The NBA has filed a motion to dismiss a lawsuit brought against it by Warner Bros. Discovery. The media conglomerate alleged that the NBA breached its contract by rejecting their matching offer for a new media rights deal. This legal dispute emerges in the backdrop of the NBA securing an 11-year media rights deal worth nearly $76 billion with Disney, NBC, and Amazon Prime Video, covering the 2025-26 season through to the 2035-36 season.
Breaking Away from Turner
Significantly, this new contract ends a nearly 40-year relationship between the NBA and Turner Broadcasting System (TBS). The NBA’s president of global content and media distribution, Bill Koenig, remarked, "The response made by TBS does not qualify as a match." According to the NBA, Warner Bros. Discovery, the parent company of TBS, made substantial revisions to Amazon’s offer, which included changes to eight of Amazon's 27 sections, redefining 11 terms, striking out nearly 300 words, and adding over 270 new words. Furthermore, Warner Bros. Discovery proposed syndicated letters of credit instead of Amazon's upfront payment requirement of approximately $5.4 billion held in an escrow account.
Discrepancies in Offer Matching
The NBA presented Amazon's offer to Warner Bros. Discovery on July 17. Five days later, Warner Bros. Discovery responded, claiming a successful match. However, on July 24, the NBA rejected Warner Bros. Discovery’s response, citing multiple discrepancies in their matching attempt. The league's detailed 28-page motion argued that instead of matching Amazon's offer, TBS purported to match but revised it to include traditional distribution rights and numerous other substantive changes. "Far from accepting each term of Amazon's offer, TBS's revisions constituted a counteroffer that the NBA was free to reject,” added the NBA.
A Costly Decision
"TBS chose not to match NBCUniversal's offer, which would have enabled TBS to continue distributing games via its TNT linear cable network," stated the NBA, pinpointing where TBS fell short. The statement continued, "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."
Amazon's Expanded Coverage
This new media rights deal marks a significant expansion for Amazon Prime Video, which now has secured exclusive broadcasting rights for crucial NBA Cup stages and the NBA League Pass package. Amazon is set to broadcast games on Friday nights, select Saturday afternoons, and Thursday night doubleheaders post "Thursday Night Football".
Awaiting Warner Bros. Discovery's Response
The NBA’s legal action seeks a dismissal of the lawsuit with prejudice, ensuring that Warner Bros. Discovery cannot refile the same claim. Warner Bros. Discovery, under the banner of TNT Sports, remains firm in their stance. They posit that their proposed revisions align with their right to offer fans industry-leading NBA content with flexible viewing options. "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," emphasized TNT Sports.
As the dispute unfolds, Warner Bros. Discovery has until September 20 to file its response. The resolution of this high-stakes contention will likely have far-reaching implications for media rights negotiations in the sports industry, setting important precedents for future deals and contractual obligations.