NBA Seeks to Dismiss Warner Bros. Discovery Lawsuit Over Media Rights Deal
The NBA has filed a motion seeking the dismissal of a lawsuit initiated by Warner Bros. Discovery, in which the entertainment conglomerate claims the league breached its contract. The core of the dispute lies in Warner Bros. Discovery's assertion that the NBA unjustly declined their matching offer for a new media rights deal.
Background of Media Rights Deal
The NBA recently secured a colossal 11-year media rights agreement valued at nearly $76 billion, spanning several high-profile partnerships, including those with Disney, NBC, and Amazon Prime Video. This landmark contract, covering the 2025-26 through the 2035-36 seasons, marks the end of an almost 40-year collaboration between the NBA and Turner Sports.
Warner Bros. Discovery's complaint centers on their belief that their matching offer should have been accepted by the NBA. However, the NBA countered this claim, presenting detailed reasons within a 28-page motion and accompanying documents, for why Warner Bros. Discovery's offer was untenable.
Details of the Dispute
According to the NBA, Warner Bros. Discovery significantly altered Amazon's original offer in their attempt to match it. Specific allegations include substantive changes to eight of Amazon's 27 sections, redefinition of 11 terms, the removal of almost 300 words, and the addition of over 270 new words. One of the crucial sticking points was Amazon's requirement for an upfront payment of approximately $5.4 billion, to be held in an escrow account—a term Warner Bros. Discovery suggested replacing with syndicated letters of credit.
The NBA delivered Amazon's offer to Warner Bros. Discovery on July 17, but within five days, Warner Bros. Discovery responded with what they believed to be a successful match. However, the NBA rejected this claim on July 24, citing multiple discrepancies in their matching attempt.
Broadcast Details and Content Distribution
Under the new deal, Amazon Prime Video will broadcast NBA games on Friday nights, select Saturday afternoons, and engage audiences with Thursday night doubleheaders following "Thursday Night Football." Additionally, Amazon's agreement includes exclusive coverage of significant stages of the NBA Cup and the NBA League Pass package.
Bill Koenig, president of NBA Global Content and Media Distribution, stated, "The response made by TBS does not qualify as a match." He further detailed in the league's documents that Warner Bros. Discovery's attempt to combine Amazon's lower financial offer with linear television rights granted to NBC did not meet the criteria established for matching offers.
Industry Reactions and Implications
An official NBA statement elaborated, "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."
The NBA's response underscores that "Far from accepting each term of Amazon's offer, TBS's revisions constituted a counteroffer that the NBA was free to reject." The league has requested the court to dismiss the lawsuit with prejudice, effectively preventing Warner Bros. Discovery from re-filing the case in the future.
On the other side, a representative from TNT Sports argued, "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 of now, Warner Bros. Discovery has until September 20 to file its formal response to the NBA's motion. The outcome of this legal battle could have significant implications for future media rights negotiations and the landscape of sports broadcasting.
As the legal proceedings unfold, the industry watches closely, understanding that such high-stakes negotiations and potential litigation could reshape how major sports leagues negotiate and enforce media rights contracts in the years to come.