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.