NBA Files Motion to Dismiss Lawsuit by Warner Bros. Discovery

The NBA has officially filed a motion to dismiss the lawsuit brought against it by Warner Bros. Discovery, marking a significant development in the ongoing dispute over a new media rights deal. Warner Bros. Discovery contended that the NBA breached its contract obligations by rejecting their matching offer for a new media rights agreement. The backdrop for this legal feud is the NBA's blockbuster 11-year media rights deal valued at nearly $76 billion, which spans the 2025-26 through 2035-36 seasons and includes partnerships with major networks such as Disney, NBC, and Amazon Prime Video. This new arrangement heralds the end of a nearly 40-year association between the NBA and Turner Broadcasting System (TBS).

Details of the Dispute

In its legal response, the NBA submitted a comprehensive 28-page motion accompanied by supporting documents, requesting that the lawsuit be dismissed with prejudice. The league robustly defended its decision, asserting that Warner Bros. Discovery (WBD) had fundamentally altered Amazon's original offer when attempting to match it. Specifically, the NBA pointed out that WBD made substantive revisions to eight of Amazon's 27 sections, redefined 11 terms, struck out nearly 300 words, and introduced over 270 new words.

Moreover, Amazon's proposal included a significant upfront payment requirement of approximately $5.4 billion, which was to be held in an escrow account. However, WBD suggested substituting this with syndicated letters of credit, a modification the NBA found unacceptable. The sequence of events further complicates the situation: the NBA presented Amazon's offer to WBD on July 17, and WBD responded five days later, maintaining that they had successfully matched the offer. The NBA rejected WBD’s response on July 24, citing multiple discrepancies in their matching attempt.

NBA's Stance

The NBA made its position unambiguously clear in its motion. "TBS chose not to match NBCUniversal's offer, which would have enabled TBS to continue distributing games via its TNT linear cable network," the league stated. "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."

The league contended that WBD's revisions amounted to a counteroffer, which the NBA was within its rights to reject. "Far from accepting each term of Amazon's offer, TBS's revisions constituted a counteroffer that the NBA was free to reject," the NBA asserted. The implication is that if TBS had desired linear TV distribution rights, it could have matched a more expensive third-party offer from NBC but chose not to do so. "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."

Response from Warner Bros. Discovery

WBD's response to the lawsuit underscores their commitment to preserving their distribution channels. "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," a TNT Sports spokesperson said.

The onus now lies on Warner Bros. Discovery to file their legal response by September 20, a date that could potentially reshape the landscape of sports broadcasting. The stakes are high as the NBA transitions into its new media rights deal, which promises an extensive range of coverage that includes games on Amazon Prime Video. Amazon’s coverage is poised to feature Friday night games, select Saturday afternoon matchups, and Thursday night doubleheaders following "Thursday Night Football." Additionally, the deal includes exclusive coverage of critical stages of the NBA Cup and the NBA League Pass package.

Bill Koenig, President of NBA global content and media distribution, corroborated the league's stance, emphasizing that WBD's matching attempt did not meet the contractual criteria. "The response made by TBS does not qualify as a match," Koenig stated unequivocally. This view sets the stage for what will likely be a contentious legal battle, as both parties seek to assert their interpretation of the contractual obligations involved.

As the deadline for WBD’s response looms, industry watchers and fans alike are keenly observing how this high-stakes legal confrontation will unfold. The outcome will not only determine the immediate future of NBA media rights but also set a precedent for how such contracts and negotiations are managed in the high-stakes world of sports broadcasting. For now, the ball is in Warner Bros. Discovery’s court, as they prepare their counterarguments in an effort to overturn the NBA's dismissal request.