Last week, Warner Bros. Discovery CEO David Zaslav caused a stir by implying that Turner Sports may not sign a new arrangement with the NBA when its current contract expires in three years.
This caused my phone to ring as members of the sports media speculated that, after four decades, Turner and the NBA may be on the verge of a divorce.
What Zaslav said:
From Joe Flint of The Wall Street Journal:
“Sport is difficult.” — David Zaslav, CEO of Warner Bros. Discovery, on mounting expenses and ratings concerns. Once, sports “lifted all boats.” Declares that we have advantageous deals on March Madness, NHL, and baseball playoffs. Regarding NBA, he said, “We don’t need NBA.”
It cannot be a bargain for the past; it must be an agreement for the future. — David Zaslav, CEO of Warner Bros. Discovery, on the next NBA rights agreement.
David Zaslav, CEO of Warner Bros. Discovery, was captured by Getty Images.
What he stated previously: During a WBD earnings call on November 3, Zaslav discussed the NBA, including the following:
“We enjoy the NBA.” However, we will be disciplined. Ultimately, if there is an NBA contract, it will be a one that is highly favorable for both us and Adam [Silver, NBA commissioner]. However, we have a multitude of assets in athletics that no one else possesses. No one else has a worldwide sports business like ours. And we have a platform, a high-quality platform like HBO Max, that might produce 30 million viewers for a terrific piece of content in a short period of time. Imagine the implications for athletics. And we’ve had tremendous success in sports in Europe. Therefore, I believe it to be an opportunity. We appreciate the NBA, but we will be punished. I’m optimistic that we’ll be able to achieve something incredibly imaginative.”
What he did was negotiate a 10-year contract with TNT that immediately increased Charles Barkley’s compensation dramatically from $10 million per year. TNT also extended the contracts of the legendary “Inside the NBA” cast members. This was indicative of TNT’s aspirations and its desire to retain NBA programming. According to what I’ve been informed, the Barkley contract provisions for a contract review if TNT loses NBA rights, but it is unclear what that would entail.
The opinions of Zaslav imply something, but not everything. I would focus on these two quotations for genuine direction.
Zaslav stated, “It must be a contract for the future, not the past.”
Charles Barkley and co. have recently renewed their contracts with Turner Sports.
NBAE Images via Getty
This suggests that Zaslav would like the NBA to help increase subscriptions to HBO Max while attempting to maintain Turner’s revenue stream. ESPN does this with each new contract, obtaining rights for all of its platforms.
The future for multinational firms such as WBD is to attempt to sell subscriptions internationally, which is maybe what Zaslav has in mind when he discusses Turner’s partnership with the NBA.
ESPN/Disney, Amazon, and Apple, among others, will undoubtedly be interested in the same idea. It will be expensive, and I believe the NBA will ultimately have more than two distribution partners. Current partners might reduce the amount of cable games they provide. Consider TNT on Thursdays, but not on Tuesdays.
There is also the new in-season tournament that the NBA hopes will become a thing.
Stephen Curry and other global superstars placed the NBA in a favorable position to negotiate its next set of rights arrangements, beginning with the 2025-26 season.
Getty Pictures
Turner will be very active in keeping NBA rights, but there are no assurances given Zaslav’s emphasis on profit over expansion.
One final consideration about cost-cutting and expenditure reductions WBD is in the middle of layoffs, which began with 70 sports-related staff working in the background. There is a possibility that the corporation may reduce expenditure before making additional large investments.
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The World Cup began poorly for Fox Sports, which is not totally the network’s fault given it had nothing to do with the bribes that caused Qatar, a country that disrespects the rights of women and homosexuals, to be the host. Nonetheless, it was not excellent. As a result of the World Cup being relocated from summer to winter and the NFL’s dominance in the United States, the first game was shown on FS1 and not Fox, which lessened its significance. The fact that FS1 does not frequently send announcers to other games is indicative of how much it values production and how much we should respect the network. John Strong, Stuart Holden, and Jenny Taft attended Ecuador’s 2-0 victory over Qatar, however there was no post-match show. When the Qatari fans area was displayed, no women were visible. Fox Sports opted to disregard this in favor of advertising Qatar’s greatness. Again, a portion of this is attributable to conditions that Fox did not create, but it feels lesser than it should. Even for those who like soccer and are accustomed to its bad administration, the fact that the host nation disdains equal rights is abhorrent. Whether or if Fox needs to address the issue is uncertain.
