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Home » Warner Bros. Discovery sues NBA over Amazon deal
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Warner Bros. Discovery sues NBA over Amazon deal

i2wtcBy i2wtcJuly 26, 2024No Comments3 Mins Read
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Warner Bros. Discovery has filed a lawsuit against the NBA, alleging that the league breached its contract by selling a broadcast-rights package to Amazon. The suit marks a dramatic escalation of tensions between the longtime partners. Warner, which owns TNT Sports, believes it has the ability to match and essentially take over the Amazon deal under the terms of its previous rights agreement with the league.

“We have taken legal action to enforce our rights after the NBA wrongfully refused to match our third-party offers,” TNT Sports said in a statement after the lawsuit was filed.

NBA spokesman Mike Bass responded, “Warner Bros. Discovery’s claims are without merit and our lawyers will be responding.”

The NBA last week approved media rights deals with Amazon, Comcast’s NBC, Disney’s ESPN and ABC that are set to take effect in the 2025-26 season and are worth a combined $76 billion over 11 years, with Amazon’s portion of the deal worth $1.8 billion per year.

Amazon founder Jeff Bezos also owns The Washington Post.

After the league reached a new contract, Warner told the NBA it was exercising its equal rights to Amazon’s cut. The NBA rejected those rights and announced a new contract on Wednesday that included the Amazon deal. Warner then filed suit.

According to the 108-page complaint filed in New York state court, “the NBA has [TNT’s] While the league has told Warner that there are differences in the contracts — Amazon is a streaming-only company and Turner is a cable network, for example — the lawsuit argues those differences are not relevant to the matching clause.

Warner Bros. argues the NBA is crucial to its business because of the fees it charges cable companies and the “halo effect” of live broadcasts that allow it to promote its other programming, and is asking the court for a preliminary injunction to bar the league from striking a deal with Amazon.

The lawsuit seeks monetary damages if Warner is not granted any equitable relief.

The lawsuit could also serve as a catalyst for settlement talks, though industry insiders have differing views on what those talks might look like. Some have speculated that TNT could continue to broadcast a small selection of regular-season games, though it’s hard to imagine where those games would come from. Turner could also continue to operate NBA TV or continue to air its popular pre- and post-game show, “Inside the NBA,” through a highlight rights deal.

Some have suggested Warner could seek a financial settlement or try to sell a package of games for next season, the final season of his current NBA contract.

The NBA has been broadcast on TNT Sports since 1989. “Inside the NBA” star Charles Barkley released the statement Friday, which was distributed on the Warner-owned social media channels.

“I’m not sure TNT had a chance,” he wrote. “They paid the same amount, but the league knows that only Amazon and these other tech companies will be willing to pay when rights fees double in the future.”

Barkley also spoke to Dan Patrick on Friday and said he plans to talk to the NBA’s three remaining media partners and listen to any job offers that come his way. Barkley is scheduled to appear on “Inside the NBA” again next season.



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