Bob Iger has unexpectedly returned as CEO of Disney two years after his retirement. Iger's return could impact how ESPN bids for sports rights.

While MoffettNathanson’s Michael Nathanson did not speculate on the long-term fate of Disney’s linear TV model, he said Iger’s re-ascension was likely to usher in an era of “deep cost-cutting at ESPN,” one which “should include a review of all the upcoming sports rights.”

Iger is expected to be less interested in spending significant money on low-impact sports, but Sportico reports it is unlikely that ESPN's expected austerity measures will impact extension talks with the NBA. The current deal costs $1.4 billion per year and is due for renewal at the end of the 24-25 season. 

The NBA is expected to secure up to $75 billion combined for its next media rights deals. 

The NBA is seeking a long-term media rights deal with ESPN and Turner having the inside track to continue as its primary partners. 

Turner now falls under the Warner Bros. Discovery umbrella run by CEO David Zaslav.

Zaslav said that the slumping ad market is hurting their bottom line. Zaslav also said they will stay disciplined in their negotiations with the NBA.

“We don’t have to have the NBA,” Zaslav said. 

Zaslav reiterated they would like to do a new deal with the NBA and even mentioned HBO Max as a possible home for streaming games. 

“It has to be a deal for the future. It can’t be a deal for the past,” Zaslav also said.

Turner recently signed Charles Barkley to a 10-year extension though he could leave if the network doesn't keep the NBA.

The NBA is heading toward a new collective bargaining agreement and a significant increase in its next media rights deal, which could lead to an expansion. But it could also lead to existing owners considering selling given the fact the financial health of the league is so sound that it has created an environment where other parties are desperate to buy in despite record valuations. 

"There's starting to be some rumblings of some NBA owners maybe looking to sell," said Brian Windhorst. "That the market is getting ripe for NBA owners to sell.

"One of the reasons is because the Broncos just sold for $4.3 billion. And the Commanders may sell pretty soon here and that's going to smash every record. The Commanders, people are talking about $6 billion potentially. $5 billion to $6 billion, maybe more.

"We just saw Liverpool FC is now for sale it sounds like reportedly. And they're valued at $4 billion and I was reading a report yesterday that they think the owners, the same folks who own the Red Sox, that the owners may be able to get $5 billion for that.

"The value of teams are coming up."

The average NBA franchise multiple is at 8.6 compared to seven before the pandemic. 

"There might be some folks sitting on the sideline sort of wondering 'Should I sell?' and they're going to see these numbers."

The NBA is preparing to sell a package of streaming-only games under its next media rights package with the bidding to likely start at $1 billion per year.

The package is expected to attract the major streaming companies including Amazon and Apple. 

Under the current deal signed in 2014, streaming comes under the league’s own media platforms, ESPN, TNT, and the various regional sports networks (RSNs) showing local games.

One source says Amazon would like an NBA package along with the NFL.

“Amazon is locked and loaded for a shot at the NBA,” said a source.

The NBA could sell a streaming package of 20-40 games during its 19-week regular season.

The NBA is set to come off its nine-year, $24 billion deal with Disney and Turner that pays $2.6 billion per year. With an additional $1 billion in streaming, the league could get close to $7 billion per year in annual rights fees.