September 23, 2024

Read in Browser [[link removed]]

POWERED BY

Warner Bros. Discovery claims the NBA added impossible terms to block TNT Sports from matching Amazon’s offer. Poison pills, platform disputes, and a looming legal fight—here’s what we know.

— Eric Fisher [[link removed]], David Rumsey [[link removed]], and Colin Salao [[link removed]]

TNT Sports Accuses NBA of Adding Poison Pills to Amazon Rights [[link removed]]

Ron Chenoy-Imagn Images

Already having accused the NBA of engaging in several contract breaches [[link removed]], Warner Bros. Discovery is levying yet another claim against the league: inserting poison pills into its rights deal with Amazon.

Responding late Friday to the league’s motion to dismiss WBD’s lawsuit [[link removed]], the TNT Sports parent says the NBA inserted a series of “purposely onerous or immaterial” contractual provisions designed to make it impossible for media company to exercise its matching rights and gain the “C” rights package between 2025 and 2036. That set of rights, estimated at more than $1.8 billion per year and including a conference final every other season, also features 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.

WBD alleged the league’s poison pills include:

Cross-promotion with the NFL: WBD claims “the Amazon offer required that NBA games be shown on a platform that also shows NFL games—even though the NBA knows plaintiffs do not have NFL rights.” Escrow requirements: WBD claims it was asked to fund a $3.2 billion escrow requirement within five days of signing an agreement “when the NBA knew WBD had only ~$2.98 billion cash.” The company continued that “the escrow requirement also was a farce because the NBA enjoyed unfettered discretion to relieve Amazon from it.” Credit rating and damages: WBD claims the NBA would be allowed to terminate rights “if either S&P or Moody’s were to downgrade WBD’s credit rating below a certain threshold, and recover a termination fee of up to $4.5 billion.” A downgrade is much more likely for WBD than it is for Amazon given the relative size and health of both companies.

“The NBA did everything it could to frustrate [WBD’s] ability to match an offer by Amazon. And when that tactic failed, the NBA simply ignored its obligations and baselessly rejected [WBD’s] match,” the company said in a filing with the Supreme Court of the State of New York, where the case is being heard.

Despite that claim of bad faith furthering WBD’s claim of contract breach by the NBA, the company says it then went further and matched the Amazon offer anyway. That match, WBD says, includes equal payments for the same package of games, distribution on a “popular, wide-reaching streaming platform” (Max), financial backstops to ensure payment of rights fees, and cross-promotion during events such as the College Football Playoff and March Madness.

“[WBD’s] matching rights are far broader than the NBA misleadingly asserts,” the company said in its filing.

Platform Debate

WBD, meanwhile, also sought to take aim at the NBA’s argument that the “C” rights package involved only streaming, and as a result, any attempt to include linear distribution, as TNT Sports has, results in an improper and incomplete match of rights.

“Contrary to the NBA’s argument, the Amazon offer is not limited to ‘one specific form of combined audio and video distribution.’ Prime Video is distributed via multiple forms of non-broadcast television to consumers,” WBD said. “The NBA insists the Amazon offer is ‘internet-only.’ That is both false and irrelevant.”

Next Steps

The league has until Oct. 2 to file further support for its motion to dismiss.

Without an immediate ruling to dismiss by Judge Joel Cohen or a settlement, the case is almost certain to intersect with the 2024–2025 NBA season [[link removed]]. The NBA preseason begins Oct. 4, and the regular season starts Oct. 22. The two sides have agreed to an expedited schedule, and a trial, should the case get to that point, is tentatively set for early April. Appeals, however, could see the dispute potentially drag into the 2025–2026 season, when the new set of national rights that also include ESPN and NBC Sports in addition to Amazon are due to start.

NFL Stadium Sagas Highlighted by Monday Night Doubleheader [[link removed]]

Buffalo Bills

Week 3 NFL action concludes with the first of four Monday Night Football doubleheaders this season, and all four teams playing in prime time have one thing in common. The Jaguars, Bills, Commanders, and Bengals are four of the league’s 10 franchises in the midst of major—and often contentious—stadium projects.

