Jul 26, 2024, 6:30 PM
Jul 24, 2024, 7:56 PM

Warner Bros. Discovery Sues NBA Over Media Rights Deal

Highlights
  • Warner Bros. Discovery has initiated legal action against the NBA regarding an unresolved media rights deal.
  • The lawsuit stems from the NBA's rejection of Warner's matching offer for one package in the league's new 11-year media rights agreement.
  • This conflict may have significant implications for both parties' future media strategies and revenue.
Story

Warner Bros. Discovery (WBD) has initiated legal action against the NBA after the league rejected its matching offer for a media rights package in a new 11-year deal. The lawsuit seeks a court ruling affirming that WBD matched Amazon Prime Video’s offer and aims to delay the implementation of the new media rights agreement, which is set to commence in the 2025-26 season. The NBA recently finalized deals with Disney, NBCUniversal, and Amazon Prime Video, dismissing WBD's $1.8 billion annual proposal. In a statement, TNT Sports, a WBD subsidiary, expressed disappointment over the NBA's decision, asserting that the rejection was unjustified. The company emphasized its commitment to providing fans with access to NBA content through its platforms, including TNT and Max. WBD's legal move underscores its belief that it has a contractual right to the media rights, which it argues is also in the best interest of fans. NBA spokesman Mike Bass countered that WBD's claims lack merit and assured that the league's legal team would address the lawsuit. The Amazon offer includes cable rights, which encompass TNT rights, as it pertains to games currently distributed by TBS. This legal dispute marks a significant moment in the long-standing relationship between the NBA and Turner Sports, which has been in place since 1984. Discovery CEO David Zaslav previously indicated that the company could operate without the NBA, while both WBD and the league have expressed intentions to maximize fan engagement and accessibility during negotiations.

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