The NBA has put forward a motion to dismiss the lawsuit initiated by Warner Bros. Discovery, which alleged that the league breached its contract by not accepting their matching offer for a new media rights agreement. In response to this legal action, the NBA highlighted significant deviations made by Warner Bros. Discovery in their matching attempt, which they argue invalidated the match.
Background of the Dispute
Warner Bros. Discovery's contention revolves around their claim that they had successfully matched an offer from Amazon for a new media rights deal. This contract is a lucrative 11-year agreement worth nearly $76 billion, spanning from the 2025-26 season through the 2035-36 season. The new deal includes media giants such as Disney, NBC, and Amazon Prime Video and marks the end of a 40-year partnership between the NBA and Turner.
Central to the disagreement is the NBA's assertion that Warner Bros. Discovery significantly altered Amazon’s initial offer. The league presented Amazon’s proposal to Warner Bros. Discovery on July 17, which included an upfront payment requirement of approximately $5.4 billion to be held in an escrow account. However, Warner Bros. Discovery proposed syndicated letters of credit instead of the escrow requirement and made substantial revisions to eight out of Amazon's 27 sections, redefined 11 terms, struck out nearly 300 words, and added over 270 new words. Five days later, Warner Bros. Discovery claimed they had successfully matched Amazon's offer, which the NBA subsequently rejected on July 24 due to these discrepancies.
NBA's Justification
The NBA filed a comprehensive 28-page motion along with additional documents, requesting that the lawsuit be dismissed with prejudice. The league's motion emphasizes that the changes introduced by Warner Bros. Discovery constituted 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," stated the NBA. In their legal argument, the NBA also pointed out that Warner Bros. Discovery could have matched a separate, more expensive offer from NBC, but they chose not to. "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 elaborated.
Tom Koenig's Remarks
Bill Koenig, the president of NBA's global content and media distribution, also weighed in on the issue, asserting, "The response made by TBS does not qualify as a match." This perspective underscores the NBA's stance that Warner Bros. Discovery's alterations to the offer were significant enough to nullify their claim of a successful match.
Warner Bros. Discovery's Standpoint
While the NBA remains firm in its position, Warner Bros. Discovery stands by its assertion of having matched the offer. The company highlighted its rights to continue distributing NBA content through its well-established platforms, 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," commented a representative from TNT Sports.
The Future of NBA Broadcasts
As part of the new agreement, Amazon Prime Video will be featuring 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, signaling a significant shift in how fans will be able to access NBA content in the future.
A final resolution to this legal dispute is yet to unfold, with Warner Bros. Discovery having until September 20 to file their response. The outcome will not only impact the involved parties but could also set a precedent for how media rights deals are negotiated and enforced in the sports industry.