NBA vs WBD: TV Rights Battle
NBA Slams Warner Bros Discovery in Court Battle Over Amazon TV Rights Deal, Calls Company Too Small to Compete
The NBA has slammed Warner Bros. Discovery (WBD) in an escalating legal battle over broadcast rights, accusing the media giant of lacking both the financial strength and the audience reach to compete with Amazon’s lucrative deal. The fight centers around a $77 billion, 11-year rights package that Amazon secured earlier this year, set to begin in the 2025-26 season. WBD, through its subsidiary Turner Broadcasting System (TBS), has sought to block the deal, but the NBA is pushing back hard. In a recent court filing, the NBA argued that WBD simply cannot keep up with the competition. “Amazon agreed, inter alia, to maintain an escrow account from which rights fees will automatically be paid to the NBA as they become due” the league’s legal team wrote. In contrast, TBS offered only letters of credit that could be accessed if payments were late. “That is not even close to the same thing” the NBA added, underlining WBD’s precarious financial position.
WBD’s struggles go beyond the courtroom. The company recently took a $9.1 billion write-down, partly due to losing its NBA rights, and its stock has plummeted nearly 70% since the 2022 merger of Warner Bros. and Discovery. The NBA claims WBD’s legacy media model doesn’t have the reach or resources to keep up with Amazon, which will promote NBA games alongside its highly successful NFL Thursday Night Football broadcasts.
WBD’s lawsuit, filed in late July, seeks to halt Amazon from broadcasting NBA games until the dispute is resolved. The media company contends that it has the contractual right to match Amazon’s offer, but the NBA insists that WBD’s current agreement doesn’t cover the standalone streaming rights that Amazon secured. “TBS does not ‘currently enjoy’ the rights covered by Amazon’s offer” the NBA stated in court filings, further questioning WBD’s ability to compete in the modern media landscape.
Adding to the tension, sources within the NBA suggest that WBD CEO David Zaslav may have sabotaged the company’s position when he remarked: “We don’t have to have the NBA” during earlier negotiations. WBD is standing firm despite the mounting challenges. “We maintain our position that the NBA’s actions are unjustified” said a spokesperson for TNT Sports. “We strongly believe we have fulfilled our contractual right to match the third-party offer. It is in the best interest of the fans who want to continue to enjoy our industry-leading NBA content”.
As the legal battle continues, the hearing on the NBA’s motion to dismiss WBD’s suit is scheduled for October 4, just weeks before the new NBA season begins. With pre-season games not airing on TNT and the Amazon deal moving forward, this could mark the end of an era for WBD’s long relationship with the NBA.
Source: Deadline
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NBA Slams Warner Bros Discovery in Court Battle Over Amazon TV Rights Deal, Calls Company Too Small to Compete
The NBA has slammed Warner Bros. Discovery (WBD) in an escalating legal battle over broadcast rights, accusing the media giant of lacking both the financial strength and the audience reach to compete with Amazon’s lucrative deal. The fight centers around a $77 billion, 11-year rights package that Amazon secured earlier this year, set to begin in the 2025-26 season. WBD, through its subsidiary Turner Broadcasting System (TBS), has sought to block the deal, but the NBA is pushing back hard. In a recent court filing, the NBA argued that WBD simply cannot keep up with the competition. “Amazon agreed, inter alia, to maintain an escrow account from which rights fees will automatically be paid to the NBA as they become due” the league’s legal team wrote. In contrast, TBS offered only letters of credit that could be accessed if payments were late. “That is not even close to the same thing” the NBA added, underlining WBD’s precarious financial position.
WBD’s struggles go beyond the courtroom. The company recently took a $9.1 billion write-down, partly due to losing its NBA rights, and its stock has plummeted nearly 70% since the 2022 merger of Warner Bros. and Discovery. The NBA claims WBD’s legacy media model doesn’t have the reach or resources to keep up with Amazon, which will promote NBA games alongside its highly successful NFL Thursday Night Football broadcasts.
WBD’s lawsuit, filed in late July, seeks to halt Amazon from broadcasting NBA games until the dispute is resolved. The media company contends that it has the contractual right to match Amazon’s offer, but the NBA insists that WBD’s current agreement doesn’t cover the standalone streaming rights that Amazon secured. “TBS does not ‘currently enjoy’ the rights covered by Amazon’s offer” the NBA stated in court filings, further questioning WBD’s ability to compete in the modern media landscape.
Adding to the tension, sources within the NBA suggest that WBD CEO David Zaslav may have sabotaged the company’s position when he remarked: “We don’t have to have the NBA” during earlier negotiations. WBD is standing firm despite the mounting challenges. “We maintain our position that the NBA’s actions are unjustified” said a spokesperson for TNT Sports. “We strongly believe we have fulfilled our contractual right to match the third-party offer. It is in the best interest of the fans who want to continue to enjoy our industry-leading NBA content”.
As the legal battle continues, the hearing on the NBA’s motion to dismiss WBD’s suit is scheduled for October 4, just weeks before the new NBA season begins. With pre-season games not airing on TNT and the Amazon deal moving forward, this could mark the end of an era for WBD’s long relationship with the NBA.
Source: Deadline
Share:
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