New NBA Media Deal: 11 years, $77B with Disney (ABC/ESPN), Comcast (NBC/Peacock), and Amazon. ESPN to license Inside the NBA

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And what happens when Amazon just ups their offer?

PEEP MY POST FROM YESTERDAY....


WE DONT KNOW THE TERMS OF THE MATCH CLAUSE.

WHEN A NBA TEAM OFFERS A RFA A DEAL
THEY CANT COME BACK AND OFFER MORE
AFTER OG TEAM MATCHES...

ESPN/WB MAY HAVE THE SAME ARRANGEMENT
BECAUSE I FEEL NBC WOULD HAVE RAISED
THEIR 2.5 B TO 3 B FOR THE MAIN PACKAGE
INSTEAD OF PAYING MAIN PACKAGE PRICE
FOR THE SECONDARY PACKAGE.


:devil:
:evil:

 

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PEEP MY POST FROM YESTERDAY....


So as an attorney, I can tell you that a company will almost never set a price limit when it comes to a contract like this. The CBA isn’t a good comparison because that is a built in cost control mechanism and employee control mechanism built into NBA governance.

WB had the exclusive negotiating window, which expired. So while they have the right to match or offer a proposal, there’s nothing that says the NBA cannot accept counters of greater value. In fact, the NBA is telling you right now that even if WB meets NBC dollar for dollar, they value the overall economics and structure of NBC/Comcast more. Translation: we have the right to take the better deal. Why wouldn’t the NBA look at an Amazon deal that offers 500 million more and make the same argument?
 

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With NBA executives sequestered in almost around-the-clock negotiations with a fistful of networks — from old-school NBC to new-school Amazon to out-of-school Warner Bros. Discovery — the end game has begun to cross most people’s minds at the league’s 5th Avenue office.

There are going to be winners, albeit at the heavy price of roughly $2.6 billion annually from ESPN and about $1.8B annually from Amazon. But the prospect of saying goodbye to WBD’s Turner, after a 35-year run that turned Ernie Johnson into the league’s favorite uncle and Charles Barkley into a pseudo-Howard Cosell, is real and becoming more inevitable by the day.

Sources continue to insist Comcast’s NBCUniversal will capture the third NBA package — and likely unveil a “Basketball Night in America’’ telecast — with its annual bid of $2.5B. Although details are still being massaged with nothing finalized, those sources believe there is little WBD CEO David Zaslav can do to overtake NBC unless he perhaps coughs up as much as $2.8B or more to overpay for the package. Or, according to the sources, unless he takes the league to court.

Reports surfaced last month that incumbent WBD exited its exclusive negotiating window with the league believing it could match any bid from NBC or the like, dollar for dollar. However, sources reiterated Wednesday that the NBA believes a dollar-for-dollar match is not enough, that NBC is an over-the-air network with multiple broadcast windows and an RSN infrastructure that WBD cannot replicate.

“NBC has made their bid, and they're not budging,’’ a media industry source said. “So it's over, right? And Warner Bros. is saying, ‘We'll match it,’ and (Commissioner Adam Silver) is probably saying: ‘It's not matched.’ ’’

That gray area of what a “match’’ is could turn into a lawsuit against the league, or at least have lawyers weighing in, according to sources. In the meantime, those sources said Silver is contemplating how to cut Turner loose and simply wants to do so in a gentle way.

“There's no mystery to this," the source said. “It's pretty blatant what's happening. David Zaslav realizes he has to have this and doesn't want to pay more than $2.5B. And Adam's saying, honestly, it's not matched at $2.5. And [Zaslav] goes, ‘Yes, it is,’ and they're going back and forth.’ And so that's where we are. How do you let [WBD] down? Is there a way? Or does Zaslav come up with more money? Because then it doesn't have to be matching because David's paid more.

“And that's where we are. Adam's trying to be nice to David right now until David backs off his dogs. He’s trying to help David save face.’’

One source indicated Turner could go a different direction, focusing solely on the WNBA — considering the network already gained rights in April to broadcast WNBA games in the UK and Ireland. The idea that Turner could also keep a Thursday night-only NBA package is remote, considering that would water down NBC’s proposed package.

As of now, NBC’s package is expected to include Sunday Night games following the NFL season, while perhaps taking over ESPN’s Friday night slate and TNT’s second-round playoff and conference final package. Amazon would likely have one weekday night (Tuesday or Thursday) and Saturday nights, as well as the Play-in tournament, the In-Season Tournament, first-round playoff games and likely some international rights. Apple is out, Google seems to be pursuing the NBA’s League Pass package and ESPN —while also likely retaining some international rights — will continue with its “A” package of the Finals every year.

