Agreement gives international media rights back to Africa, Asia, Australia, New Zealand and areas in Europe and Latin America not currently covered by Discovery+ or Eurosport
Deals, like records, apparently are meant to be broken — or at least restructured — as the PGA Tour and Warner Bros. Discovery announced a restructured international media rights agreement on Monday.
As first reported by Sports Illustrated, the entities notified their media partners that, beginning in 2023, PGA Tour content will continue to be distributed via Discovery+ or Eurosport, but will return rights to Africa, Asia, Australia, New Zealand and areas in Europe and Latin America not receiving Discovery+ or Eurosport.
While new terms of the restructured deal were not disclosed, the news comes nearly one-third of the way into the 12-year, $2 billion agreement that was announced in 2018. The intent then was to build a direct-to-consumer platform with the launch of GolfTV. Two months ago, though, GolfTV was shuttered.
"Together we agreed restructuring the management of future international rights was a logical step given the changes under the partnership driven by a broader evolution in the media sector and changing consumer consumption habits, as the focus shifts from niche services such as GolfTV to broader and scaled streaming offerings," the PGA Tour said in a statement. "Our main goal was providing zero disruption to the fan experience in 2023, which was accomplished."
On April 8, WarnerMedia and Discovery finalized a merger, and on April 23, Warner Bros. Discovery stock closed at $26. But, according to a Dec. 6 CNBC.com report, CEO David Zaslav “determined the company was a mess.” It was reported that Warner Bros. Discovery’s total debt was about $50, tens of billions more than the company’s market capitalization. The company’s stock closed 2022 at $9.48.
"As consumer behavior changed, so did Warner Bros. Discovery’s own business; focusing more on scaled broad entertainment propositions rather than single sport or 'view and do' products," Warner Bros. Discovery said in a statement. "In an evolving media landscape, we have found that including sport within a broader consumer offer provides greater value to subscribers and their wider household, as well as opening up sports to an even bigger audience."