At 7:30 p.m. ET on ESPN, the Jaguars visit the Bills, who are building a new stadium adjacent to their current home at a projected cost of $1.7 billion (already $300 million more than originally planned [[link removed]])—and with an interesting caveat. Erie County is paying $250 million for the construction and, on Monday, began selling municipal bonds [[link removed]] to help fund up to half its share. The bonds start at $5,000 and will pay out a yet-to-be-determined interest rate on March 15 and Sept. 15 each year, beginning in 2025.

Buffalo’s opponent, Jacksonville, is waiting on league approval for a $1.4 billion plan (that includes $775 million in public money) to renovate EverBank Stadium—a process that would require the Jaguars to play in a temporary stadium during the 2027 season [[link removed]]. Owners could vote on the deal next month.

Hard Works Remains

At 8:15 p.m. ET on ABC, the Bengals host the Commanders in a matchup of two clubs hoping to seal stadium deals in the near future.

The Bengals’ lease at Paycor Stadium expires in 2026, and, last week, Hamilton County released a $1.25 billion proposal, complete with renderings [[link removed]], to overhaul the 24-year-old venue and surrounding area. Getting that deal approved could be complicated by the Browns [[link removed]] also seeking funds from the state of Ohio. This comes after the team announced $120 million worth of upgrades [[link removed]] to its stadium this spring.

For the Commanders, the facility situation is even trickier. While the team’s lease at the newly renamed Northwest Stadium expires in 2027, Washington owner Josh Harris has said that 2030 is a “realistic target” for a new one to open [[link removed]]. Conversations are still taking place with officials in D.C. (revolving around the site of the old RFK Stadium), Virginia, and Maryland, where the Commanders currently play.

League Updates

Six other NFL franchises are also working through stadium situations.

The Titans are building a $2.1 billion dome [[link removed]] that is set to open in 2027, the Panthers’ Bank of America Stadium is approved for an $800 million makeover [[link removed]], and the Ravens’ M&T Bank Stadium is getting a multiphase $430 million renovation [[link removed]] that will be completed in 2026.

On the flip side, the Bears look to be fighting an uphill battle [[link removed]] as they try to secure funding for half the cost of the team’s proposed $4.7 billion dome. Meanwhile, the Chiefs [[link removed]] and Browns [[link removed]] continue to struggle to strike deals with local officials as their leases expire in 2031 and 2028, respectively.

SPONSORED BY WENDY’S

Get Wendy’s $5 Big Noon Saucy Deal

This game day, get Wendy’s $5 Big Noon Saucy Deal [[link removed]]. With 6-piece Saucy Nuggs, a small fry, and a small drink, it can’t be beat. Pick from seven tasty flavors of Saucy Nuggs like Honey BBQ, Garlic Parm, and Buffalo.

The best offense this season is the Wendy’s $5 Big Noon Saucy Deal. Fall is the best sports season of the year. Sauce up your tailgate in the only way that makes sense—with Wendy’s® Saucy Nuggs.

Download [[link removed]] the Wendy’s app for this deal and order today.

ONE BIG FIG Paid Regardless

Kirby Lee-Imagn Images

$104 million

The amount Nike paid to outgoing CEO John Donahoe [[link removed]] through his five-year term, according to Bloomberg. Salary, bonuses, and shares comprised $83.6 million, while the rest was from other benefits. Donahoe, who announced he will retire next month [[link removed]], was appointed as the apparel giant’s CEO in January 2020—but the company has lost tens of billions in market value since the beginning of his tenure.

Donahoe will be replaced by former top executive Elliott Hill [[link removed]] starting Oct. 14. Nike shares are up more than 7% since Donahoe’s retirement announcement.

TUNED IN Roku President on Prioritizing Live Sports, Streaming Landscape

FOS illustration

Roku president Charlie Collier sat down with Eric Fisher at the Front Office Sports Tuned In [[link removed]] summit to discuss the company’s evolution from a device brand to an operating system, serving as the “front door” for millions of households’ streaming experiences. Collier highlighted Roku’s growing role in sports and emphasized the importance of its scale in navigating the fragmented streaming landscape while enhancing the fan experience.

Watch the full interview here [[link removed]].

