The legal tug-of-war between the NBA and Warner Bros. Discovery has taken another twist, as the NBA seeks to dismiss the lawsuit filed by Warner Bros. Discovery over a rejected media rights deal. Central to the dispute is Warner Bros. Discovery's claim that the NBA breached their contract by rejecting a supposed matching offer.
The backdrop to this legal skirmish is the NBA's landmark 11-year media rights deal, valued at nearly $76 billion. This new agreement establishes partnerships with Disney, NBC, and Amazon Prime Video, covering the 2025-26 season through the 2035-36 season. One significant consequence was the end of a nearly four-decade relationship between the NBA and Turner.
The Core of the Dispute
The NBA's motion to dismiss Warner Bros. Discovery's lawsuit with prejudice is backed by a comprehensive 28-page document, along with additional supporting materials. The NBA argues that Warner Bros. Discovery amended key elements of Amazon’s initial offer, thereby altering the proposal significantly.
Specifically, Warner Bros. Discovery made substantive revisions to eight of Amazon's 27 sections, redefined 11 terms, removed nearly 300 words, and added over 270 new ones. For instance, while Amazon's deal included an upfront payment requirement of approximately $5.4 billion to be held in an escrow account, Warner Bros. Discovery proposed using syndicated letters of credit instead.
Bill Koenig, the president of NBA global content and media distribution, emphasized that the response made by Warner Bros. Discovery did not qualify as a match, aligning with the NBA’s stance that the changes were material and thus constituted a counteroffer. "Far from accepting each term of Amazon’s offer, TBS’s revisions constituted a counteroffer that the NBA was free to reject," the NBA stated.
Timeline of the Negotiations
The NBA presented Amazon’s offer to Warner Bros. Discovery on July 17, giving them the opportunity to match the terms. Warner Bros. Discovery responded five days later, asserting that they had successfully matched the offer. However, the NBA swiftly rejected this claim on July 24, citing multiple discrepancies in Warner Bros. Discovery's matching attempt.
The NBA maintains that if Warner Bros. Discovery had genuinely wished to continue its contract with linear TV distribution rights, it could have opted for NBCUniversal's offer, despite the higher costs. "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," the NBA explained.
Impact on Broadcasts
The new deal with Amazon Prime Video includes several compelling features for fans. Amazon Prime Video will broadcast NBA games on Friday nights, select Saturday afternoons, and Thursday night doubleheaders following "Thursday Night Football." The partnership also entails exclusive coverage of crucial NBA Cup stages and the NBA League Pass package.
Warner Bros. Discovery’s Position
Warner Bros. Discovery's primary contention revolves around their belief in their contractual right to match any offer, with an eye to providing fans access to NBA content through their platforms like TNT and Max. "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.
As the deadline approaches, Warner Bros. Discovery has until September 20 to file its formal response. The outcome of this legal battle will shape the future landscape of NBA broadcasting, influencing how millions of fans consume their favorite sport. For now, the sports world watches closely as these giants of media and sports navigate this complex legal challenge.