In a high-stakes legal battle that spotlights the competitive nature of media rights deals, the NBA has positioned itself firmly against a lawsuit from Warner Bros. Discovery. The core of the dispute revolves around the NBA's rejection of Warner Bros. Discovery's bid to match a new media rights deal, which culminated in an 11-year contract worth nearly $76 billion. This lucrative agreement, starting from the 2025-26 season through the 2035-36 season, includes heavyweight players such as Disney, NBC, and Amazon Prime Video.
A Disputed Match
Warner Bros. Discovery claims that the NBA breached its contract by not honoring their matching offer for the media rights deal. However, the NBA's legal response, detailed in a 28-page motion, paints a different picture. The league's core argument points to significant amendments made by Warner Bros. Discovery to Amazon's original offer. "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," stated the NBA.
The allegations include that Warner Bros. Discovery made substantial revisions to eight of Amazon's 27 sections, redefined 11 terms, struck out nearly 300 words, and added over 270 new ones. These changes, according to the NBA, turned what should have been a straightforward match into a counteroffer that they were under no obligation to accept. "Far from accepting each term of Amazon's offer, TBS's revisions constituted a counteroffer that the NBA was free to reject," the league argued.
The Financials
Amazon's original proposal included a key financial term—an upfront payment requirement of approximately $5.4 billion, to be held in an escrow account. In contrast, Warner Bros. Discovery suggested using syndicated letters of credit in place of the hefty escrow requirement. This amendment was one of the multiple deviations that ultimately led to the NBA's rejection of their matching attempt.
The chronology of events further highlights the rapid development of the disagreement. The NBA presented Amazon's offer to Warner Bros. Discovery on July 17. Five days later, Warner Bros. Discovery responded, claiming they had successfully matched the terms. However, by July 24, the NBA had formally rejected this claim, citing numerous discrepancies. "The response made by TBS does not qualify as a match," stated Bill Koenig, president of NBA global content and media distribution.
The New Era of Broadcasting
One of the significant outcomes of this new deal is the end of a nearly 40-year relationship between the NBA and Turner, marking a profound shift in the landscape of NBA broadcasting. Moving forward, Amazon Prime Video is set to play a pivotal role. They will broadcast games on Friday nights, select Saturday afternoons, and Thursday night doubleheaders following "Thursday Night Football."
Amazon's deal also includes exclusive coverage of crucial NBA Cup stages and the NBA League Pass package, further solidifying their significant presence in professional sports broadcasting. This addition to their portfolio underscores Amazon's commitment to becoming a formidable player in the streaming of live sports.
Response from Warner Bros. Discovery
While the NBA has requested the lawsuit's dismissal with prejudice, Warner Bros. Discovery has until September 20 to file its response. Addressing the contention, a representative from TNT Sports, a Warner Bros. Discovery entity, emphasized their position: "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."
The NBA's defense insists that Warner Bros. Discovery had the option to match a more expensive offer from NBC, which included traditional linear TV distribution rights. However, they opted for the more affordable route with Amazon's terms, albeit with substantial modifications. "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," the NBA's documentation asserted.
As the legal proceedings unfold, this case could set significant precedents for future media rights negotiations and the responsibilities of contractual obligations within sports broadcasting.