Notice something missing in this photograph?
Getty Pictures
… LeBron James’ alternate Thursday Night Football show on Amazon was rather fantastic. Similar to the most of these supplementary listens, it is not ideal if you are truly invested in the game. James was joined by non-football players, with the exceptions of Dez Bryant and Jalen Ramsey. Jamie Foxx was the key to this version of “The Shop.” It goes without saying that he is Jamie Foxx. The fact that he is so humorous increased significantly to the enjoyment of the experience. Ramsey provided the show a viral moment by predicting that James will be accused of lying on Twitter. It was enjoyable because, with everyone present, it seemed like watching a game with LeBron and his pals. It did not provide the same degree of insight as the Manningcast, but it was informative enough that it may be worth revisiting when TNF has a terrible game on December 8 (Raiders-Rams). Jay Moskowitz, a Turner Sports PR representative, was among the WBD employees let go. Moskowitz is a diligent and diligent worker.
Will Apple and MLS expand the sport?
The cost for streaming next season’s Major League Soccer games on Apple TV+ was announced last week, and it quickly raised eyebrows within the sports media elite.
The figures: Citing the company’s “Apple Newsroom” press release, let’s examine it.
Beginning on February 1, fans may subscribe to MLS Season Pass on the Apple TV app for $14.99 per month or $99 each season, while Apple TV+ customers can join up for a discounted rate of $12.99 per month and $79 per season.
Gareth Bale (center) and his Los Angeles FC teammates celebrate their 2022 MLS Cup victory.
USA TODAY Athletics
Golazo!: I believe the majority of individuals have a fundamental misunderstanding about subscriptions, but I believe Apple does not.
Apple claims that these games will be accessible on billions of devices worldwide. Consequently, when I performed a typically unscientific survey, the notion that individuals will not subscribe “won.” Only 4.6% of the initial 5,000 respondents indicated that they would subscribe.
However, this misconception regarding subscription companies exists: There is no need for everyone. You actually do not require most. And you want to obtain as much money is possible from your most devoted and willing-to-pay admirers. So let’s perform some easy math. Let’s utilize the findings of our unscientific poll (which is undoubtedly biased toward active American sports fans), round up by 5%, and declare that Apple has a billion gadgets in circulation. That’s fifty million subscribers. (Easy math considering I majored in journalism.)
They will never achieve 50 million subscribers! You are accurate. Not possible.
However, I’m using this ludicrous figure to illustrate how Apple may recuperate the $250 million per year it pays MLS for the rights (MLS covers production expenses, so the league likely gets around $200 million, give or take).
Commissioner of Major League Soccer Don Garber
USA TODAY Athletics
Using the simple math of $100 per user, Apple/MLS simply needs 2.5 million subscribers every season to reach $250 million. We are discussing the capacity to reach the entire globe with no blackouts, but I cannot guarantee that they will meet this goal. We will determine if they can.
Considering the economics of subscriptions, the fact that soccer is a global sport, and Apple’s claim that more than a billion people regularly use an iPhone, it is plausible that Apple might convince 0.25 percent of iPhone users to subscribe to MLS.
Therefore, as a commercial proposal for Apple, it may make sense. Apple sends me a $1 monthly payment for storage on my children’s phones, which I am not certain they utilize. You nearly believe that they might be able to reach. 25 percent of Apple products by accident.
Alternatively, these estimates might be based on a ratio of Apple TV+ subscribers. The number of Apple’s subscribers is about 30 million, according to the internet (I don’t really believe the internet, but let’s assume it’s accurate). If two percent of Apple’s 30 million existing customers signed up for MLS, there would be just 600,000 users.
The MLS believes the program will have a broad appeal because the league contains players from 82 nations, 37 of whom are on World Cup squads.
There is speculation that Lionel Messi may terminate his career in Major League Soccer.
