The National Basketball Association (NBA) has taken a firm stance in its legal battle with Warner Bros. Discovery, responding to the lawsuit filed by the media giant with a decisive motion to dismiss. The dispute centers around a highly lucrative media rights deal that the NBA inked for an impressive $76 billion over 11 years, stretching from the 2025-26 season through the 2035-36 season.
The Disputed Contract
Warner Bros. Discovery has alleged that the NBA breached its contract by rejecting their matching offer for the new media rights deal. This deal, notably, includes partnerships with Disney, NBC, and Amazon Prime Video, but marks the end of a nearly 40-year relationship with Turner, of which Warner Bros. Discovery is a part.
The new agreement sees Amazon Prime Video set to broadcast games on Friday nights, select Saturday afternoons, and Thursday night doubleheaders following "Thursday Night Football." Additionally, Amazon’s deal includes exclusive coverage of crucial NBA Cup stages and the NBA League Pass package, heralding a significant shift in how fans will access NBA content.
NBA's Legal Response
On filing its motion for dismissal with prejudice, the NBA delivered a comprehensive 28-page document to the court. The league highlighted that Warner Bros. Discovery had significantly amended Amazon's original offer. Specifically, Warner Bros. Discovery made substantive revisions to eight of Amazon's 27 sections, redefined 11 terms, struck out nearly 300 words, and added over 270 new words, fundamentally altering the proposal.
Bill Koenig, the president of NBA global content and media distribution, articulated the league’s position: "The response made by TBS does not qualify as a match." The NBA further elaborated on these discrepancies by detailing that Amazon's offer included an upfront payment requirement of approximately $5.4 billion held in an escrow account. In contrast, Warner Bros. Discovery suggested a syndicated letters of credit instead of the escrow requirement, a critical deviation from the original terms.
Timeline of Events
According to court documents, the NBA presented Amazon's offer to Warner Bros. Discovery on July 17. Five days later, Warner Bros. Discovery responded, asserting that they had successfully matched the offer. However, the NBA found multiple discrepancies within the matching attempt and ultimately rejected Warner Bros. Discovery’s response on July 24.
Among the NBA's contentions was that Warner Bros. Discovery, operating under TBS, chose not to match NBCUniversal's offer, which would have allowed TBS to continue distributing games via its TNT linear cable network. Instead, TBS opted to match the less expensive Amazon offer but revised it to include traditional distribution rights, along with other substantive changes.
"Far from accepting each term of Amazon's offer, TBS's revisions constituted a counteroffer that the NBA was free to reject," the NBA argued. The league emphasized that TBS could have matched a separate, more expensive third-party offer from NBC if it wanted linear TV distribution rights but elected not to do so, attempting instead to save billions by combining Amazon's lower price with the linear television rights granted to NBC.
Warner Bros. Discovery's Response
Warner Bros. Discovery now has until September 20 to file its response to the NBA's motion to dismiss. This pivotal juncture will determine whether the lawsuit progresses or if the NBA successfully quashes it at this early stage.
TNT Sports defended their position, stating, "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."
As the legal battle unfolds, the ramifications for the media landscape covering the NBA could be substantial. The stakes are high not only for the companies involved but also for the fans who have become accustomed to consuming NBA content through familiar avenues.
In the coming weeks, the attention will be on how Warner Bros. Discovery responds to the NBA's motion and whether the court will find enough merit in the NBA's claims to dismiss the lawsuit outright. One thing is certain: the outcome will have significant implications for the future of NBA media rights and the strategic partnerships that are crucial to the league's broadcasting future.