July 25, 2024

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The NBA officially chooses Amazon over Warner Bros. Discovery, but a legal battle could be coming soon. … Brett Favre’s business partner pleads guilty to wire fraud. … Diamond Sports Group is close to a set of deals that could give it new life. … FOS Explains tackles why the Celtics are suddenly for sale and what to expect. … And we recall the end of the 2011 NFL lockout.

— Eric Fisher [[link removed]], A.J. Perez [[link removed]], and Colin Salao [[link removed]]

NBA Rejects TNT Sports Bid, Chooses Amazon for National Media Rights [[link removed]]

Ron Chenoy-USA TODAY Sports

In just 48 hours, the answer to TNT Sports and parent company Warner Bros. Discovery has arrived from the NBA: thanks, but no thanks.

The league has rejected Monday’s attempt [[link removed]] from TNT Sports to exercise its matching rights and supplant a rival bid from Amazon for a piece of the league’s national media rights. In conveying its decision, the NBA said TNT Sports and WBD failed to meet the terms of the rival bid from the online streaming and retail giant.

“Warner Bros. Discovery’s most recent proposal did not match the terms of Amazon Prime Video’s offer and, therefore, we have entered into a long-term arrangement with Amazon,” the league said. “Throughout these negotiations, our primary objective has been to maximize the reach and accessibility of our games for our fans. Our new arrangements with Amazon supports this goal by complementing the broadcast, cable and streaming package that are already part of our new Disney and NBCUniversal arrangements.

“All three partners have also committed substantial resources to promote the league and enhance the fan experience,” the NBA said.

The league’s statement was part of an official, and expected, announcement of the 11-year, $76 billion set of rights deals with Disney, NBC Sports, and Amazon. The NBA had intended to make that statement before Friday’s start of the Paris Olympics, and NBC Sports parent Comcast essentially jumped the gun [[link removed]] Tuesday with its quarterly earnings. NBC Sports on Wednesday confirmed that is bringing back the celebrated “Roundball Rock” theme song that was part of its NBA coverage in the 1990s.

TNT Sports Showdown

The league’s moves now set up a high-stakes battle [[link removed]] between the NBA and TNT Sports that could ultimately reach a courtroom, and the saga is still far from over. Industry sources said it’s expected that the parties will now move to mediation in an attempt to resolve the issue.

But as has been the case since the NBA completed its agreements with Disney, NBC Sports, and Amazon, the TNT Sports situation is premised on WBD pushing to stay in business with a league partner clearly looking to take its games elsewhere.

TNT Sports has been targeting Amazon’s “C” package with the NBA, a set of rights estimated at $1.8 billion per year and including a conference final every other season, early-round playoffs in line with what is currently on NBA TV, weekly regular-season broadcasts, the Emirates NBA Cup, and WNBA rights, among other assets.

“We have matched the Amazon offer, as we have a contractual right to do, and do not believe the NBA can reject it,” TNT Sports said. “In doing so, they are rejecting the many fans who continue to show their unwavering support for our best-in-class coverage. … We think they have grossly misinterpreted our contractual rights with respect to the 2025-26 season and beyond, and we will take appropriate action.”

Over at the WNBA

The announcements, meanwhile, present further confirmation of the NBA reaching a transformative set of WNBA agreements [[link removed]] expected to be worth $200 million per year, or $2.2 billion over the term. Notably, the pacts end an exclusive Disney hold on the WNBA Finals. The event will now be shared between Disney (five times during the term), and Amazon and NBC Sports (three each), and notably gives Amazon a major league championship in its fast-growing sports portfolio.

“Partnering with Disney, Amazon and NBCU marks a monumental chapter in WNBA history and clearly demonstrates the significant rise in value and the historic level of interest in women’s basketball,” said WNBA commissioner Cathy Engelbert.

Despite the big financial boost, representing a landmark event for the development of women’s pro sports, it remains a fraction of the overall NBA pacts, and given the soaring popularity of the WNBA, is seen in some corners as improperly small [[link removed]].

Brett Favre Business Partner Pleads Guilty for Role in Welfare Scandal [[link removed]]

C-SPAN

Brett Favre’s business partner in a drug company pleaded guilty in a Mississippi federal court Wednesday for his role in a welfare scandal. The drug company had illegally received more than $2 million of federal welfare funds.

