The National Basketball Association (NBA) is urging the court to dismiss a lawsuit filed by Warner Bros. Discovery, which claims a breach of contract due to the NBA’s rejection of its matching offer for a new media rights deal. Warner Bros. Discovery, known for its network TBS, alleges that their match was wrongfully denied, sparking a contentious legal battle that underscores the fierce competition for broadcasting rights in the sports industry.
The Dispute
At the heart of the dispute is an 11-year media rights agreement recently secured by the NBA, valued at nearly $76 billion, commencing with the 2025-26 season and extending through the 2035-36 season. This landmark deal includes partnerships with entertainment giants Disney, NBC, and Amazon Prime Video, effectively ending a nearly 40-year collaboration between the NBA and Turner Sports.
Warner Bros. Discovery claims that its matching attempt was valid and compliant with contractual stipulations. However, the NBA refutes this, maintaining that the alterations made by Warner Bros. Discovery to Amazon's original terms constituted significant deviations rather than a legitimate match.
Alterations and Counteroffers
According to the NBA, Warner Bros. Discovery amended critical elements of Amazon's offer, which comprised an upfront payment requirement amounting to approximately $5.4 billion held in escrow. Warner Bros. Discovery, instead, proposed using syndicated letters of credit, deviating from the stipulated terms. The NBA's response addresses these discrepancies in a detailed 28-page motion, asserting that the modifications translated Warner Bros. Discovery’s response into a counteroffer.
"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 stated. "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 motion elaborates that far from accepting each term of Amazon's offer, TBS's changes were extensive. Warner Bros. Discovery made substantive revisions to eight out of 27 sections, redefined 11 terms, struck out nearly 300 words, and introduced over 270 new words.
"Far from accepting each term of Amazon's offer, TBS's revisions constituted a counteroffer that the NBA was free to reject," the NBA's motion read. The league’s stance is that if TBS desired linear TV distribution rights, it should have matched a more costly offer from NBC. "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 contended.
Bill Koenig, president of NBA global content and media distribution, reinforced this perspective, stating, "The response made by TBS does not qualify as a match."
Warner Bros. Discovery’s Stance
Despite the NBA’s arguments, Warner Bros. Discovery is standing firm on its position, emphasizing its commitment to maintaining their storied connection with NBA coverage. "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," a spokesperson for TNT Sports remarked.
Warner Bros. Discovery has until September 20 to file its response to the NBA’s motion. The outcome of this legal tussle will be closely observed, given its significant implications for broadcast rights and the dynamics of sports media distribution.
Amazon Stepping In
Meanwhile, Amazon Prime Video is gearing up for an exciting role in broadcasting NBA games. The tech giant's deal includes exclusive coverage of key NBA Cup stages and the NBA League Pass package, with scheduled broadcasts on Friday nights, select Saturday afternoons, and Thursday night doubleheaders following "Thursday Night Football."
This shift towards streaming platforms reflects a broader trend in sports viewership, ensuring that fans have diverse options for accessing content. As such, the resolution of this conflict will not only affect the stakeholders involved but could also set precedents for how media rights agreements are structured and contested in the future.
The NBA’s motion to dismiss this case serves as a critical juncture in the ongoing evolution of sports media rights. As both sides prepare their arguments, the industry watches with keen interest to see how this high-stakes showdown will unfold.