The NBA has recently filed a motion to dismiss the lawsuit initiated by Warner Bros. Discovery. This lawsuit revolves around an alleged breach of contract concerning a new media rights deal, which Warner Bros. Discovery claims the NBA rejected despite a matching offer.
NBA’s Monumental Media Deal
The heart of the dispute is the NBA's extensive 11-year media rights agreement, valued at nearly $76 billion. This new contract, active from the 2025-26 season through the 2035-36 season, marks a significant shift in the landscape of sports broadcasting. The agreement includes partnerships with Disney, NBC, and Amazon Prime Video, ending a nearly 40-year relationship between the NBA and Turner.
Claims and Counterclaims
Warner Bros. Discovery contends that the NBA unjustly dismissed their matching offer. According to Warner Bros. Discovery, they provided a matched offer for the media rights, which the NBA declined improperly. However, the NBA has countered this claim in a detailed 28-page motion, accompanied by supporting documents, urging the court to dismiss Warner Bros. Discovery's lawsuit with prejudice.
The NBA asserts that Warner Bros. Discovery made significant amendments to the offer originally put forth by Amazon. Specifically, the league pointed out that Warner Bros. Discovery altered substantial parts of Amazon's proposal, including making substantive revisions to eight of the 27 sections, redefining 11 terms, striking out nearly 300 words, and adding over 270 new words.
The Central Issue: Upfront Payment vs. Letters of Credit
A central point of contention is Amazon’s stipulation for an upfront payment of approximately $5.4 billion to be held in an escrow account. Warner Bros. Discovery suggested an alternative of syndicated letters of credit instead of meeting Amazon's escrow requirement. This deviation from the original terms formed a significant part of the NBA's argument against Warner Bros. Discovery's matching claim.
The NBA presented Amazon's original offer to Warner Bros. Discovery on July 17. Warner Bros. Discovery responded five days later, asserting that they had successfully matched the proposal. However, on July 24, the NBA rejected Warner Bros. Discovery’s matching attempt, citing numerous discrepancies.
Key Broadcast Details and Coverage
Amazon Prime Video has secured the rights to broadcast NBA games, including Friday night games, select Saturday afternoons, and Thursday night doubleheaders following the NFL’s "Thursday Night Football." Additionally, Amazon’s deal encompasses exclusive coverage of crucial stages of the NBA Cup and the NBA League Pass package, broadening the platform’s sports portfolio.
Narratives from the Frontlines
The NBA has maintained a firm stance on Warner Bros. Discovery's response. "TBS chose not to match NBCUniversal's offer, which would have enabled TBS to continue distributing games via its TNT linear cable network," noted the league. They further 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."
Bill Koenig, president of NBA global content and media distribution, emphasized the NBA's position, stating, "Far from accepting each term of Amazon's offer, TBS's revisions constituted a counteroffer that the NBA was free to reject." He added, "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."
In a response reflecting their point of view, TNT Sports, under the Warner Bros. Discovery umbrella, 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."
Warner Bros. Discovery has until September 20 to file its response to the NBA's motion for dismissal, a date that holds considerable significance as both parties brace for the next phase in this high-stakes legal showdown over the future landscape of NBA broadcasting rights.