Prevacus founder Jake VanLandingham pleaded guilty to a single count of wire fraud [[link removed]], a charge that carries up to 20 years in prison and a fine of up to $250,000. VanLandingham was released on a $10,000 bond as he awaits sentencing.

Favre has denied any wrongdoing as his ties to the misappropriation of funds and he has not been charged criminally.

“Favre is the next to be indicted,” Matt Tympanick, a federal criminal defense attorney who is not involved in the case but has closely observed it, tells Front Office Sports. “The feds now have someone who can tie Favre to the News and can articulate the alleged scheme.”

“The News” are Nancy and Zach New, the heads of a nonprofit Mississippi Community Education Center where the Temporary Assistance for Needy Families funds were funneled through to Favre and others. John Davis, the head of Mississippi Department of Human Services when the TANF money was illegally distributed, also pleaded guilty to federal charges.

With VanLandingham’s plea, federal prosecutors have now charged seven people who were part of a scheme that saw more than $90 million in welfare money illegally diverted—federal money earmarked for the poorest residents of Mississippi, the most impoverished state in the U.S. The federal investigation remains ongoing.

“The purpose of the scheme … was for VanLandingham to unlawfully enrich himself by making materially false and fraudulent representations that he would use certain funds, including funds obtained from MDHS through MCEC, to develop a pharmaceutical treatment for concussions,” prosecutors wrote in the charging document.

The News and Davis entered into plea deals that were contingent on their cooperation with federal investigators. The plea supplement for VanLandingham—a document that typically includes a cooperation agreement—was filed under seal in U.S. District Court for the Southern District of Mississippi.

Prevacus was developing two concussion-related treatments when the company received $2.2 million in TANF funds in 2019. Favre served as a spokesperson for the company and was the largest individual investor in Prevacus, according to court records.

Text messages from Favre and VanLandingham that have been made public in a lawsuit filed by MDHS have shown their interactions with others involved in the scandal, like Davis and the News. Both Favre and VanLandingham are also defendants in that pending civil case.

“Surprise [John Davis] with a vehicle. … We could get him a Raptor,” Favre wrote in a January 2019 text [[link removed]] to VanLandingham.

FRONT OFFICE SPORTS EVENTS

The Art of Investing

Front Office Sports is headed to the Hamptons on Aug. 2 for Huddle in the Hamptons [[link removed]]—bringing together business leaders in sports, entertainment, technology, and media for an afternoon of panels, networking, and racket sports.

Kicking off a series of intimate and engaging conversations, the day starts by diving into the art of investing with Wale Ogunleye, Midge Purce, and Jay Williams.

From start-ups to Fortune 500 board seats, opportunities exist for athletes at all company life cycle stages. We assess these opportunities through the lens of the athlete entrepreneur and the businesses and advisers who make it happen.

To become a partner or learn more about the event, visit our website [[link removed]].

DSG Nears Deals With Comcast, NBA, NHL to Aid Reorganization [[link removed]]

Jerome Miron-USA TODAY Sports

Diamond Sports Group is closing in on a big trifecta of agreements that could give the bankrupt regional sports network operator a sizable leg up in its reorganization efforts.

The Bally Sports parent told a U.S. bankruptcy court Wednesday that it is postponing a scheduled July 29 hearing to confirm its reorganization plan. The delay is aimed at giving the company more time to complete not only a distribution deal with Comcast but new programming contracts with the NBA and NHL.

The pacts, if finalized, would resolve three of DSG’s more problematic areas in recent months. Comcast pulled Bally Sports stations off its systems in May, a major flashpoint in a growing carriage battle [[link removed]] involving the No. 2 U.S. cable carrier. According to industry sources, DSG is expected to agree to Comcast’s long-held insistence that the Bally Sports RSNs move to a premium-level tier, just as it has recently treated similar channels such as the Mid-Atlantic Sports Network [[link removed]] and SportsNet Pittsburgh.

The NBA and NHL, meanwhile, have both made plain [[link removed]] before the court their concerns about DSG emerging from bankruptcy as a viable company. Reaching new agreements would clearly signal a change in sentiment, and perhaps place more pressure on MLB, which in recent months has been the most outspoken [[link removed]] among the major pro leagues about their frustration with DSG.

