery’s 1.8B per year offer to continue its relationship with the league.

Instead, the NBA has signed an 11-year deal with Disney, NBC and Amazon Prime Video. The media right deals will bring the league about $76B over those 11 years.

Adam Silver, NBA Commissioner (and one of the most powerful sports executives in the world) spoke of the news in a written statement: 'Our new global media agreements with Disney, NBC Universal and Amazon will maximise the reach and accessibility of NBA games for fans in the United States and around the world.'

'These partners will distribute our content across a wide range of platforms and help transform the fan experience over the next decade.'

And TNT, who has aired the games since 1988, is pissed.

Warner Bros. Discovery, TNT’s parent company, initially tried to match Amazon’s offer. But the league rejected that offer, stating their primary focus is to make their games accessible to the widest audience possible. And, in their minds, their new arrangement is going to help them do that.

Turner Sports strongly disagreed with the move. In fact, they believe the league has misinterpreted their contractual rights. They've even threatened to sue.

TNT’s current nine-year contract includes backend rights. So from TNT’s point of view, this means they can simply say they want to keep the NBA deal, and it will be theirs.

'We have matched the Amazon offer, as we have a contractual right to do, and do not believe the NBA can reject it,' the company tweeted (X’ed? – I don’t know), claiming to take 'appropriate action.'

A decade ago, when the NBA and TNT made their current agreements, streaming was fairly new, and not part of the deal. But now, their contract is no longer clear-cut.

The NBA’s decision to move forward with Amazon tells us two things.

Firstly, cable is archaic. 

It stunts the potential reach of the game’s viewership, and fans simply don’t like it. 'You have no idea how frustrating it is to watch games legally as a fan,' one X user wrote. 'Having NBA games on Amazon Prime makes (it) more accessible for fans.'

More and more, viewers are cutting the cable chord and streaming their favourite sports instead. This is because traditional cable packages bundle dozens of channels that rarely get watched.

Streaming allows for targeted subscriptions, meaning you only pay for the content you need. It’s cost-effective and more accessible.

It’s simply the better choice.

And if you haven’t dabbled in advertising through streaming services yet, you should seriously consider whether it’s a good option for your brand.

Secondly, Amazon is moving into the sports world.

The tech giant already has a steadily growing sports catalogue. This includes the NFL’s Thursday Night Football and live action from several other leagues and teams. But the NBA is a huge addition. The sport was recently dubbed 'America's most globally relevant sports property.' So one can imagine it will draw unprecedented numbers to the platform.

As more people get rid of cable, sports leagues are increasingly engaging with tech companies. Live sports ratings are currently experiencing a major growth spurt, resulting in a mutually beneficial gold rush.

By 2025, it’s estimated that 118 million U.S. viewers will stream their favourite sport. Streaming services’ spend on sports rights globally is projected to reach $8.5B this year alone, a 64% increase from 2022.

Sports viewership is undergoing some giant and rapid changes, with streaming leading the way.

It makes you wonder, how will ongoing technological progress impact other industries? I’m sure we can look forward to some innovative developments in the future.

-Sophie, Writer