Warner Bros. Discovery has filed a lawsuit against the NBA to secure the rights to broadcast a package of live games, challenging the league’s decision to award those rights to Amazon.
“Due to the NBA’s unjustified rejection of our game against a third-party offer, we have initiated legal proceedings to enforce our rights,” said TNT Sports, a unit of Warner Bros. Discovery. “We firmly believe this is not only our contractual right, but also the best service for fans who prefer our flexible and widely accessible platforms, including TNT and Max.”
The media company seeks to block the NBA from finalizing the deal with Amazon or seeking monetary damages for the infringement.
Earlier this week, the NBA announced deals with Disney, ComcastNBCUniversal and Amazon for three separate game packages, ending its nearly 40-year partnership with Warner Bros. Discovery’s Turner Sports. The new 11-year media rights deal is valued at approximately $77 billion, reflecting the growing value of live sports content.
Responding to the lawsuit, NBA spokesman Mike Bass said, “Warner Bros. Discovery’s claims are without merit and our legal team will address them accordingly.”
Warner Bros. Discovery had filed paperwork to match Amazon’s $1.8 billion-a-year package, which includes regular-season games, an in-season tournament and select playoff games. However, the NBA invalidated the tying rights, arguing that Warner Bros. Discovery’s offer didn’t meet the criteria because it involved both cable and streaming distribution, unlike Amazon’s exclusive streaming service.
Warner Bros. Discovery argues that its bundling rights should apply because many of the games in Amazon’s proposed bundle have historically aired on cable TV.
“The Matching Rights Exhibit (MRE) provides that if TBS matches an offer that includes cable rights, TBS will have the exclusive right to exercise those cable rights under the same terms,” the company argued in its court filing. “Amazon’s offer included cable rights as per the MRE, and TBS matched it. However, the NBA refused to honor this agreement.”
The NBA pointed to a clause in the 2014 rights agreement that states that rightsholders who match a third-party offer must stick to the specified form of distribution, such as streaming only over the Internet.
The lawsuit highlights the importance of NBA rights to Warner Bros. Discovery’s Turner Sports division. Despite comments from CEO David Zaslav in 2022 questioning the value of sports rights in a weaker economy, the company acknowledges that NBA games are crucial to viewership, advertising revenue and maintaining a competitive edge.
“NBA games attract substantial viewership and ratings, driving higher advertising and distribution costs,” Warner Bros. Discovery said. “NBA distribution rights are essential to growing the brand and reaching a broader audience, providing a competitive advantage in negotiations with other sports leagues.”
Warner Bros. Discovery is seeking preliminary and permanent injunctive relief to prevent the NBA from licensing these rights to Amazon, or, alternatively, monetary damages if equitable relief is not granted.
