The NBA recently filed a motion to dismiss a lawsuit brought by Warner Bros. Discovery, stemming from a contractual dispute over media rights. Warner Bros. Discovery alleged that the NBA breached its contract by rejecting their offer to match a new media rights deal. The NBA, however, contends that Warner Bros. Discovery's matching attempt was significantly altered, thus constituting a counteroffer.
The Conflict
Central to the dispute is an 11-year media rights deal the NBA signed, worth nearly $76 billion, effective from the 2025-26 season through the 2035-36 season. This landmark contract introduces new partnerships with Disney, NBC, and Amazon Prime Video, and ends a nearly four-decade-long relationship between the NBA and Turner Sports. The new agreement means that Amazon Prime Video will broadcast games on Friday nights, select Saturday afternoons, and Thursday night doubleheaders post "Thursday Night Football". Additionally, Amazon will provide exclusive coverage of key NBA Cup stages and will include the NBA League Pass package.
Warner Bros. Discovery, which owns TBS, claimed to have matched Amazon's offer upon which the NBA rejected their proposal, citing substantial discrepancies and modifications. The NBA’s legal response, encapsulated in a comprehensive 28-page motion, sheds light on the specifics of these alterations.
NBA's Position
According to the NBA, Warner Bros. Discovery amended significant elements of Amazon's original offer, making substantive changes to eight out of 27 sections, redefining 11 terms, deleting nearly 300 words, and inserting over 270 new words. One of the pivotal differences involved the upfront payment structure. Amazon's offer necessitated an upfront payment of roughly $5.4 billion held in an escrow account, whereas Warner Bros. Discovery suggested an alternative by proposing syndicated letters of credit instead. These amendments, the NBA argued, rendered their response as a counteroffer rather than a valid match.
"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 stated. "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 maintains its stance that Warner Bros. Discovery's actions do not qualify as a legitimate match. "Far from accepting each term of Amazon's offer, TBS's revisions constituted a counteroffer that the NBA was free to reject," the NBA added, underscoring the contention that if Warner Bros. Discovery had sought linear TV distribution rights, they could have matched the separate, more costly third-party offer from NBC. However, TBS elected not to do so, allegedly attempting to curtail expenses by intertwining Amazon's lower-priced deal with the linear television rights granted to NBC.
Warner Bros. Discovery's Response
Bill Koenig, president of NBA global content and media distribution, articulated the NBA's perspective succinctly: "The response made by TBS does not qualify as a match." On the other hand, TNT Sports, part of Warner Bros. Discovery, defended their proposal. "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," they asserted.
Next Steps
With Warner Bros. Discovery given until September 20 to file their response, the sports media landscape watches keenly how this legal battle unfolds. As the NBA moves forward with its new media rights partners, the implications of this litigation could resonate broadly, affecting future negotiations and the complex interplay between legacy broadcasters and emerging digital platforms.
Fans and stakeholders alike will be observing closely, recognizing that this case could well set precedents for how media rights deals are negotiated and disputed in today's rapidly evolving sports broadcasting environment. As the NBA seeks a resolution, its focus remains on delivering unparalleled basketball content to its global audience, regardless of the platform.