The NBA has launched a motion to dismiss the lawsuit filed against it by Warner Bros. Discovery, pertaining to a contentious media rights deal. Warner Bros. Discovery accused the NBA of breaching its contract by not accepting their matching offer for a new media rights agreement.
The NBA recently secured a monumental 11-year media rights deal valued at nearly $76 billion. This deal, which spans the 2025-26 to 2035-36 seasons, introduces new partnerships with Disney, NBC, and Amazon Prime Video. A significant shift, it marks the end of the NBA's nearly 40-year collaboration with Turner.
Contentious Amendments
The NBA's legal response includes a comprehensive 28-page motion and supporting documents, where the league has requested the dismissal of the lawsuit with prejudice. Central to the NBA’s argument is the claim that Warner Bros. Discovery made substantial amendments to Amazon's original offer. Specifically, Warner Bros. Discovery revised eight of Amazon's 27 sections, redefined 11 terms, struck out approximately 300 words, and inserted over 270 new words.
The crux of the dispute stemmed from Amazon's proposal, which included an upfront payment of approximately $5.4 billion to be placed in an escrow account. Warner Bros. Discovery proposed an alternative, suggesting syndicated letters of credit instead of the escrow requirement. The NBA believes these changes fundamentally altered the offer.
The Timeline of Events
The sequence of events began on July 17 when the NBA presented Amazon’s offer to Warner Bros. Discovery. Five days later, Warner Bros. Discovery responded, asserting that they had successfully matched Amazon's offer. However, by July 24, the NBA dismissed Warner Bros. Discovery's response, citing numerous discrepancies in their matching attempt.
“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. The league argued that Warner Bros. Discovery attempted to match the less expensive Amazon offer but only after making several substantive changes to 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 contended.
The NBA further explained, “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.” This move, the NBA argues, invalidated Warner Bros. Discovery's claim of exercising a matching right.
Amazon's Role and Future Broadcasts
As part of the new deal, Amazon Prime Video is set to broadcast NBA games on Friday nights, select Saturday afternoons, and Thursday night doubleheaders following "Thursday Night Football." Additionally, Amazon’s agreement includes exclusive coverage of crucial NBA Cup stages and the NBA League Pass package, broadening its involvement in NBA coverage.
Bill Koenig, the president of NBA global content and media distribution, emphasized the league's stance, stating, “The response made by TBS does not qualify as a match.”
Warner Bros. Discovery's Deadline
Warner Bros. Discovery has until September 20 to formulate and file its response to the NBA's motion. They maintain that their actions aligned with their contractual rights and served the best interest of NBA fans. A spokesperson for TNT Sports remarked, “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.”
This unfolding legal battle underscores the complexities and high stakes involved in the media rights arena, particularly as streaming giants like Amazon challenge traditional broadcasters for premier sports content. As both sides prepare for their next legal maneuvers, the outcome of this lawsuit could set significant precedents for future media rights negotiations.