The NBA has moved to dismiss a lawsuit filed by Warner Bros. Discovery, escalating a legal feud over a rejected media rights deal. This development follows the NBA's groundbreaking 11-year media rights contract valued at nearly $76 billion, with prominent partnerships including Disney, NBC, and Amazon Prime Video. The deal, set to commence with the 2025-26 season and run through the 2035-36 season, signals the end of the NBA's nearly 40-year association with Turner Broadcasting System (TBS).
Background
Warner Bros. Discovery claims that the NBA breached its contract by refusing to accept their matching offer for the new media rights deal. The legal skirmish rests on whether TBS’s attempt to match Amazon's offer constituted a valid match. Bill Koenig, president of NBA global content and media distribution, emphasized that TBS did not meet the criteria. "The response made by TBS does not qualify as a match," Koenig stated.
The NBA’s Legal Stand
The NBA’s legal response, detailed in a 28-page motion and accompanying documents, argues for the dismissal of the lawsuit with prejudice. According to the NBA, Warner Bros. Discovery significantly altered Amazon's proposed terms, undermining their attempt to match. Specifically, TBS revised eight of Amazon's 27 sections, redefined 11 terms, struck out nearly 300 words, and added over 270 new words.
This is not merely academic but essential to the core of the dispute. For example, the original Amazon proposition included an upfront payment requirement of approximately $5.4 billion, held in an escrow account. Warner Bros. Discovery, in its revised offer, suggested syndicated letters of credit instead of the escrow requirement.
"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. They further clarified, "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."
Deadline and Next Steps
Warner Bros. Discovery faces a looming deadline of September 20 to file its response. This timeline underscores the urgency and stakes involved in the dispute. The NBA contends that the revisions made by TBS transformed their offer into a counteroffer and not 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," noted the NBA in their motion. "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."
Impact of the New Deal
Under the new deal, Amazon Prime Video will significantly expand its coverage of NBA games. Fans can look forward to broadcasts on Friday nights, select Saturday afternoons, and Thursday night doubleheaders, complementing Amazon's existing sports portfolio, notably "Thursday Night Football." Furthermore, Amazon gains exclusive coverage of pivotal stages of the NBA Cup and the coveted NBA League Pass package.
This shift represents a seismic change in how NBA content will be consumed. The league's decision to spurn TBS in favor of Amazon, NBC, and Disney reflects the evolving dynamics of sports media distribution.
Warner Bros. Discovery’s Position
Warner Bros. Discovery is poised to defend its position vigorously. Representatives from TNT Sports, part of the Warner Bros. Discovery umbrella, argue that their proposed distribution strategy aligns with fans' interests. "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 a TNT Sports representative.
As this legal drama unfolds, both sides stand firm on their interpretation of what constitutes a valid match under the terms of their contract. The outcome will undoubtedly shape the future landscape of NBA broadcasting for years to come.