Over the past year, Warner Bros. Discovery has been issuing mixed messages regarding its strategy in sports. Recent remarks from WBD CEO David Zaslav and TNT Sports chairman Luis Silberwasser further highlight the uncertainty surrounding the company’s direction.
The saga began with the dramatic conclusion of the NBA on TNT, concluding a successful, decades-long partnership, coupled with Zaslav’s ambiguous statements throughout the transition. Back in 2022, he asserted that Warner Bros. Discovery “didn’t need the NBA.” However, when the NBA opted to partner with ESPN, NBC, and Amazon for its upcoming contracts, the company filed a lawsuit to maintain its television rights. After settling that lawsuit and ultimately losing the NBA rights, Zaslav donned his rose-tinted glasses, claiming the loss was “a great decision.” If this decision was indeed so great, why pursue legal action to thwart it?
While the complexities of the WBD/TNT relationship with the NBA are perplexing, the future of the company’s involvement in sports is becoming increasingly convoluted. During a recent earnings call, Zaslav highlighted the significance of WBD’s entertainment ventures, downplaying the necessity of adding more live sports properties. He also subtly critiqued competitors like NBC and Peacock, who are heavily investing in sports as a central feature of their streaming services.
“We don’t need any more sports anywhere in the world in order to support our business; we would buy sports if we thought it would enhance our business. And it’s going to get more difficult. You know, some of those prices being paid, and some of the competitors are opting to go to sports instead of doing what we do.”
So, it appears that WBD is gradually stepping away from the sports realm, or is it? In a podcast with Puck’s John Ourand, TNT Sports CEO Luis Silberwasser revealed interest in acquiring UFC and Formula 1 contracts. “We like both,” Silberwasser expressed. “UFC is a fantastic property and has piqued our interest. Formula One, as well. Given our experience with sports internationally, we know the passion for Formula One, and we recognize its growth and potential in this market.”
With the NFL Draft season approaching, there’s an abundance of smoke screens surrounding WBD. It’s logical for the TNT Sports CEO to seek more live sports, yet the lack of coherence in WBD’s aspirations for its sports division raises questions. Imagine the headlines if Disney’s Jimmy Pitaro and Bob Iger issued entirely contradictory statements regarding ESPN’s approach to sports.
WBD’s live sports portfolio resembles Peter Griffin’s take on the Six Million Dollar Man. There are solid long-term commitments like the NHL and MLB, accompanied by a scattering of March Madness, US Soccer, College Football Playoff games, Mountain West football, and the French Open tennis. Now, with potential UFC and F1 additions, do these properties truly align with a coherent strategy for WBD’s sports future, or are they simply seeking a quick recovery after the NBA split?
It’s reasonable for a company of Warner Bros. Discovery’s stature to take time to recalibrate after losing a significant asset like the NBA. However, the inconsistent messaging dates back to Zaslav’s earlier comments about the NBA and continues to persist. In contrast, ESPN, NBC, Fox, and CBS have clear sports strategies, while The CW is also carving a niche with smaller sports properties.
As Yogi Berra wisely noted, if WBD and TNT Sports are unsure of their direction, they will inevitably end up somewhere unexpected.
