NBA Moves to Dismiss Warner Bros. Discovery Lawsuit Over Media Rights Deal
The NBA has taken a significant legal step by filing a motion to dismiss the lawsuit brought against it by Warner Bros. Discovery. The dispute centers around the new massive 11-year media rights deal that the NBA recently secured, worth nearly $76 billion, which extends from the 2025-26 season through the 2035-36 season. This new contract has initiated new partnerships with Disney, NBC, and Amazon Prime Video, effectively ending a nearly 40-year relationship with Turner.
The Crux of the Legal Battle
Warner Bros. Discovery alleges that the NBA breached its contract by rejecting their matching offer for the new media rights deal. According to the NBA, Warner Bros. Discovery significantly altered Amazon’s original offer, which was presented as a basis for matching.
"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."
This points to a critical departure where Warner Bros. Discovery attempted to combine Amazon’s digital distribution pricing with the more traditional distribution rights of a linear television network, which are typically costlier.
The NBA's Retort
Legal documents filed by the NBA include a detailed 28-page motion and accompanying materials. The league has requested the dismissal of Warner Bros. Discovery’s lawsuit with prejudice, which would prevent them from refiling the case in the future. Key to the NBA's argument is the claim that Warner Bros. Discovery made substantial modifications to Amazon’s offer, turning it into a counteroffer rather than a match.
"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. They cited that Warner Bros. Discovery made significant changes, including revising eight of Amazon's 27 sections, re-defining 11 terms, striking out nearly 300 words, and adding over 270 words. These revisions were deemed substantial enough to invalidate the matching claim.
Adding to the complexity, Amazon’s offer included an upfront payment requirement of approximately $5.4 billion to be held in an escrow account. Warner Bros. Discovery, on the other hand, suggested using syndicated letters of credit instead. This deviation further complicated their response to the NBA’s requirements.
Timelines and Responses
On July 17, the NBA presented Amazon’s offer to Warner Bros. Discovery. The latter responded five days later, claiming they had successfully matched the offer. However, the NBA rejected this claim on July 24, pointing out numerous discrepancies in their matching attempt.
Bill Koenig, president of NBA global content and media distribution, remarked, "The response made by TBS does not qualify as a match."
Warner Bros. Discovery now has until September 20 to file its formal response to the motion to dismiss.
An End of an Era and a New Beginning
This legal scuffle signals a dramatic shift in the landscape of NBA broadcasting. Amazon Prime Video is slated to broadcast games on Friday nights, select Saturday afternoons, and Thursday night doubleheaders following "Thursday Night Football." The deal also includes exclusive coverage of crucial NBA Cup stages and the NBA League Pass package.
The new deal marks the end of a nearly four-decade partnership with Turner, which aired NBA games on its TNT network. Turner Sports conveyed its disappointment but sought to emphasize its commitment to offering high-quality NBA content through its other widely distributed platforms, including TNT and Max. "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," stated TNT Sports.
With the NBA firmly standing its ground and Warner Bros. Discovery preparing its response, the outcome of this legal dispute could have lasting implications for the broadcasting landscape and the future of sports media rights deals.