• Loading stock data...
Thursday, July 3, 2025

Warner Bros. Discovery Cash Woes Could Hit Sports Rights

  • Filing details projected hit of $300 million to $500 million in adjusted earnings from strikes
  • Company seeking a renewal of NBA rights, but on very different terms than current deal
An NBA on TNT camera at a basketball game.
Ron Chenoy-USA TODAY Sports

The ongoing Hollywood writers’ and actors’ strikes have already dealt a significant financial blow to Warner Bros. Discovery — and now could ultimately impact the company’s ability to acquire additional sports rights.

On Tuesday, the parent of networks such as TBS and TNT said in a filing with the U.S. Securities & Exchange Commission that the tandem Hollywood strikes — the first such paired actions since 1960 — have negatively impacted its projected full-year adjusted earnings by about $300 million to $500 million. 

“While WBD is hopeful that these strikes will be resolved soon, it cannot predict when the strikes will ultimately end,” the company said. “With both guilds still on strike today, the company now assumes the financial impact to WBD of these strikes will persist through the end of 2023.”

It is already a delicate period for WBD. Having gone through multiple waves of layoffs over the past 17 months, the company is now seeking a new NBA rights deal to succeed the current one expiring in 2025, but with changes to reflect the transforming media landscape.

WBD officials have downplayed the potential impact on sports, and other major programmers face similar challenges due to the strikes. But some analysts have still conveyed concern regarding the company’s overall situation, in part due to its $47.8 billion in gross debt.

“The issue facing Warner Bros. is a scenario where the networks segment remains in decline and the [direct-to-consumer] segment collapses due to no original [entertainment] content for months,” said Stone Fox Capital. “At the same time, Netflix, Amazon, and Apple can all afford to absorb any losses and continue investing when the strikes end.”

WBD CEO David Zaslav will appear Wednesday at a Goldman Sachs investor conference in San Francisco — along with top executives from Charter, T-Mobile, Verizon, Paramount, and Comcast, among others — and is expected to discuss the strikes and their financial impact.

Meanwhile, WBD is preparing a formal announcement of its long-awaited sports tier for Max, projected to debut around the start of the MLB playoffs next month. 

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

exclusive

WNBA Players Reject League’s First CBA Offer

Players felt the initial proposal wasn’t “entirely responsive” to their request.

NHL to Rejoin Olympic Ice in Milan—and NBC Set to Cash In

NHL players last competed in the Olympics in 2014.

Commanders’ $3.8B Stadium Deal in Jeopardy? Mayor Sounds the Alarm

Political tensions rise about delays in stadium funding approval.

Featured Today

Geoffrey Esper Can’t Catch a Break at Nathan’s Hot Dog Eating Contest

“Hot dogs is not one of my favorite competitions of the year.”
June 29, 2025

The Battle Over Wimbledon’s Ambitious Expansion Plan

A classic NIMBY standoff on one of the most hallowed grounds in sports.
Seattle Rough & Tumble
June 28, 2025

Women’s Sports Bars Are on the Rise. Survival Isn’t Guaranteed

Some women’s sports bars are cashing in. Others are clawing for funding.
June 27, 2025

Shitposters Have Taken the Reins of Pro Sports’ Official Voices

Meet the social media pros turning sports teams into internet trolls.

Paramount Settles Trump Suit Ahead of NFL Season, Skydance Merger

The deal likely allows the much larger Skydance merger deal to proceed.
June 24, 2025

Fever vs. Aces Draws 5th-Largest TV Audience of 2025 WNBA Season

ESPN will carry seven more Indiana Fever games this year.
Leo Messi
June 27, 2025

TNT, Club World Cup Ride Messi to Surprisingly Solid Debut Ratings

TNT Sports carries about a third of matches in the U.S.
Sponsored

Hottest Matchups Following NFL Schedule Release

The NFL released the 2025 regular-season schedule, and anticipation is already building in the ticket marketplace with four months to go.
June 23, 2025

NBA Finals Game 7 Is Most-Watched Since 2019, but Series Drops 9%

Game 7 drew 16.35 million viewers, the most-watched NBA game since 2019.
June 19, 2025

Pacers Force Game 7, Could Spark Big Ratings Boost for NBA Finals

Game 7 could boost NBA Finals ratings after a slow start this year.
June 17, 2025

Stanley Cup Final Delivers Drama but Struggles for Eyeballs in U.S.

U.S. viewership fell while Canadian audiences for the event rose slightly.
June 17, 2025

Streaming Tops Linear for First Time, Sports Still Key to TV’s Resilience

Streaming hits another critical milestone in an accelerating media transition.