The NBA has taken decisive action to dismiss the lawsuit filed by Warner Bros. Discovery, alleging breach of contract concerning the rejection of their matching offer for a new media rights deal. The legal spat emerged following the NBA's new 11-year media rights agreement worth a staggering $76 billion, extending from the 2025-26 season through the 2035-36 season. This deal has forged new partnerships with major players like Disney, NBC, and Amazon Prime Video, effectively ending a nearly 40-year association with Turner.
Details of the Dispute
Warner Bros. Discovery contends that they rightfully matched Amazon's offer, but the NBA's rigorous legal response suggests otherwise. The league filed a comprehensive 28-page motion seeking dismissal of the lawsuit with prejudice. According to the NBA's motion, Warner Bros. Discovery's attempt to match Amazon's proposal involved significant amendments, which essentially invalidated the matching claim.
Amazon's original offer entailed an upfront payment of approximately $5.4 billion to be held in an escrow account. However, Warner Bros. Discovery proposed an alternative, suggesting syndicated letters of credit in place of the escrow requirement. This deviation, among other alterations, formed a core part of the NBA's rejection.
Amazon vs. Warner Bros. Discovery
The NBA presented Amazon's offer to Warner Bros. Discovery on July 17. Warner Bros. Discovery responded five days later, claiming to have successfully matched Amazon's terms. Yet, on July 24, the NBA rejected this response, citing multiple discrepancies in Warner Bros. Discovery's attempt. The NBA specifically pointed out that Warner Bros. Discovery had made substantive changes to eight of Amazon's 27 sections, redefined 11 terms, struck out nearly 300 words, and added over 270 new words—far from a straightforward match.
"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."
The league's stance is that Warner Bros. Discovery's revisions constituted a counteroffer rather than an exact match, thus affording the NBA the right to reject 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 elaborated. "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's New Horizons
Under the new deal, Amazon Prime Video is set to become a significant broadcaster of NBA games, with Friday nights, select Saturday afternoons, and Thursday night doubleheaders following "Thursday Night Football" on its slate. The agreement also includes exclusive coverage of critical stages of the NBA Cup and the NBA League Pass package, expanding Amazon's foothold in the sports broadcasting arena.
Bill Koenig, the NBA's president of global content and media distribution, underlined the non-compliance of Warner Bros. Discovery's matching claim, asserting, "The response made by TBS does not qualify as a match." His statement echoes the league's firm stance on maintaining the integrity of the bidding process.
On the opposite side, TNT Sports, part of Warner Bros. Discovery, defended their position, emphasizing the fans' interests. "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 representative from TNT Sports argued.
As the legal battle looms, Warner Bros. Discovery has a deadline of September 20 to file its response. This timeline ensures that the tension between the NBA and one of its long-time media partners continues to evolve, with the sports world keenly observing how the situation unfolds.
The outcome of this high-stakes legal tussle could set substantial precedents for future media rights negotiations in professional sports, potentially reshaping the landscape of sports broadcasting. For now, both entities remain entrenched in their positions, each asserting their rights and interpretations of the contract terms.
With the stakes so high, the resolution of this conflict will undoubtedly be scrutinized not just by fans and broadcasters, but by the broader business community as well.