Last week, Turner Broadcasting began laying off 550 workers. It was a move to free up money for more original programming on its various networks such as TBS, TNT and tru TV, but also for sports rights. The biggest sports series on Turner is the NBA and with the company employing 16,000 people worldwide, the cuts have been made all over the place.
Reporters at CNN and other Turner divisions have been feeling the brunt of the cuts. One reporter, Lisa Desjardins actually taped her departure from the CNN Washington bureau.
With Turner paying $445 million annually for the NBA through the 2015-16 season, there’s speculation that the Association is looking to double its rights fees from both Turner and ESPN.
Turner knows it has to keep the NBA so it can keep pace with other networks and raise its subscription fees to cable providers.
So in order to get more cash, the way to do it is to slash payroll and cut some so-called dead weight. As the NBA rights negotiations continue, Turner looks for ways to keep the sport that it has aired dating back to the 1983-84 season.
Employees have to bear the brunt of the cuts and it’s unfortunate they have to lose their jobs, but at the same time, Turner knows that it has to remain competitive with the other networks.
Whether this will work and keep the NBA with TNT will be known when the final contracts are signed.
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