The NBA has moved to dismiss the lawsuit filed by Warner Bros. Discovery over allegations of a breach of contract related to a media rights deal. At the heart of this legal tussle is the NBA's refusal to accept Warner Bros. Discovery's attempt to match an offer made by Amazon for a new media rights package.
In a recent development, the NBA signed an extensive 11-year media rights deal valued at nearly $76 billion. The agreement, which spans from the 2025-26 season through the 2035-36 season, includes partnerships with major players like Disney, NBC, and Amazon Prime Video. This new deal, however, marks the end of a nearly 40-year relationship between the NBA and Turner, a subsidiary of Warner Bros. Discovery.
The Dispute
Warner Bros. Discovery's main contention is that the NBA breached its previous contract by rejecting their offer, which they claimed matched Amazon's proposal for media rights. Warner Bros. Discovery significantly altered Amazon's offer, making extensive revisions that redefined numerous terms and added substantial new content. The NBA noted that Warner Bros. Discovery amended significant portions of Amazon's original offer, revising eight out of 27 sections, redefining 11 terms, striking out nearly 300 words, and adding over 270 new words. Among the contentious points was Amazon's stipulation for an upfront payment of approximately $5.4 billion to be held in escrow, which Warner Bros. Discovery suggested replacing with syndicated letters of credit.
The NBA's legal response, documented in a 28-page motion and other accompanying papers, asserts that Warner Bros. Discovery's amendments constituted a counteroffer rather than a genuine match of Amazon's terms. In the NBA's view, these substantive changes allowed them to legally reject Warner Bros. Discovery's attempt. The league requested the court to dismiss the lawsuit with prejudice, which would prevent Warner Bros. Discovery from filing another suit on the same grounds.
Key Rejections
The NBA stated that they had presented Amazon's offer to Warner Bros. Discovery on July 17, and received what Warner Bros. Discovery claimed was a matching offer five days later. However, on July 24, the NBA rejected this offer, citing multiple discrepancies. According to NBA president of global content and media distribution, Bill Koenig, "The response made by TBS does not qualify as a match."
The NBA emphasized that Warner Bros. Discovery had the option to match a separate, more expensive offer from NBC that included linear TV distribution rights. However, as the NBA elaborated, "TBS chose not to match NBCUniversal's offer, which would have enabled TBS to continue distributing games via its TNT linear cable network." Instead, TBS, a Turner Broadcasting System network, attempted to leverage a less expensive offer from Amazon, "but only after revising it to include traditional distribution rights and making numerous other substantive changes." This move was seen as an attempt to combine Amazon's lower price with the linear television rights, which was cost-effective but legally problematic based on the original terms proposed by Amazon.
The New Deal
Under the new arrangement, Amazon Prime Video will broadcast NBA games on Friday nights, select Saturday afternoons, and host Thursday night doubleheaders following "Thursday Night Football." This deal also secures Amazon exclusive coverage of key stages of the NBA Cup and the NBA League Pass package. Such an agreement signifies a substantial shift in how NBA content will be distributed, focusing increasingly on digital and streaming platforms over traditional cable networks.
TNT Sports, a Warner Bros. Discovery entity, has argued that their approach aimed to benefit fans by providing NBA content through widely distributed platforms including TNT and Max. "Not only is it our contractual right," stated a representative from TNT Sports, "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."
Implications
This legal battle underscores the complexities and high stakes involved in the modern media rights landscape, especially as traditional television companies grapple with the rise of digital streaming giants. The NBA's decisive move to partner with Amazon, Disney, and NBC demonstrates a strategic shift toward embracing the transformative potential of digital media while phasing out long-standing partnerships predicated on traditional cable distribution mechanisms. Warner Bros. Discovery has until September 20 to file its response, which will undoubtedly add another chapter to this high-profile case.
The outcome of this lawsuit could potentially reshape how media rights deals are negotiated and executed in the future, influencing both the legal frameworks and financial strategies of major sports leagues and media companies. As fans and stakeholders await the next developments, the case remains a pivotal example of the evolving interplay between legacy media and the new digital frontier.