If Paramount's merger with Warner Bros. Discovery is approved, Turner Sports' recent strategy of acquiring lower-cost sports rights could be reversed, as Paramount already holds major sports contracts and seeks significant cost savings.
Turner's Recent Sports Acquisitions
Since losing NBA rights, Turner Sports (under WBD) has secured several secondary sports deals to bolster its distribution power:
- French Open rights in a 10-year agreement (2024)
- Sublicensed early round College Football Playoff games from ESPN (2024)
- Multi-year deal for Unrivaled women's basketball league
- Renewed agreement with All Elite Wrestling
- Existing portfolio includes MLB, NHL, March Madness, and Big East college basketball
These deals aimed to support TNT, TBS, and TruTV during carriage negotiations with pay-TV providers.
Paramount's Established Sports Holdings
Paramount already owns high-value sports rights, including:
- NFL
- The Masters
- March Madness
- Big Ten football and basketball
Given this portfolio, secondary sports rights like the French Open or Unrivaled are unlikely to enhance carriage negotiations or add subscribers to the combined HBO Max-Paramount+ service, which has about 200 million global subscribers.
Financial Pressures and Strategic Shifts
Paramount is targeting $6 billion in synergies and has committed to producing 30 theatrical films. Acquiring or renewing Tier 2 or Tier 3 sports rights, such as regular season MLB and NHL packages, may not align with these capital allocation goals. Additionally, the NFL is expected to demand higher fees in upcoming renewals.
Turner's MLB and NHL rights expire after the 2028 season. Under Paramount, renewing these deals is less critical, especially as MLB plans to revamp its media rights packaging post-2028.
Jeff Shell's Role in Question
Jeff Shell, president of Turner Sports and a proponent of sports programming, faces an uncertain future in the combined entity. Shell was not involved in merger talks and was absent from recent Paramount investor calls. His position may depend on Paramount CEO David Ellison's leadership decisions, and Shell is also under internal investigation.
Industry Reactions and Future Outlook
Sports executives suggest CBS (Paramount's network) might minimize sports on TNT, leveraging its own portfolio instead. This could free up sports rights for other companies like Versant. Fox CEO Lachlan Murdoch hinted at a "rebalancing" of sports portfolios due to rising NFL costs. Versant CEO Mark Lazarus expressed readiness for shifts in the sports landscape.
The merger and NFL's new deal are likely catalysts for a major reshuffling of sports rights after 2028.
