The ongoing legal tussle between the NBA and Warner Bros. Discovery took a significant turn late Friday as the league filed a motion to dismiss the lawsuit brought against it. Warner Bros. Discovery had alleged that the NBA breached its contract by rejecting their matching offer for a new media rights deal and instead aligning with Amazon.
The lawsuit by Warner Bros. Discovery, filed just two days after the NBA inked an 11-year media rights deal worth nearly $76 billion, claims that the league unfairly bypassed their matching rights. The new lucrative contract includes partnerships with Disney, NBC, and Amazon Prime Video, covering the 2025-26 season through the 2035-36 season. This move effectively ends a nearly 40-year relationship between the NBA and Turner, which began broadcasting NBA games in the 1984-85 season.
NBA’s legal response is articulated in a comprehensive 28-page motion and accompanying documents, requesting dismissal of the lawsuit with prejudice. The league argues that Warner Bros. Discovery attempted to fundamentally alter Amazon's original offer and claimed those revised terms as a match. Specifically, the NBA stated that Warner Bros. Discovery amended significant portions of the offer, made substantive revisions to eight of Amazon's 27 sections, redefined 11 terms, struck out nearly 300 words, and added over 270 new words.
"TBS chose not to match NBCUniversal's offer, which would have enabled TBS to continue distributing games via its TNT linear cable network," argued the NBA. "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."
Warner Bros. Discovery’s Counteroffer
The NBA’s stance is that Warner Bros. Discovery’s counteroffer diverged substantially from Amazon's terms, leaving the league free to reject it. Warner Bros. Discovery’s matching rights, according to the NBA, did not extend to a standalone streaming service but were limited to its linear cable television network.
"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. The league emphasized that Warner Bros. Discovery’s attempt to integrate the distribution rights substantially altered the proposal. Moreover, Warner Bros. Discovery had the option to match NBC's more traditional television offer but opted against it.
Amazon’s Stipulations and Warner Bros. Discovery’s Response
Amazon’s proposition included an upfront payment requirement of approximately $5.4 billion held in an escrow account, a condition Warner Bros. Discovery countered by suggesting syndicated letters of credit instead—a proposal dismissed by the NBA.
The NBA presented Amazon's offer to Warner Bros. Discovery on July 17, with Warner Bros. Discovery responding five days later, claiming a successful match. However, on July 24, the NBA rejected this response, citing multiple discrepancies, including unmet minimum reach and marketing commitments specific to Amazon's deal.
The intricacies of Amazon's offer, which Warner Bros. Discovery aimed to match, encompass a variety of primetime broadcasting slots and significant marketing and promotional commitments. Amazon Prime Video is set to broadcast games on Friday nights, select Saturday afternoons, and Thursday night doubleheaders post "Thursday Night Football," alongside exclusive coverage of crucial NBA Cup stages and the NBA League Pass package.
"If TBS wanted linear TV distribution rights, it could have matched a separate more expensive third-party offer from NBC," explained the NBA, "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."
Future Implications and Awaited Responses
The NBA further argued that the fundamental failure of Warner Bros. Discovery to meet the necessary requirements invalidated their claims. Bill Koenig, president of NBA global content and media distribution, stressed, "The response made by TBS does not qualify as a match."
In opposition, Warner Bros. Discovery maintains that its contractual rights should allow the continuation of NBA content on its platforms, emphasizing the benefit to fans through widely distributed channels like 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," stated TNT Sports. Warner Bros. Discovery has until September 20 to file its response.
The unfolding legal conflict highlights the evolving dynamics of media rights and distribution in professional sports, potentially setting precedents in how contracts and distribution rights are honored and contested in the ever-competitive sports media landscape.