NBA Seeks Dismissal of Warner Bros. Discovery Lawsuit Over Media Rights Deal
In a legal tug-of-war that underscores the high-stakes world of sports broadcasting, the NBA has filed a motion to dismiss a lawsuit initiated by Warner Bros. Discovery. The suit claims that the NBA breached its contract by not accepting a matching offer from Warner Bros. Discovery for new media rights.
According to the lawsuit, Warner Bros. Discovery believes it had successfully matched Amazon's offer for a new media rights deal. However, the NBA contends otherwise. Central to the dispute is an 11-year media rights arrangement worth nearly $76 billion that the NBA has secured with Disney, NBC, and Amazon Prime Video. This new contract, which takes effect from the 2025-26 season through the 2035-36 season, marks the end of the NBA's four-decade relationship with Turner, Warner Bros. Discovery's network.
The NBA's motion, spanning 28 pages, argues that Warner Bros. Discovery did not accept Amazon's offer as it stood but instead made considerable amendments. Specifically, Warner Bros. Discovery altered substantial parts of Amazon's proposal, with significant changes made to eight out of 27 sections, redefining 11 terms, striking nearly 300 words, and adding over 270 new ones. Instead of adhering to Amazon's requirement of an upfront payment of about $5.4 billion in an escrow account, Warner Bros. Discovery proposed using syndicated letters of credit.
The timeline of events reveals the friction between the parties. On July 17, the NBA presented Amazon's offer to Warner Bros. Discovery. Five days later, Warner Bros. Discovery responded, asserting it had successfully matched the offer. However, on July 24, the NBA rejected this claim, pointing out numerous discrepancies in the matching attempt.
"TBS chose not to match NBCUniversal's offer, which would have enabled TBS to continue distributing games via its TNT linear cable network," stated the NBA. "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 argued that these revisions turned Warner Bros. Discovery's response into a counteroffer, which the league was entitled to reject. "Far from accepting each term of Amazon's offer, TBS's revisions constituted a counteroffer that the NBA was free to reject," the NBA asserted in its motion. The league emphasized that Warner Bros. Discovery could have chosen to match a more expensive offer from NBC if it desired linear TV distribution rights, but it opted not to do so in an effort to save billions of dollars by combining Amazon's lower-priced bid with the TV rights granted to NBC.
Bill Koenig, president of NBA global content and media distribution, underscored the league's position, stating, "The response made by TBS does not qualify as a match."
In a statement, TNT Sports defended its actions, highlighting the advantages provided to fans through their current platforms. "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."
Amazon Prime Video's deal includes streaming live NBA games on Friday nights, select Saturday afternoons, and Thursday night doubleheaders following "Thursday Night Football." The agreement also features exclusive coverage of crucial NBA Cup stages and the NBA League Pass package, offering fans enhanced access to their favorite teams and matches.
This high-profile legal wrangling will be closely watched by the industry, with Warner Bros. Discovery expected to file its response by September 20. As both entities navigate through this legal labyrinth, the outcome will likely have significant implications for future media rights negotiations and the ever-evolving landscape of sports broadcasting.