The NBA has responded decisively to a lawsuit filed by Warner Bros. Discovery, requesting that the court dismiss the case with prejudice. This action follows Warner Bros. Discovery’s claims that the NBA breached their contract by rejecting their proposal to match a lucrative new media rights agreement.
Contractual Dispute
Warner Bros. Discovery, which has had a nearly 40-year-long association with the NBA through Turner, alleged that the league unfairly dismissed their offer to match a multi-billion dollar media rights deal. The NBA recently secured an 11-year media rights deal valued at nearly $76 billion. This new agreement includes partnerships with Disney, NBC, and Amazon Prime Video, and is set to span the 2025-26 season through the 2035-36 season.
In its legal filings, which comprise a 28-page motion and supporting documents, the NBA outlined its reasons for rejecting Warner Bros. Discovery’s bid. The league’s position is that the latter made unauthorized modifications to Amazon's offer. Specifically, Warner Bros. Discovery altered eight of Amazon's 27 sections, redefined 11 terms, struck out nearly 300 words, and added over 270 new words.
The Offers in Question
Amazon's proposal, which includes an upfront payment of approximately $5.4 billion to be held in an escrow account, seems to have been a sticking point. Warner Bros. Discovery countered this provision by suggesting syndicated letters of credit in place of the escrow requirement. The timeline of events shows that Warner Bros. Discovery received Amazon’s offer from the NBA on July 17 and responded five days later, asserting that they had successfully matched it. However, the NBA rejected their revised proposal on July 24, citing multiple discrepancies.
Amazon's agreement includes exclusive streaming of key NBA events, such as games on Friday nights, select Saturday afternoons, and Thursday night doubleheaders post "Thursday Night Football." Furthermore, it covers critical stages of the NBA Cup and the NBA League Pass package.
Narrative from the NBA
The NBA’s formal response underscores that Warner Bros. Discovery’s modifications essentially constituted a counteroffer. "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."
NBA representatives further elaborated that the claimed match by Warner Bros. Discovery did not adhere to the original terms set by Amazon. "Far from accepting each term of Amazon's offer, TBS's revisions constituted a counteroffer that the NBA was free to reject," the league asserted. Bill Koenig, the president of NBA global content and media distribution, echoed this sentiment, stating, "The response made by TBS does not qualify as a match."
Warner Bros. Discovery’s Perspective
On the other end, Warner Bros. Discovery maintains that their offer was in the best interest of basketball fans, ensuring continuity of access through their established platforms. A representative from TNT Sports defended their contractual efforts, emphasizing the value delivered to the audience: "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 respond to the motion filed by the NBA. As the legal battle unfolds, the stakes remain high for all involved parties, potentially reshaping how NBA content is distributed in the future.