The NBA has recently filed a motion to dismiss the lawsuit brought against it by Warner Bros. Discovery. The lawsuit stems from allegations by Warner Bros. Discovery that the NBA breached its contract by rejecting their matching offer for a new media rights deal.
The Dispute Over Media Rights
At the heart of the conflict is the NBA's new 11-year media rights deal, valued at nearly $76 billion. This new contract, effective from the 2025-26 season through the 2035-36 season, includes significant partnerships with Disney, NBC, and Amazon Prime Video. Notably, this marks the end of a nearly 40-year partnership between the NBA and Turner.
Warner Bros. Discovery, which owns Turner Broadcasting System (TBS), claims that the NBA unjustly rejected their attempt to match Amazon's offer for the media rights. The NBA's legal response, documented in a 28-page motion and accompanying documents, requests dismissal of the lawsuit with prejudice.
Details of the Offer and Counteroffers
According to the NBA, Warner Bros. Discovery adjusted significant parts of Amazon's proposal. Warner Bros. Discovery made substantive revisions to eight of Amazon's 27 sections, redefining 11 terms, striking out nearly 300 words, and adding over 270 new words. One of the critical points of contention was Amazon’s upfront payment requirement of approximately $5.4 billion held in an escrow account. Warner Bros. Discovery suggested syndicated letters of credit instead of meeting the escrow requirement.
On July 17, the NBA presented Amazon's offer to Warner Bros. Discovery. Five days later, Warner Bros. Discovery submitted their response, claiming a successful match. However, on July 24, the NBA rejected this response, citing multiple discrepancies in Warner Bros. Discovery’s matching attempt.
Statements and Reactions
The NBA's stance was made clear: "TBS chose not to match NBCUniversal's offer, which would have enabled TBS to continue distributing games via its TNT linear cable network," the NBA explained. "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." The NBA further elaborated, "Far from accepting each term of Amazon's offer, TBS's revisions constituted a counteroffer that the NBA was free to reject."
The choice available to TBS was to match either Amazon's or NBC's offer fully. "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," stated the NBA.
Bill Koenig, president of NBA global content and media distribution, added, "The response made by TBS does not qualify as a match."
On the other hand, Warner Bros. Discovery has defended its position. TNT Sports, an entity under Warner Bros. Discovery, expressed its confidence in its contractual rights and emphasized its commitment to the fans. "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," stated TNT Sports.
Looking Forward
As the lawsuit progresses, Warner Bros. Discovery has until September 20 to file its response. In the meantime, Amazon Prime Video is gearing up for its role under the new deal, set to broadcast games on Friday nights, select Saturday afternoons, and Thursday night doubleheaders following "Thursday Night Football." Additionally, Amazon’s agreement includes exclusive coverage of crucial NBA Cup stages and the NBA League Pass package.
Given the stakes involved, the outcome of this legal battle could have significant implications for how media rights in professional sports are negotiated and enforced in the future. For now, all eyes remain on Warner Bros. Discovery's next move and the court's eventual ruling.