The ongoing legal drama between the NBA and Warner Bros. Discovery has reached a critical juncture. The NBA recently filed a motion to dismiss the lawsuit initiated by Warner Bros. Discovery, which alleged that the NBA breached its contract by rejecting their matching offer for a new media rights deal. This complex legal battle occurs against the backdrop of the NBA’s groundbreaking new 11-year media rights contract, valued at nearly $76 billion, covering the 2025-26 season through the 2035-36 season.
A New Era in NBA Broadcasting
The NBA's new media rights deal is nothing short of transformative, marking the end of a nearly 40-year relationship with Turner Broadcasting System (TBS). Instead, the NBA has partnered with Disney, NBC, and Amazon Prime Video to bring the games to fans in innovative new ways. The deal includes Amazon broadcasting games on Friday nights, selected Saturday afternoons, and Thursday night doubleheaders following "Thursday Night Football." Amazon will also have exclusive coverage of significant NBA Cup stages and the NBA League Pass package.
However, this new agreement has not come without its controversies. Warner Bros. Discovery, through its subsidiary TBS, attempted to match Amazon's offer to maintain its rights to broadcast NBA games. Unfortunately for TBS, their attempt was deemed insufficient by the NBA, sparking the current lawsuit.
Warner Bros. Discovery's Legal Maneuvering
Warner Bros. Discovery's primary grievance is centered on the NBA's decision to reject their matching offer. According to them, their offer was a valid match to Amazon’s proposal. The NBA, however, strongly disagrees, stating that Warner Bros. Discovery had made substantial changes to Amazon's original offer, thereby constituting a counteroffer rather than a true match.
The NBA's legal response, contained in a 28-page motion and associated documents, details these discrepancies. They highlighted that Warner Bros. Discovery had revised eight of the 27 sections of Amazon's offer, redefined 11 terms, struck out nearly 300 words, and added over 270 new words. Notably, Amazon's proposal required an upfront payment of approximately $5.4 billion held in an escrow account, a condition Warner Bros. Discovery attempted to modify by suggesting syndicated letters of credit instead.
This significant alteration was deemed unacceptable by the NBA, which led to their rejection of Warner Bros. Discovery's offer on July 24, five days after its submission. The NBA has since requested the dismissal of the lawsuit with prejudice, which would prevent Warner Bros. Discovery from refiling the case.
The NBA's Defense
The NBA has made its stance clear. "TBS chose not to match NBCUniversal's offer, which would have enabled TBS to continue distributing games via its TNT linear cable network," the league 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 NBA further argued, "Far from accepting each term of Amazon's offer, TBS's revisions constituted a counteroffer that the NBA was free to reject." Adding to that sentiment, Bill Koenig, the NBA’s president of global content and media distribution, asserted, "The response made by TBS does not qualify as a match."
In response, Warner Bros. Discovery has staunchly defended its position, emphasizing the importance of their own widely distributed platforms, including TNT and Max. A representative from TNT Sports asserted, "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."
Awaiting the Legal Outcome
The stakes in this legal battle are incredibly high, with both sides having much to lose. Warner Bros. Discovery has until September 20 to file its response to the NBA's comprehensive dismissal request. As the legal gears turn, the industry and fans alike watch closely, aware that the outcome of this case could redefine the future landscape of NBA broadcasting.
The intricacies and high stakes of this case highlight the rapidly evolving nature of media rights in sports. With streaming giants like Amazon entering the fray, the rules of engagement continue to change, challenging traditional broadcasters to adapt or be left behind. The courts will ultimately decide if Warner Bros. Discovery's efforts to adapt were within their contractual rights.
For now, the drama continues, both on and off the court.