The legal tussle between the NBA and Warner Bros. Discovery heated up as the NBA filed a motion to dismiss the lawsuit filed against it. Warner Bros. Discovery alleged that the NBA breached its contract by rejecting their matching offer for a new media rights deal. This comes on the heels of the NBA establishing a monumental 11-year media rights deal valued at nearly $76 billion, integrating key partnerships with Disney, NBC, and Amazon Prime Video. This new agreement covers the 2025-26 season through the 2035-36 season, marking an end to the NBA’s nearly 40-year relationship with Turner.
Conflict Over Contract Terms
The crux of the dispute lies in Warner Bros. Discovery’s attempt to match Amazon's offer for the media rights deal. According to the NBA, Warner Bros. Discovery significantly altered essential portions of Amazon's offer in their effort to match it. In their legal motion, the NBA pointed out that Warner Bros. Discovery made substantive revisions to eight of Amazon's 27 sections, redefined 11 terms, struck out nearly 300 words, and introduced over 270 new words. As a result, the NBA claimed these changes constituted a counteroffer rather than a genuine match.
Bill Koenig, the president of NBA global content and media distribution, succinctly encapsulated the league’s stance: "Far from accepting each term of Amazon's offer, TBS's revisions constituted a counteroffer that the NBA was free to reject."
Financial Terms and Alternatives
Amazon’s proposal included a significant upfront payment requirement of approximately $5.4 billion, which was to be held in an escrow account. Instead, Warner Bros. Discovery suggested replacing the escrow requirement with syndicated letters of credit. When the NBA presented Amazon's offer to Warner Bros. Discovery on July 17, Warner Bros. Discovery responded within five days, asserting that they had successfully matched Amazon's offer. However, on July 24, the NBA dismissed Warner Bros. Discovery’s response, citing multiple discrepancies in their matching attempt.
The NBA justified its decision noting that Warner Bros. Discovery's alterations effectively nullified their bid's validity. The league’s motion noted, "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."
Shifts in Broadcast Dynamics
This new media rights deal with Amazon sees the tech giant stepping into a prominent role, set to broadcast NBA 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, amplifying its already expansive sports portfolio.
With the transition, TBS is stepping back from decades-long NBA coverage. As the NBA put it, "TBS chose not to match NBCUniversal's offer, which would have enabled TBS to continue distributing games via its TNT linear cable network." Yet, Warner Bros. Discovery attempted to stay in the game by adjusting Amazon's offer to suit their traditional distribution model. The NBA’s rebuttal to this attempt was clear-cut: "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."
Future Prospects
TNT Sports defended their stance by emphasizing their commitment to delivering NBA content across widely distributed platforms. "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 a representative from TNT Sports.
As this legal battle unfolds, Warner Bros. Discovery has until September 20 to file its response. The sports media landscape eagerly watches how this clash of titans will resolve, potentially setting significant precedents for future media rights negotiations in the industry.