NBA and Warner Bros. Discovery Headed for Legal Showdown Over Broadcasting Rights

The National Basketball Association (NBA) and Warner Bros. Discovery (WBD), the parent company of TNT, are on a collision course toward a legal battle over broadcasting rights, setting the stage for a high-stakes conflict in the sports media industry.

On Wednesday, the NBA rejected WBD’s attempt to match Amazon’s $1.8 billion annual offer for broadcasting rights. The league’s decision to partner with Amazon for its streaming services has intensified the dispute, as WBD contends it should have the opportunity to match Amazon’s offer due to its existing rights to air NBA games on both TNT and its Max platform.

In a statement, the NBA clarified its position, stating, “Warner Bros. Discovery’s most recent proposal did not match the terms of Amazon Prime Video’s offer and, therefore, we have entered into a long-term arrangement with Amazon.” The NBA argues that the deal with Amazon is exclusive to streaming and does not extend to cable broadcasts, which WBD’s offer includes.

WBD, led by CEO David Zaslav, has expressed its frustration, asserting that its contract includes a right to match offers for NBA content and that the company’s offer aligns with its contractual obligations. “We have matched the Amazon offer, as we have a contractual right to do, and do not believe the NBA can reject it,” a WBD spokesperson said.

The ongoing negotiation has become increasingly contentious, with both sides preparing for potential litigation. WBD is reportedly gearing up to take legal action, and an out-of-court settlement seems unlikely. The dispute highlights broader industry shifts as major sports leagues explore partnerships with Big Tech companies like Amazon, Apple, and Google, which are increasingly competing for lucrative broadcasting rights.

The NBA’s deals with Amazon, NBCUniversal, and Disney are expected to generate approximately $77 billion over the next 11 years. Despite WBD’s decision not to match NBCU’s $2.5 billion offer, the company focused on Amazon’s bid due to its lower price and perceived value.

The legal battle could reshape the landscape of sports broadcasting, raising questions about the future role of traditional media versus tech giants in sports content delivery. As technology companies enhance their bids with advanced viewing experiences, the traditional media business faces significant challenges.