The legal tussle surrounding the NBA's recent media rights deal is heating up as the league seeks to dismiss a lawsuit filed by Warner Bros. Discovery. At the heart of the issue lies Warner Bros. Discovery's claim that the NBA breached its contract by not accepting their matching offer for a new media rights agreement. This dispute comes in the wake of the NBA securing a monumental 11-year media rights deal worth nearly $76 billion.
The Controversy
Warner Bros. Discovery, parent company of TBS, contends that they successfully matched Amazon's offer for the coveted media rights. However, the league has rejected this assertion, leading to the current legal battle. The NBA's new contract, which spans from the 2025-26 season through the 2035-36 season, involves high-profile partnerships with Disney, NBC, and Amazon Prime Video. This agreement marks the end of a nearly 40-year relationship between the NBA and Turner Sports.
The NBA has responded to Warner Bros. Discovery's lawsuit with a detailed 28-page motion, requesting dismissal with prejudice. According to the league's filing, significant modifications by Warner Bros. Discovery invalidate their matching claim. The NBA stated that Warner Bros. Discovery altered substantial portions of Amazon's original offer, including substantive revisions to eight of the 27 sections, redefining 11 terms, striking out nearly 300 words, and inserting over 270 new words.
The Financial Stakes
One of the key sticking points is Amazon's upfront payment requirement of approximately $5.4 billion, which was to be held in an escrow account. Warner Bros. Discovery proposed using syndicated letters of credit in lieu of the escrow account, a significant divergence from the original terms. The NBA cited these discrepancies as pivotal in their decision to reject Warner Bros. Discovery's claim.
In a statement, the NBA pointed out, "TBS chose not to match NBCUniversal's offer, which would have enabled TBS to continue distributing games via its TNT linear cable network. Instead, TBS purported to match the less-expensive Amazon offer, but only after revising it to include traditional distribution rights and making numerous other substantive changes."
Amazon's Broadcast Plans
Under Amazon's agreement with the NBA, the tech giant's Prime Video platform will broadcast games on Friday nights, select Saturday afternoons, and Thursday night doubleheaders, following "Thursday Night Football." This deal also includes exclusive coverage of significant NBA Cup stages and the NBA League Pass package, further expanding Amazon's footprint in the sports broadcasting realm.
Bill Koenig, president of NBA global content and media distribution, asserted, "Far from accepting each term of Amazon's offer, TBS's revisions constituted a counteroffer that the NBA was free to reject. If TBS wanted linear TV distribution rights, it could have matched a separate more expensive third-party offer from NBC, but TBS elected not to do so, attempting instead to save billions of dollars by combining Amazon's lower price with the linear television rights granted to NBC." He concluded emphatically, "The response made by TBS does not qualify as a match."
TNT's Response
Despite the NBA's rejection, TNT Sports, part of Warner Bros. Discovery, maintains that their matching attempt was legitimate and in the best interest of viewers. A representative from TNT Sports commented, "Not only is it our contractual right, but it is in the best interest of the fans who want to continue to enjoy our industry-leading NBA content with the choice and flexibility we offer them through our widely distributed platforms including TNT and Max."
As the legal proceedings unfold, Warner Bros. Discovery has until September 20 to file its response. The outcome of this case could have significant implications for the future landscape of sports media rights, potentially reshaping how fans access their favorite games and content.