Written by: Andrew Curran
Turner Broadcasting System and Warner Bros. Discovery, Inc. brought suit against the National Basketball Association (“NBA”), alleging breach of contract over the league’s rejection of Turner’s matching bid for media rights. The complaint was filed shortly after the NBA announced the end of a long-standing broadcast partnership with Turner. The complaint filed in the Manhattan Supreme Court asks that the court require the NBA to grant Turner the rights to air regular season and playoff games on the network’s streaming services, TNT and Max.
The NBA entered into new broadcasting agreements earlier this month with Disney, Comcast, and Amazon, which subsequently ended the nearly four-decade-long broadcasting agreement with Turner. Starting in the 2025-26 season, Turner will no longer be able to broadcast NBA games or its fan favorite studio show “Inside the NBA.” The new agreements, valued at roughly 77 billion dollars over the next eleven years, are expected to triple the leagues broadcast income.
In the complaint, Turner states it has a vested interest in maintaining distribution rights and it’s “carefully developed 40-year brand.” Turner says it has invested hundreds of millions in talent, including the cast of Inside the NBA featuring Charles Barkley, Shaquille O’Neil, Kenny Smith, and Ernie Johnson.
“Given the NBA’s unjustified rejection of our matching of a third-party offer, we have taken legal action to enforce our rights,” Warner Bros. said in a press statement. “We strongly believe this is not just our contractual right, but also in the best interest of fans who want to keep watching our industry-leading NBA content with the choice and flexibility we offer them through our widely distributed WBD video-first distribution platforms—including TNT and Max.”
Turner argues the NBA games drive significant viewership and are assets that cannot easily be replaced. Without the games Turner will lose its competitive advantage in negotiating rights with other sports leagues because it will lower the price Turner can charge advertisers.
Turner further states the NBA violated the terms of the contract when they refused to honor Turner’s match of Amazon’s competing bit for broadcasting rights. In a press statement, the NBA said Turner’s proposal did not match the terms of Amazon’s offer.
The lawsuit will most likely hinge on the court’s interpretation of matching rights. The NBA claims because Amazon’s portion of the new broader broadcasting deal is for digital streaming broadcast distribution, not traditional linear distribution, Turner’s offer not a “matching” offer. Turner claims they are capable of matching Amazon’s price and therefore have matched Amazon’s offer. This is a novel issue for the court, as digital versus linear distribution rights as equals has not been settled. The court’s decision may have a ripple effect on future media broadcasting rights as more professional sports leagues look to move their content from traditional linear distribution to working with third parties for more modern streaming partners.
Sources:
Beth Wang, Warner Bros. Sues the NBA After TV Rights Awarded to Rivals (2), Bloomberg Law (July 26, 2024).
Joe Reedy, Warner Bros. Discovery sues NBA for not accepting its matching offer, AP News (July 26, 2024).
Dawn Chmielewski, Warner Bros Discovery sues NBA over bid for broadcast rights, Reuters (July 26, 2024).
Baxter Holmes, Warner Bros. Discovery sues NBA over losing rights to Amazon, ESPN (July 26, 2024).
Daniel Frankel, Warner and Turner Sue the NBA Over Failed Renewal Deal, NextTV (July 26, 2024).
Alex Sherman, Warner Bros. Discovery sues NBA to secure media rights awarded to Amazon, CNBC (Jul 26, 2024).