Wednesday, November 6, 2024

Warner Bros. Discovery is suing the NBA over its deal with Amazon

Warner Bros. Discovery filed a lawsuit against the NBA, alleging the league breached its contract by selling a bundle of broadcast rights to Amazon. The complaint represents 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 deal with the league.

“We have taken legal action to enforce our rights due to the NBA’s unfair refusal to match our third-party offer,” TNT Sports wrote 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 address them.”

Last week the NBA approved media rights deals with Amazon, Comcast-owned NBC and Disney-owned ESPN and ABC. They take effect in the 2025-26 season and total $76 billion over 11 years. Amazon’s share of that deal is $1.8 billion a year.

Amazon founder Jeff Bezos also owns The Washington Post.

Warner told the NBA that it will exercise what it believes are its applicable rights to the Amazon region after the league reaches its new contracts. The NBA rejected the competition and announced new deals Wednesday, including with Amazon. Warner then sued.

According to the 108-page complaint filed in state court in New York, “The NBA is not entitled to deference. [TNT’s] Fit.” The lawsuit argued that the league told Warner that there were differences between the contracts — for example, Amazon is a streaming-only company, and TNT is a cable network — and that those differences don’t apply to the applicable provision.

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Warner is seeking injunctive relief from a court to prevent the league from entering into a deal with Amazon, arguing that the NBA is important to its business because of fees charged to cable companies and the “halo effect” of live games. to promote its other programming.

If Warner is not awarded any equitable relief, the suit seeks monetary damages.

The case could spark settlement talks, though those around the industry offered differing views on what those might look like. Some speculated that TNT could still air a small batch of regular-season games, though it’s hard to imagine where such games would come from. TNT may continue to operate NBA TV or air its popular pre- and post-game show “Inside the NBA” with a deal for highlight rights.

Others suggested that Warner could seek a financial solution or try to sell a bundle of next season’s games.

The NBA has been broadcast on TNT since 1989. Charles Barkley, star of “Inside the NBA.” issued a statement on Friday It was distributed on some social media channels owned by Warner.

“I’m not sure TNT ever had a chance,” he wrote. “DNT matched the money, but the league knows Amazon and these tech companies are the only ones willing to pay for the rights when they double in the future.”

Barkley too Dan interviewed Patrick on Friday In it he said he had spoken with the NBA’s three remaining media partners and asked about possible job opportunities. He will continue to appear on “Inside the NBA” next season.

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