The National Basketball Association (NBA) has formally requested the dismissal of a lawsuit filed by Warner Bros. Discovery, escalating a high-stakes legal battle over a new media rights deal. The motion comes after Warner Bros. Discovery alleged that the NBA breached its contract by rejecting their matching offer for a substantial new media rights deal.
The Dispute
The crux of Warner Bros. Discovery's lawsuit lies in its claim that the NBA wrongfully dismissed their attempt to match an offer from Amazon for the NBA's new 11-year media rights agreement, a deal valued at nearly $76 billion and spanning from the 2025-26 season through the 2035-36 season. This new contract significantly reshapes the NBA’s broadcast landscape, forging new partnerships with Disney, NBC, and Amazon Prime Video while ending a nearly 40-year relationship with Turner.
On the other side, the NBA argues that Warner Bros. Discovery's attempt to match Amazon's offer was fundamentally flawed. According to a 28-page motion and supporting documents submitted to the court, the NBA contends that Warner Bros. Discovery made extensive modifications to the original Amazon offer, rendering it a counteroffer rather than a true match.
The NBA's Stance
The NBA’s legal argument is built around specific alterations made by Warner Bros. Discovery to Amazon's terms. The league claims that Warner Bros. Discovery amended significant portions of Amazon’s offer, involving substantive revisions to eight out of twenty-seven sections, redefinitions of eleven terms, striking out nearly 300 words, and adding over 270 new terms. The NBA asserts that these changes disqualify Warner Bros. Discovery’s offer as a match.
Amazon’s original proposal included an upfront payment requirement of approximately $5.4 billion to be held in an escrow account. In contrast, Warner Bros. Discovery suggested using syndicated letters of credit instead. This deviation, among other discrepancies, formed the basis of the NBA's rejection.
The Timeline
The sequence of events leading to the rejection unfolded rapidly. The NBA presented Amazon's offer to Warner Bros. Discovery on July 17. Warner Bros. Discovery responded within five days, claiming they had successfully matched Amazon’s offer. However, on July 24, the NBA rejected their response, citing multiple discrepancies in the attempt to match the terms.
Exclusive Rights and Coverage
A key detail in this reshuffled media landscape is Amazon Prime Video’s scheduled broadcast of NBA games. The agreement includes exclusive rights to Friday night games, select Saturday afternoon matchups, and post "Thursday Night Football" doubleheaders on Thursday nights. Importantly, Amazon's deal also encompasses exclusive coverage of pivotal NBA Cup stages and the NBA League Pass package.
Turner's Response
Despite the NBA’s dismissal, Turner remains resolute. TNT Sports emphasized the importance of their platforms, including TNT and the streaming service Max, in delivering NBA content with flexibility and choice for fans. "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 stated.
Bill Koenig, president of NBA global content and media distribution, underlined the league’s position, stating, "The response made by TBS does not qualify as a match." The NBA further reinforced this position by suggesting that if Warner Bros. Discovery, through its TBS subsidiary, wanted linear TV distribution rights, it could have matched a more expensive offer from NBCUniversal. "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 noted. "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."
Awaiting the Next Move
With Warner Bros. Discovery required to file their response by September 20, the legal and commercial ramifications of this dispute remain significant. The outcome stands to potentially reshape the broadcast scenarios and financial dynamics related to NBA content distribution. As both titans of media and sports fortify their positions, the implications of this legal battle will be closely scrutinized by stakeholders across the industry.