AFP Images via Getty
And here is something we previously wrote: What if the MLS added Lionel Messi? Could Messi support himself with digital subscriptions?
What I don’t get is why the MLS and Apple are giving free subscriptions to season ticket holders. Supposedly, 300,000-400,000 freebies are included. These are the most loyal and financially secure MLS consumers.
If Apple and MLS ever reveal subscription figures, these individuals will be included, but they are not paying. MLS and Apple hope that these individuals will promote the product. I would let them to do so and collect their money.
Warning card II: The two most popular sports worldwide are soccer and basketball. By far, the NBA is the finest professional basketball league in the world. The MLS is nothing near the finest soccer league. Numerous individuals, including those in the United States, may watch Premier League, Champions League, and any other soccer match they like. If the NBA were to pursue the MLS-Apple strategy, it may really work, although, as noted previously, I doubt it would get into an exclusive agreement and would probably advise against it at this time.
MLS has not yet announced partnerships with ESPN and Fox to continue simulcasting games on broadcast and cable television, but it still looks likely. I am aware that the network executives adore MLS commissioner Don Garber, but I do not see why they would support the league’s 10-year deal with Apple.
A deal that, if it works, has the potential to wipe out the networks’ companies. After everything is said and done, there will be an abundance of free MLS games behind the Apple barrier, as well as select games on ESPN, ESPN2, ESPN, FS1, ABC, and Fox.
During the MLS conference finals, NYCFC’s Alexander Callens defends Philadelphia Union player Alejandro Bedoya.
USA TODAY Athletics
Yellow card III: I tend to suspect that the MLS will expand as a worldwide league, but a transfer for a legend like Messi before to the 2026 World Cup in North America may generate excitement. To the dismay of American soccer fans, Major League Soccer has yet to shown a genuine desire to compete for talent with the sport’s elite.
No one came close to Apple’s $250 million offer, so this might be a nice money transaction. However, the increase that American soccer fans expect to see in the level of Major League Soccer does not appear imminent. Does MLS develop without this jump and with easy access to superior leagues already in place?
Red card: MLS is forcing me, a soccer fanatic, to determine whether I need it or not. If it were part of a larger service, included in the fee, such as in ESPN+’s arrangement with the NHL (out-of-market MLS games were previously included with ESPN+, but there were blackouts), the value proposition would be based on the whole content, not a simple yes or no on MLS.
The avid MLS supporter will give a thumbs-up. For this reason, sports are so important in the media landscape. We will purchase the games we enjoy.
Do you want someone like me, who already watches Premier League, Champions League, and the World Cup, to determine whether I am willing to pay $14.99 per month? Not convinced by that.
In addition to announcing Apple’s partnership with Major League Soccer in this newsletter in January, we also disclosed MLB’s agreement with the firm. The following is not entirely clear: What is Apple’s approach? I believe they desire for the MLS format to become universal. The rights haven’t been available in so many leagues for so long that it’s almost meaningless to contemplate. (This is also why the NBA is in a favorable position, as its rights deals will shortly expire.)
Commissioner of the NBA Adam Silver
AFP Images via Getty
Could Apple apply the model of Major League Soccer to another sports property? Possibly, but my instinct tells me that the NBA, even if I’m a larger believer in subscriptions, won’t make a deal like this if Apple wants all the rights. (It is almost unlikely in the reasonably near future unless all clubs’ RSN contracts are altered.)
Apple and Amazon excel at providing seamless and convenient one-stop purchasing, which makes them revolutionary firms. However, the NBA will not provide them with everything. Adam Silver, the NBA commissioner, may be observing, but he will want games to be aired and likely cable TV, in addition to streaming.
This agreement between Major League Soccer and Apple has the potential to be a game-changer for the league’s development, or it might stifle it. Apple will effectively control the league for the next decade. Players will even get Apple patches on their sleeves. It was the only agreement the MLS had, and the money was unmatched by any other offer.
How this operates may be more intriguing (from a sports media standpoint) than seeing Houston Dynamo play Real Salt Lake.
There will be a podcast the next week, but no newsletter the following Monday. Back on December 5