Warner Bros. to sue NBA over bid for TV rights

Warner Bros. Discovery and its sports division, Turner Broadcasting System, have filed a lawsuit against the National Basketball Association (NBA) in New York over the league’s rejection of Turner’s matching bid for media rights. The lawsuit claims that the NBA’s refusal to honor Turner’s right to match third-party offers violates their existing agreement.

Turner Broadcasting System, a long-time partner of the NBA, argues that their contractual rights and the interests of basketball fans who enjoy their NBA coverage are being disregarded. TNT Sports, a part of Turner, expressed strong belief in their right to match offers and emphasized the value of their industry-leading NBA content.

Turner and Warner Bros sued the NBA for breach of contract, days after the league announced the end of a long-running broadcast partnership https://t.co/wwzYwoxf0g pic.twitter.com/8M5gy4s90d

— Bloomberg TV (@BloombergTV) July 26, 2024

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In response, NBA spokesman Mike Bass stated that Warner Bros. Discovery’s claims are “without merit.”

The conflict arises after the NBA announced an 11-year deal valued at $77 billion with Walt Disney’s ESPN, Comcast-owned NBCUniversal, and Amazon.com. This deal marks the end of a nearly four-decade relationship between Turner and the NBA, as the NBA rejected a last-minute bid from TNT Sports, deeming it inferior to Amazon’s proposal.

Turner Broadcasting System contends that they have invested billions in distribution rights and additional millions in production and talent, including their Emmy-winning show “Inside the NBA.” They argue that NBA games are “unique assets” essential for significant viewership and ratings, which impact advertising revenue and competitive positioning in negotiating rights with other leagues.

According to the lawsuit, Turner claims the NBA provided them with the deal terms accepted from Amazon for streaming 64 regular season games and at least 30 playoff games. Turner responded with a letter agreeing to match Amazon’s offer and comply with the same material terms and conditions.