The National Basketball Association (NBA) has moved to dismiss a lawsuit filed against it by Warner Bros. Discovery, intensifying a legal dispute over a new media rights deal that saw the NBA securing partnerships worth nearly $76 billion. The long-term agreement, covering the 2025-26 season through the 2035-36 season, signifies a seismic shift in the media landscape, partnering the league with Disney, NBC, and Amazon Prime Video, and ending a nearly 40-year relationship with Turner Broadcasting System (TBS).
Warner Bros. Discovery’s Allegations
Warner Bros. Discovery alleged that the NBA breached its contract by rejecting their matching offer for a new media rights deal. TBS, a subsidiary of Warner Bros. Discovery, had a longstanding partnership with the NBA through its TNT linear cable network. However, the NBA's new deal leaves TBS out of the equation, prompting the company to take legal action.
According to the NBA, Warner Bros. Discovery amended significant portions of Amazon's matching offer. Specifically, Warner Bros. Discovery made revisions to eight of Amazon's 27 sections, redefined 11 terms, struck out almost 300 words, and added over 270 new words. The NBA claimed these changes constituted a counteroffer rather than a match.
The NBA’s Legal Stance
In its legal response, which included a 28-page motion and accompanying documents, the NBA requested the dismissal of the lawsuit with prejudice, arguing that Warner Bros. Discovery's adjustments to Amazon's offer invalidated their matching attempt. "Far from accepting each term of Amazon's offer, TBS's revisions constituted a counteroffer that the NBA was free to reject," the league stated in its filing.
The NBA emphasized that TBS could have opted to match NBCUniversal's offer, which included continuing distribution via its TNT cable network, but chose not to do so. "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 explained.
Amazon’s Offer and Warner Bros. Discovery’s Response
Amazon had offered an upfront payment of approximately $5.4 billion held in an escrow account. In contrast, Warner Bros. Discovery suggested utilizing syndicated letters of credit instead of the escrow requirement. The NBA presented Amazon's offer to Warner Bros. Discovery on July 17, and five days later, Warner Bros. Discovery responded, claiming to have successfully matched the offer. On July 24, the NBA rejected this response, citing various discrepancies in Warner Bros. Discovery’s matching attempt.
Bill Koenig, President of NBA global content and media distribution, remarked, "The response made by TBS does not qualify as a match." He added that if TBS desired linear TV distribution rights, it should have matched a more expensive third-party offer from NBC. "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," Koenig noted.
Implications of the New Media Rights Deal
The NBA's new deal authorizes Amazon Prime Video to broadcast games on Friday nights, select Saturday afternoons, and Thursday night doubleheaders following "Thursday Night Football." Furthermore, Amazon will provide exclusive coverage of crucial NBA Cup stages and the NBA League Pass package, enhancing their sports streaming portfolio.
This landmark deal underscores the league's commitment to reaching fans across contemporary digital platforms while maintaining traditional broadcasting channels. However, it has also led to complex legal entanglements, as exemplified by the ongoing dispute with Warner Bros. Discovery.
Warner Bros. Discovery has until September 20 to file its response, setting the stage for what could be a prolonged legal battle over the intricacies of media rights contracts and competitive bid processes. Meanwhile, fans can look forward to more diverse viewing options in the coming years as the NBA's new media partners begin to roll out their extensive coverage plans.