“While no agreements have been reached at this time, these discussions are ongoing … with significant progress being made,” said DSG attorney Brian Hermann.

Not Quite Done

DSG has not yet established a new schedule to confirm its reorganization plan, but Hermann intends the timetable to move by “days, and not weeks.” The final timing will, of course, depend on if and when the company is able to complete any or all of the three contracts. A key driver of the final schedule will also be the October starts of the 2024–2025 NBA and NHL seasons, which DSG intends to precede with its deals.

Despite the tone of optimism Hermann sought to convey before Judge Christopher Lopez, the lawyer nonetheless said there is still a chance of the talks failing and DSG ultimately not being able to reorganize.

“That is not our focus today, but that is a possibility, and that’s not lost on us,” Hermann said.

None of the involved leagues commented during Wednesday’s status conference with the court.

FOS EXPLAINS Celtics’ $5 Billion Valuation: Sale on Horizon?

FOS graphic

In 2002, the Celtics were valued at $306 million. Today, they are worth a staggering $4.7 billion, making them the NBA’s fourth-highest-valued team. After winning an 18th title, could they become basketball’s first $5 billion team?

FOS Explains dives into [[link removed]] Boston’s incredible rise in value, strategic ownership moves, and the future of this historic franchise as it hits the market. Discover the key players, the potential buyers, and the financial challenges ahead.

🎧 Watch and subscribe on YouTube [[link removed]].

TIME CAPSULE July 25, 2011: End of the Battle

Mark J. Rebilas-USA TODAY Sports

On this day 13 years ago: The NFL and NFL Players Association agreed to terms on a 10-year labor agreement, ending a lockout by owners lasting more than four months. The dispute saw players and management divided on a wide range of core issues, including revenue splits, the length of the season, health and safety concerns, retired player benefits, and free-agency provisions. After extended, often-bitter negotiations, a key breakthrough emerged in which the sides agreed on an “all-revenue” system in which players received a minimum 47% of everything the league generated. The prior pact involved players receiving 57% of revenue, but only after owners received roughly $1 billion off the top for operating and development costs.

Also impactful was a new cap floor arriving in 2013 that mandated teams must spend at least 89% of each year’s salary cap, up from the prior 84%. The move not only helped funnel more money to players but also boosted competitive parity, which in turn was a boon for the league.

The decade-long pact contained no opt-out provisions. Combined with the subsequent labor agreement running through 2030, the NFL has enjoyed immense growth in popularity and economic power, fueled in large part by the extended labor peace and the terms within the pacts. The NFL’s salary cap of $120.38 million in 2011 has more than doubled in 2024 to $255.4 million. Annual league revenue has similarly grown from $9.3 billion before the lockout to about $19 billion now. And average team franchise values have soared from $1.04 billion to $5.1 billion.

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Conversation Starters Snoop Dogg will be one of the final torch-bearers [[link removed]] for the Olympics. The rapper is already playing a significant role in NBC’s coverage of the Paris Games. The 76ers’ lease of the Wells Fargo Center expires after the 2030–2031 season—and it could trigger the franchise to move out of Philadelphia. New Jersey is pushing [[link removed]] for the team to move to Camden. The Intuit Dome, the new home of the Clippers that opens next month, will have T-shirt cannons in its halo board that can hit every seat. Take a look [[link removed]]. Editors’ Picks World’s Best Cyclist Skipping Olympics for Love [[link removed]]by Dennis Young [[link removed]]Cycling’s power couple won’t be in Paris after a Slovenian snub. The Perfect Storm Propelling ‘EA Sports College Football’ to Early Success [[link removed]]by Sam Becker [[link removed]]Growing fandom and a long wait have already reaped dividends for EA. Utah Officially Wins 2034 Winter Olympic, Paralympic Games Bid [[link removed]]by Margaret Fleming [[link removed]]Salt Lake City last hosted the Winter Olympics in 2002. Question of the Day

Have you lost access to any game broadcasts due to DSG disputes with cable carriers?

Yes [[link removed]] No [[link removed]]

Wednesday’s result: 58% of respondents think the NFL should expand the regular-season schedule from 17 to 18 games.

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