Warner Bros. Discovery has taken legal action against the NBA in an attempt to maintain broadcast rights for a package of live games. The media company seeks to prevent the NBA from awarding the rights to Amazon, with whom the NBA recently reached agreements on three different packages of games. The 11-year media rights deal is worth roughly $77 billion, significantly increasing the value of live sports.
Warner Bros. Discovery claims that the NBA unjustly rejected their matching of a third-party offer, which led to the legal action. The company argues that maintaining the rights is not only a contractual right but also in the best interest of fans who want to continue watching NBA content through Warner Bros. Discovery's widely distributed platforms.
The NBA, on the other hand, maintains that Warner Bros. Discovery's claims are without merit and has rejected their matching offer. The league argues that the matching rights were invalidated when Warner Bros. Discovery chose to match the Amazon package instead of the NBCUniversal agreement, as the two offers were not comparable.
Warner Bros. Discovery values the NBA rights highly, citing the significant viewership and ratings that NBA games bring to their platforms. The company argues that owning NBA rights is crucial for the health of their cable TV business and gives them a competitive advantage in the industry. They have requested injunctive relief to prohibit the NBA from licensing the rights to Amazon and have also indicated a desire for monetary damages if equitable relief is not granted.
Overall, the dispute between Warner Bros. Discovery and the NBA highlights the significant value of sports media rights in the current landscape. The legal battle will likely continue as both parties seek to protect their interests in the lucrative world of live sports broadcasting.