NEW YORK — The NBA has formally requested the New York Supreme Court to reject a lawsuit from Warner Bros. Discovery, arguing that the media giant’s subsidiary, Turner Broadcasting System, did not meet the conditions necessary to match a competitive bid for league broadcasting rights. This legal conflict has emerged weeks after the NBA inked a substantial $76 billion media deal with Amazon Prime Video, Disney, and NBC, possibly ending its long-standing broadcast partnership with Turner that started in 1984.
In a 28-page court document submitted on a recent Friday, along with supplementary filings, the NBA urges the dismissal of the lawsuit “with prejudice,” a legal term that would prevent Warner Bros. Discovery from refiling the case in the future. The league contends that Turner’s amendments to Amazon’s proposal constituted a counteroffer, which they were under no obligation to accept.
According to the documents, Turner did not simply match the $1.8 billion annual offer from Amazon but altered it extensively. Warner Bros. Discovery’s changes included significant adjustments to multiple sections and terms of Amazon’s original offer, integrating traditional distribution rights typically associated with linear television networks like its own TNT.
Initially presented with Amazon’s bid on July 17, Turner responded on July 22 with what it claimed was a matching offer. However, the NBA specified in their subsequent rejection that this response did not meet the same scope or financial security arrangements as the original Amazon offer. Notably, Amazon had agreed to pay about $5.4 billion of its fees upfront into an escrow account, a commitment Turner did not replicate in its proposal.
Warner Bros. Discovery has integrated its sports content across multiple platforms, including Max, its streaming service, and contends that its offer matched Amazon’s in terms of content delivery. Despite their assertion, NBA documents filed in court argue that previous agreements between Warner Bros. Discovery’s subsidiaries and NBA Media Ventures do not grant Turner the right to adjust streaming terms to match those laid out by Amazon.
Warner Bros. Discovery cited its right to match third-party offers under the terms of its 2014 contract with the NBA, which it argues should allow it to continue providing NBA content through its platforms, including linear TV options. This is contested by the NBA, which has shifted increasingly towards embracing streaming platforms to broaden viewer access.
In the midst of legal proceedings, the new media rights deal delineates that Amazon Prime Video will host NBA games on Friday nights, select Saturday afternoons, and offer Thursday night doubleheaders following the conclusion of its “Thursday Night Football.” This package underscores the NBA’s pivot to more flexible and widely accessible viewing options, spanning different days and platforms to attract a broader audience.
The case underscores a broader shift in media consumption patterns, as organizations like the NBA navigate between traditional broadcast agreements and the burgeoning demand for digital streaming access. This tension reflects ongoing negotiations in many sports leagues worldwide as they balance historical partnerships with the need to innovate and expand their reach.
Warner Bros. Discovery’s response to the lawsuit is due by September 20, at which point they will lay out their formal opposition to the NBA’s motion to dismiss the lawsuit. As this legal battle unfolds, it will set precedents for how sports leagues engage with media partners in an increasingly digital landscape and could redefine how major sports rights are negotiated in the future.
In the meantime, Turner maintains that its actions were both legally justified and in the best interest of NBA fans, promising continued high-quality, flexible coverage of NBA games across its platforms. The outcome of this case could significantly impact how fans engage with their favorite sports content, making this a pivotal moment for sports broadcasting.