"It's not good for everyone," Charles Barkley candidly admits as TNT's NBA future becomes uncertain.
The retired NBA player and co-host of "Inside the NBA" recently spoke on "The Dan Patrick Show" about the probability of the network losing the rights to broadcast the league's games next year, which could potentially result in the end of the program on Turner's network. Barkley expressed concern for his colleagues, blaming the situation on the "crazy people" in charge at WBD.
"These people I work with, they messed this whole thing up - it's clear!" yelled Barkley, clearly frustrated. He pointed to WBD's CEO David Zaslav's controversial 2022 statement that they "don't need the NBA," which likely upset NBA commissioner Adam Silver and led to the current predicament.
"It's sad for all of us," said Barkley.
The NBA is currently attempting to renegotiate broadcast rights with media companies, aiming for a substantial increase in the amount paid for the games. WBD, Warner Bros. Discovery's parent company that owns CNN and Turner networks, had an exclusive window to renew its contract, which expired without a deal, allowing other bidders to participate.
According to Bloomberg's Lucas Shaw, the NBA is asking for $2.3 billion for the broadcast rights, a significant increase from its current $1 billion payment. Zaslav reportedly maxed out at $2.1 billion in negotiations.
"The league walked away, right into the arms of Comcast and Amazon," Shaw wrote.
NBCU is reportedly offering $2.5 billion annually for the incredible game package, including airing the games on its broadcast network, something WBD does not have. WBD stock fell nearly 10% to a record low after The Wall Street Journal first reported this information. Although it's made a slight recovery, shares still linger at historic lows, closing at $7.70 a share on Thursday.
WBD and the NBA representatives declined to comment on the situation.
In an attempt to alleviate investor fears, Zaslav stated on a recent earnings call that he remained optimistic about reaching an agreement suitable for both sides. While NBCU's offer is more than double WBD's current price, WBD executives have maintained the ability to match another offer, such as Amazon's. It's possible Zaslav will manage to reach a deal for some games, but as they fall from WBD's grasp, morale has plummeted at TNT, evident in Barkley's candid comments.
Although WBD retains the rights to March Madness games, MLB, NHL, NASCAR, and the recently acquired College Football Playoff games from ESPN, the NBA is WBD's crown jewel for its sports offerings. "Inside the NBA" has been a highlight on the network. Additionally, WBD signed Barkley, an anchor of the show, to a new 10-year contract in 2023.
NBCU could grab the rights from WBD in a potential takeover. The company offered to pay $2.5 billion per year for the highly sought-after package, including airing the games on its broadcast network - a feature WBD does not possess, since its linear TV lineup only encompasses cable channels.
NBCU's bid has sent shivers through Wall Street. When The Wall Street Journal initially reported the news, WBD's stock plunged almost 10% to a historic low. Despite a slight rebound, shares remain near all-time lows.
WBD bigwigs have tried to pacify investors in recent weeks. "I'm still positive we can reach a deal that works for both parties," said Zaslav. Executives have constantly reiterated WBD's right to match competing bids, implying it's possible Zaslav might find a deal for some games. However, as the games slink out of WBD grip, spirits have taken a hit at TNT, exemplified by Barkley's honest confession.
WBD has ventured heavily into live sports as a major draw for audiences. "We're super passionate about sports, and it's a critical part of our DNA," Wiedenfels, WBD's CFO, affirmed at J.P. Morgan's Tech, Media & Communications conference. "But we're also always going to be disciplined," he added, stressing the necessity of careful decision-making when entering into sports deals.
Simply put, WBD must decide whether to pay a large sum to the NBA for a continuation of their relationship or relinquish the partnership they've maintained for almost 40 years.
WBD also has a partnership with Disney and Fox Corp. to launch Venu, a forthcoming joint sports streaming service. Losing the NBA might cause complications in this collaboration. Furthermore, Max, WBD's primary streaming service, has marketed live sports as a vital differentiator, but losing the NBA could harm this pitch.
Wiedenfels acknowledged the importance of sports to the company while discussing financial caution at the J.P. Morgan's Tech, Media & Communications conference. "We're always going to go after these big, coveted products. But at the same time, it's critical to be disciplined."
Read also:
- Lack of snow also opens up new opportunities for winter tourism
- Abrupt end to e-car subsidies
- The chemical industry has little confidence
- Intersport boss hopes for sales boom through sporting events
In the context of the current negotiation for NBA broadcast rights, Barkley expressed concerns about the potential impact on the business and media aspects of "Inside the NBA" if TNT loses the rights to the games.
Given the ongoing dispute between the NBA and WBD, there have been speculations about potential changes in the media landscape, which could significantly impact the business strategy of companies that rely on sports broadcasting for their revenue and audience engagement.
Source: edition.cnn.com
