In an effort to enhance its sports programming, Warner Bros. Discovery has entered a five-year sublicensing agreement with Disney's ESPN to broadcast select College Football Playoff (CFP) games. This agreement represents a pivotal step in Warner Bros. Discovery’s expansion into live sports broadcasting.

According to the deal, Warner Bros. Discovery’s TNT network will air two first-round CFP games this year and next year. Starting in 2026, TNT will also broadcast two additional quarterfinal games. Moreover, Disney retains the option to sublicense a semifinal game to Warner Bros. Discovery starting from the third year of the contract. Despite this sublicensing arrangement, Disney will continue to exclusively broadcast the championship game throughout the contract's term, which extends through 2031. Disney is currently paying approximately $1.3 billion annually for the rights to the entire College Football Playoff series.

The new 12-team College Football Playoff format, set to debut in December, will replace the existing four-team tournament that has been in place since 2014. Under the new structure, the top four teams will receive byes, while teams ranked 5 through 12 will compete in first-round games hosted at the home stadium of the higher-seeded team.

ESPN will be responsible for the production of these games, utilizing primarily ESPN talent for broadcasts that will be branded under the TNT name. Sources familiar with the matter indicate that Warner Bros. Discovery will pay ESPN an average of "hundreds of millions" per year for the broadcast rights over the five-year period. The payments are structured to be lower in the first two years, reflecting the smaller number of games broadcast initially.

Bill Hancock, executive director of the College Football Playoff, expressed excitement about the partnership, stating, "It is exciting to add TNT Sports, another highly respected broadcaster, to the College Football Playoff family. Sports fans across the country are intimately familiar with their work across a wide variety of sports properties over the past two decades, and we look forward to seeing what new and innovative ideas they bring to the promotion and delivery of these games."

This year's first round of the CFP is scheduled for December 20 and 21.

Warner Bros. Discovery plans to include these games in its Max sports tier, further bolstering its live sports offerings. The company is also engaged in complex negotiations with the National Basketball Association (NBA) for a package of live games. TNT, a long-standing partner of the NBA for nearly 40 years, faces competition from Comcast-owned NBCUniversal and Amazon, which are also vying for NBA broadcasting rights.

College football remains one of the most popular television programs in the United States. Last year's semifinals, featuring Michigan's victory over Alabama, drew an average audience of 27.2 million viewers, making it the most-watched non-NFL sporting event since 2018.

Even if Warner Bros. Discovery loses the NBA rights, the company will continue to broadcast CFP and NBA games until mid-2025. Additionally, it will feature several weeks of NCAA men’s basketball March Madness tournament games, men’s and women’s soccer, NASCAR, Major League Baseball, and the National Hockey League. This extensive sports lineup is expected to strengthen Warner Bros. Discovery’s position in upcoming carriage renewal negotiations for TNT and its other cable networks.

Additionally, ESPN sublicensing CFP games to Warner Bros. Discovery ensures that all CFP games will be available on Venu Sports, the new sports streaming service being developed collaboratively by Disney, Fox, and Warner Bros. Discovery. Venu Sports is anticipated to launch in the fall, offering a comprehensive platform for sports enthusiasts.

This sublicensing deal highlights Warner Bros. Discovery’s commitment to expanding its sports programming and provides ESPN with a significant financial return while maintaining its dominant position in sports broadcasting.