“ESPN did not want to alternate the finals, which I think Adam wanted to do,’’ a source said. “Adam wanted to make a package for NBC and alternate the finals with ESPN. ESPN fought it, fought, fought it, and finally said fine, ‘We'll pay the $2.6B, but no alternating the finals.’ And WB thought the league would never get that [$2.5] price from NBC. They said, ‘Sure, go shopping.’ They shopped it, they got the price. And now David Zaslav goes, ‘We’re screwed.’’’

The source said even Johnson, Barkley and iconic “Inside the NBA’’ studio would have no bearing on the league decision with Turner.

“I think it’s the greatest show on television, but it didn't cure cancer,’’ an industry source said. “Guess what else ended? Sopranos is off the air. Friends. Mash. Seinfeld. All great shows do come to an end. Sometimes it's time to go.’’

Lowkey, I think Silver should’ve stuck to his guns on alternating the Finals between ABC and NBC. Probably could’ve squeezed more out of both parties. It’s not like Disney would’ve walked away from the NBA altogether. This is where Stern shines over Silver as a negotiator and broker, Stern would’ve been take it or leave it :birdman:
 

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So as an attorney, I can tell you that a company will almost never set a price limit when it comes to a contract like this. The CBA isn’t a good comparison because that is a built in cost control mechanism and employee control mechanism built into NBA governance.

WB had the exclusive negotiating window, which expired. So while they have the right to match or offer a proposal, there’s nothing that says the NBA cannot accept counters of greater value. In fact, the NBA is telling you right now that even if WB meets NBC dollar for dollar, they value the overall economics and structure of NBC/Comcast more. Translation: we have the right to take the better deal. Why wouldn’t the NBA look at an Amazon deal that offers 500 million more and make the same argument?

SO WHY DOESN'T AMAZON
JUST PAY 3.5 BILLION FOR THE "A" PACKAGE?


WHY WOULD NBC ACCEPT
THE INFERIOR "B" PACKAGE FOR 2.5B
WHEN ESPN IS GETTING THE "A" PACKAGE
FOR 2.6 B?

COMMON SENSE WOULD SAY
RAISE THE BID AND GET THE "A" PACK RIGHT?
:devil:
:evil:

 

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I hope Silver puts on his big boy pants and pulls a Roger Goddell during this negotiation. He better tell the media partners that they need to step up the way they cover the NBA. No more of the clown SAS type shyt where the analysts don't watch the games and provide only stupid TMZ gossip takes. Roger Goddell woulda had Kendrick Perkins fired instantly.
 

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Lowkey, I think Silver should’ve stuck to his guns on alternating the Finals between ABC and NBC. Probably could’ve squeezed more out of both parties. It’s not like Disney would’ve walked away from the NBA altogether. This is where Stern shines over Silver as a negotiator and broker, Stern would’ve been take it or leave it :birdman:

That only works if NBC throws out a number higher than ESPN. But if ESPN outbids NBC by 100 million a year, that counts for something and it happened.
 

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SO WHY DOESN'T AMAZON
JUST PAY 3.5 BILLION FOR THE "A" PACKAGE?


WHY WOULD NBC ACCEPT
THE INFERIOR "B" PACKAGE FOR 2.5B
WHEN ESPN IS GETTING THE "A" PACKAGE
FOR 2.6 B?

COMMON SENSE WOULD SAY
RAISE THE BID AND GET THE "A" PACK RIGHT?
:devil:
:evil:


Amazon doesn’t have an over the air network so it has no reason to go after the A package. And the NBA wouldn’t want that lack of exposure. You need to be on broadcast television. Imagine if the Super Bowl was on Peacock. NBC and Comcast’s should’ve gotten more for that price. I’m not disagreeing but I think it’s because their B package is actually more expansive than Warner Brother’s. They’re basically getting the same package as ESPN minus the NBA finals.
 

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I hope Silver puts on his big boy pants and pulls a Roger Goddell during this negotiation. He better tell the media partners that they need to step up the way they cover the NBA. No more of the clown SAS type shyt where the analysts don't watch the games and provide only stupid TMZ gossip takes. Roger Goddell woulda had Kendrick Perkins fired instantly.
How they cover the NBA is how they think fans want it covered.

Not wanting gossipy hot takes to a hoops fan is like wondering why people would rather listen to Not Like Us than the new Nas & Premo record
 

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That only works if NBC throws out a number higher than ESPN. But if ESPN outbids NBC by 100 million a year, that counts for something and it happened.

But that’s it, I’m sure NBC would’ve paid even more if they were given the opportunity to get Finals games. Sounds like Disney didn’t want the Finals to go to bid at all and paid more to ensure NBC didn’t. I think NBC bid would’ve been 2.7 bill if alternate finals were offered and Disney likely would’ve had to match that. You are fair in your analysis, just seems like Silver could’ve called Disney’s bluff and gotten more in the end.
 
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