In a legal clash that has the sports media world buzzing, the NBA has filed a motion to dismiss a lawsuit brought against it by Warner Bros. Discovery. This lawsuit alleges that the NBA breached its contract by rejecting Warner Bros. Discovery’s attempt to match a lucrative new media rights deal.
Background and Key Allegations
At the heart of this legal skirmish is an 11-year media rights contract worth nearly $76 billion, a deal that significantly reshapes the NBA’s broadcasting landscape. The contract, which covers the 2025-26 season through the 2035-36 season, includes partnerships with major media players Disney, NBC, and Amazon Prime Video. Notably, this new deal marks the end of a nearly 40-year relationship between the NBA and Turner Sports.
Warner Bros. Discovery's allegations hinge on the claim that their matching offer for a new media rights deal was unfairly dismissed by the NBA. The NBA, however, contends that Warner Bros. Discovery, operating under the TBS brand, amended significant portions of Amazon's original offer, rendering their proposition invalid.
Discrepancies and Counteroffers
According to the NBA’s legal response, Warner Bros. Discovery made substantive changes to eight of Amazon's 27 sections, redefined 11 terms, struck out nearly 300 words, and added over 270 new words. One crucial alteration involved the form of upfront payment. While Amazon proposed an escrow account holding approximately $5.4 billion, Warner Bros. Discovery suggested syndicated letters of credit instead.
On July 17, the NBA presented Amazon's offer to Warner Bros. Discovery. Five days later, Warner Bros. Discovery responded, claiming they had successfully matched the offer. Yet, by July 24, the NBA had rejected Warner Bros. Discovery’s response, citing multiple discrepancies in their attempt to match Amazon’s terms.
In its defense, the NBA stated, "Far from accepting each term of Amazon's offer, TBS's revisions constituted a counteroffer that the NBA was free to reject." The league's stance is that Warner Bros. Discovery did not adhere to the exact terms of Amazon’s offer and that the amendments and additional terms fundamentally altered the original proposal.
The NBA’s Stance
Bill Koenig, President of NBA Global Content and Media Distribution, emphasized this point, stating, "The response made by TBS does not qualify as a match." According to Koenig, if TBS wanted linear TV distribution rights, they could have matched a more expensive third-party offer from NBC. However, the attempt to save costs by combining Amazon's lower price with NBC’s linear TV rights was a move that the NBA deemed unacceptable.
Next Steps
This case has significant implications for both parties involved and the broader media landscape. Warner Bros. Discovery has been a longtime partner of the NBA through its Turner Sports network, and this lawsuit signifies a tumultuous end to that long-standing relationship. The company has until September 20 to file its response to the NBA’s motion to dismiss.
The NBA’s new contract with Amazon Prime Video is poised to bring about notable changes in how fans consume NBA content. Amazon Prime Video is set to broadcast games on Friday nights, select Saturday afternoons, and Thursday night doubleheaders post "Thursday Night Football." Additionally, the deal includes exclusive coverage of crucial NBA Cup stages and the NBA League Pass package.
While the future relationship between Warner Bros. Discovery and the NBA remains uncertain, the league's decision to align with new media partners demonstrates a significant shift in its strategy for distributing content. As Koenig remarked, "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."
From Warner Bros. Discovery's perspective, the company maintains that its revised bid was in the best interest of NBA fans, offering the choice and flexibility provided by widely distributed platforms such as TNT and Max. However, the NBA has made it clear that it found the proposed changes unacceptable.
Ultimately, as both sides prepare for the next legal maneuvers, the outcome of this high-stakes dispute will be closely watched by stakeholders across the sports and media industries.