NBA Seeks to Dismiss Warner Bros. Discovery Lawsuit Over Media Rights Deal
The NBA has submitted a motion to dismiss the lawsuit filed by Warner Bros. Discovery, which claims that the league breached its contract by rejecting their matching offer for a new media rights agreement. This legal tussle emerges against the backdrop of the NBA's monumental 11-year media rights deal, valued at nearly $76 billion, which brings in partnerships with Disney, NBC, and Amazon Prime Video.The freshly inked contract, which spans from the 2025-26 season to the 2035-36 season, signals the end of an almost 40-year association between the NBA and Turner Sports. Turner Sports, which operated under Warner Bros. Discovery's TBS network, had a longstanding relationship with the NBA, primarily broadcasting games on TNT. The NBA’s legal response to the suit consists of a 28-page motion, supported by additional documents, and calls for a dismissal with prejudice.
The Contention
The crux of Warner Bros. Discovery’s allegation is that the NBA unfairly dismissed their matching offer for the new media rights, accusing the league of breaching their contract. The NBA, however, contends that Warner Bros. Discovery substantially altered Amazon’s proposal in their attempt to match it.
In their response, the NBA highlighted that Warner Bros. Discovery made substantive revisions to eight of Amazon's 27 sections, redefined 11 terms, excised close to 300 words, and introduced over 270 new words. Notably, Amazon's proposition included an upfront payment requirement of around $5.4 billion to be held in an escrow account, a condition Warner Bros. Discovery proposed replacing with syndicated letters of credit.
The Timeline
The dispute's timeline is crucial. The NBA presented Amazon's offer to Warner Bros. Discovery on July 17. Five days later, Warner Bros. Discovery conveyed their matching claim, which the NBA subsequently rejected on July 24, citing multiple discrepancies in Warner Bros. Discovery’s revised offer.
A significant point of contention was Warner Bros. Discovery’s choice not to match NBCUniversal’s offer, which would have allowed TBS to continue distributing games via its TNT linear cable network. Instead, Warner Bros. Discovery opted to match the less expensive Amazon offer but only after revising it to include traditional distribution rights, among other substantive changes.
"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. "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."
Legal Arguments
The NBA’s legal stance is firm. The league characterized Warner Bros. Discovery’s revisions as a counteroffer, arguing that they were free to reject it. "Far from accepting each term of Amazon's offer, TBS's revisions constituted a counteroffer that the NBA was free to reject," the NBA asserted in their motion. Moreover, Bill Koenig, the president of NBA global content and media distribution, echoed this sentiment, stating, "The response made by TBS does not qualify as a match."
The NBA also underscored that if Warner Bros. Discovery desired linear TV distribution rights, they had the opportunity to match a separate, more expensive third-party offer from NBC but chose not to do so. "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 noted.
Broadcasting Plans
As part of the new media rights deal, Amazon Prime Video will provide NBA fans with extensive coverage. The platform is set to broadcast games on Friday nights, select Saturday afternoons, and Thursday night doubleheaders after "Thursday Night Football." Additionally, Amazon’s package includes exclusive coverage of critical NBA Cup stages and the NBA League Pass.
Next Steps
Warner Bros. Discovery has until September 20 to file its response, setting the stage for a potentially protracted legal battle. Meanwhile, NBA fans are on the cusp of experiencing a new era in basketball broadcasting, marked by innovative partnerships and expanded access to games. TNT Sports, representing part of the Warner Bros. Discovery media empire, remains adamant about their intentions. "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 declared.
As this legal confrontation unfolds, it underscores the high-stakes nature of sports media rights deals and the significant shifts taking place within the industry. Both parties remain entrenched in their positions, with the ultimate resolution likely to have lasting implications for the future of NBA broadcasting.