Broadcasts from almost every major professional and college sport could be impacted by the union of two of the biggest companies in media and entertainment.

Multiple outlets are reporting that Paramount Global and Warner Bros. Discovery are holding early talks about a merger that would have wide-reaching implications for live sports rights in the U.S. The two companies already work together in sports around March Madness, which is broadcasted annually by Paramount’s CBS and WBD’s trio of TBS, TNT and TruTV. 

Together, the two companies have (or are acquiring) live broadcast rights to the NFL, NBA, NHL, MLB, PGA Tour, NASCAR, Big Ten Conference and the aforementioned men’s basketball NCAA Tournament. Streaming (exclusive broadcasts and simulcasts) have become an integral part of both companies’ sports strategies. During a meeting on Tuesday, combining the Paramount+ and Max services was reportedly discussed by WBD CEO David Zaslav and Paramount CEO Bob Bakish.

As of close of business on Wednesday, WBD’s market cap was $28.43 billion, compared to $10.3 billion for Paramount. It’s unclear what the terms of any merger deal would be.

Impact on NBA Talks?

The biggest question mark for either company’s sports interests right now is WBD’s NBA deal, which expires after the 2024-25 season. Combining the vast sports assets of CBS could give WBD more flexibility in crafting its strategy as the NBA begins negotiations for its next package in 2024.

The NHL has been on the clock, so to speak, in expectation of a reworked deal with Diamond Sports Group for the local media rights of 11 teams. That agreement has yet to materialize, but league commissioner Gary Bettman said contingency plans are actively being prepared should the NHL need to step in to produce and distribute broadcasts.

“The biggest concern is making sure fans have access to our games,” Bettman told the Dallas Morning News. “We’re preparing alternatives for clubs. We’re going to make sure we’re in a position where games are available, and we’re going to seek to evolve with the times because the model has obviously been under some stress.”

Bettman’s comments arrive more than six weeks after the NHL was said to be nearing a deal to get back certain local rights ahead of schedule in return for contract modifications for DSG, the bankrupt parent of the Bally Sports regional sports networks. The NBA struck a similarly revised deal with DSG and will regain its affected rights at the end of the 2023-24 season, setting up a potentially historic intertwining of that league’s local and national media rights in its next cycle. 

While the NHL’s pact remains in development and DSG’s long-term survival is still an open question, Bettman said the league is actively working to establish a new economic framework for its local media rights, just as the NBA and MLB are doing.

“The longer-term business strategy is something that’s going to have to evolve,” Bettman said.

The NHL’s local rights contemplation coincides with Amazon’s reported consideration of an investment in DSG, a scenario that could materially change the company’s outlook. 

Oregon State and Washington State are slowly but surely piecing together a survival plan for life after the Pac-12.

Once the conference as we know it dissolves next summer, the two schools are set to become affiliate members of the West Coast Conference for the next two seasons in all sports besides football and baseball, according to multiple reports. School presidents and athletic directors are expected to vote on the matter on Thursday.

It’s another key step for OSU and WSU, which have already lined up a football scheduling alliance with the Mountain West Conference for 2024 that will cost the remaining two Pac-12 schools $14 million. The college baseball season typically begins in February, so there remains ample time to find those programs a home for 2025. (They will compete in their final Pac-12 seasons this spring.)

Last week, OSU and WSU received the blessing of the Washington state Supreme Court to take control of the Pac-12’s board for the time being. The two schools are blocking revenue payments totaling $61 million to the entire conference, as the 10 departing schools battle OSU and WSU in court.

The WCC has media rights deals with ESPN and CBS Sports, although financial terms are unknown. OSU and WSU would be able to compete for regular-season and postseason titles in the WCC, unlike their agreement with the MWC.

In the WCC, they would join Gonzaga, Loyola, Pepperdine, Portland, Saint Mary’s College of California, San Diego, San Francisco and Santa Clara. The WCC already has affiliate members for men’s water polo in Air Force, California Baptist and San Jose State, as well as Creighton for women’s rowing. Gonzaga is rumored to be exploring a move to the Big 12 as soon as next year.

Mirroring cutbacks associated with many corporate mergers, the XFL-USFL union is dropping teams in an effort to have a leaner, more sustainable spring football league. 

Soon after the two leagues received regulatory approval to merge, advancing a plan first announced in September, the USFL Players Association received formal notification that the USFL’s Birmingham Stallions, Houston Gamblers, Memphis Showboats and Michigan Panthers will live on in the new entity. That decision means the end of the New Jersey Generals, New Orleans Breakers, Philadelphia Stars and Pittsburgh Maulers.

The XFL, meanwhile, previously had teams in Arlington, Houston, Las Vegas, Orlando, Seattle, St. Louis, San Antonio and Washington, D.C. It’s expected that four of those teams will join the surviving USFL teams to form a new eight-team league debuting in March 2024.

Changing Channels

NBC, which had carried the USFL for two seasons following that league’s 2022 rebirth, will not be part of the broadcast mix for the merged entity, as any continuation with the league would be precluded by early spring golf commitments. Games will likely be carried by Disney’s ESPN and ABC and by Fox Sports.

Other key details including the new league name and set of participating teams remain in development.

“We are pleased to have completed the antitrust review process,” the leagues said following the Nov. 30 regulatory clearance. “We are now finalizing terms of the definitive agreement and will share more about this new league in the coming weeks.”

The new entity will look to break a long history of failed pro football leagues that sought to either challenge or supplement the NFL, including prior iterations of both the USFL and XFL.