STATUS REPORT One Up, Two Down, One Push

Orlando Ramirez-Imagn Images

White Sox ⬇ On Sunday, Chicago lost its 120th game of the season, tying the 1962 Mets for the most losses in the modern era and breaking the 2003 Tigers’ American League record of 119. The White Sox, 36–120, would need to wrap up the season with a six-game winning streak to avoid the single-season futility record. The team, which is also facing questions about its future home [[link removed]], will host the Angels for three games starting Tuesday, then will travel to Detroit for a weekend series.

Women’s Super League ⬇ Manchester United sold just 12,000 tickets at Old Trafford [[link removed]] for its season opener Saturday against West Ham. While the team has yet to release the game’s total attendance, the number of tickets sold lags behind the 28,737 attendees of Man United’s match against Chelsea in May, or the record 43,615 who came to the iconic stadium to watch the team play Manchester City in November.

Daniel Ricciardo ⬆⬇ The eight-time race winner may have seen the checkered flag one final time in Formula One at Sunday’s Singapore Grand Prix as Ziggo Sport reported last week the Australian could be replaced by Liam Lawson [[link removed]] for the final six races of the calendar. The RB driver did have a consequential final race, pitting near the end to eventually take the fastest lap—which took a point off race winner Lando Norris. The McLaren driver is chasing Ricciardo’s former Red Bull teammate Max Verstappen for the drivers’ championship. The RB and Red Bull teams share the same owner.

Team Europe ⬆ After relinquishing the Laver Cup [[link removed]] for the last two years, the Europeans are back on top, coming from behind to defeat Team World, 13–11, Sunday in Berlin. Each member of Team Europe, led by Alexander Zverev, Carlos Alcaraz, and Daniil Medvedev, all ranked in the top five of men’s tennis, will receive $250,000, while Team World, led by Americans Taylor Fritz, Frances Tiafoe, and Ben Shelton [[link removed]], will take home $125,000 apiece.

SPONSORED BY NIELSEN

Hispanic Media Consumption and Engagement

[[link removed]]

Hispanics aren’t just watching the game, they’re changing it [[link removed]]. This group makes up nearly one-fifth of the U.S. population, has $3.4 trillion in purchasing power, and has a quickly growing appetite for sports of all sorts.

Hispanic audience viewership of the Super Bowl has increased 51% from 2021 to 2024. Nielsen’s latest diverse audience insights report [[link removed]] provides a deeper look into how Hispanic fans engage with sports media and are shaping the future of U.S. sports culture.

To help brands, leagues, and media-rights holders connect with this critical audience, Nielsen’s Fanáticos report [[link removed]] outlines three essential insights: how Hispanic audiences are tuning in to live sports, how they show up for the brands that support the sports they care about, and how Hispanic athletes’ influence extends well beyond the field.

Conversation Starters Sunday’s game between the Panthers and Raiders was the first time two NFL teams led by female presidents [[link removed]] faced off. The two most expensive CFB games over the weekend [[link removed]] were Oklahoma-Tennessee, the Sooners’ first SEC game, and Nebraska-Illinois, the Cornhuskers’ 400th straight sellout. The Savannah Bananas sold out Citizens Bank Park in Philadelphia, another stop on the team’s Banana Ball World Tour. Check it out [[link removed]]. Editors’ Picks Everton Says It Has Deal to Sell to U.S. Billionaire Dan Friedkin [[link removed]]by Margaret Fleming [[link removed]]Everton has been close to a deal to sell before. Kendrick Perkins Would Have Played for John Calipari If NIL Existed [[link removed]]by Alex Schiffer [[link removed]]The former Celtic turned ESPN commentator went to the NBA right out of high school. Caitlin Clark’s Record Rookie Season May Have Just One Game Left [[link removed]]by David Rumsey [[link removed]]Indiana faces a must-win game Wednesday night in Connecticut. Advertise [[link removed]] Awards [[link removed]] Learning [[link removed]] Video [[link removed]] Podcast [[link removed]] Written by Eric Fisher [[link removed]], David Rumsey [[link removed]], Colin Salao [[link removed]] Edited by Matthew Tabeek [[link removed]], Or Moyal [[link removed]], Catherine Chen [[link removed]]

If this email was forwarded to you, you can subscribe here [[link removed]].

Update your preferences [link removed] / Unsubscribe [link removed]

Copyright © 2024 Front Office Sports. All rights reserved.

460 Park Avenue South, 7th Floor, New York NY, 10016