The NBA is taking its legal battle with Warner Bros. Discovery (WBD) to the next level, seeking the dismissal of a lawsuit filed by WBD in the New York Supreme Court, per ESPN. The lawsuit centers around a lucrative new media rights deal worth nearly $76 billion that the NBA signed with Disney, NBC, and Amazon Prime Video. This landmark deal, spanning from the 2025-26 season through the 2035-36 season, effectively ends a nearly four-decade-long partnership between the NBA and Turner, a subsidiary of WBD.
WBD contends that the NBA breached their contract by rejecting WBD's matching offer for the new media rights deal and instead opting to partner with Amazon. The NBA, however, argues that WBD attempted to modify the terms of Amazon's offer rather than accepting them as they were. The league asserts that WBD made substantial revisions to Amazon's offer, essentially creating a counteroffer that the NBA was within its rights to decline.
The Stakes Are High
The stakes in this legal battle are high for both parties. For WBD, the loss of NBA games represents a significant blow to its sports programming lineup, potentially impacting its viewership and advertising revenue. The company recently took a $9.1 billion write-down on its cable portfolio, citing the impending loss of NBA games as a contributing factor.
On the other hand, the NBA is keen to protect its new media rights deal, which promises to bring in billions of dollars in revenue over the next decade. The league is also likely eager to avoid any delays or disruptions to the implementation of the new deal, which should begin in the 2025-26 season.
The NBA has filed a motion for dismissal, and a hearing is scheduled for October 4 in New York City. WBD has stated its intention to file an opposition in the coming weeks. The outcome of this legal battle could have far-reaching implications for the future of sports media rights and the relationship between leagues and broadcasters.
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