Warner Bros. Discovery Sue NBA Over New Media Rights Deal With Amazon

A lawsuit was filed Friday in New York County Supreme Court as Warner Bros. Discovery (WBD), the parent company of TNT, sued the NBA over a matching rights clause in their previous TV contract. This follows the NBA’s announcement earlier this week that they would end their nearly 40-year partnership with TNT.

“We strongly believe this is not just our contractual right, but also in the best interest of fans who want to keep watching our industry-leading NBA content with the choice and flexibility we offer through our widely distributed WBD video-first distribution platforms—including TNT and Max,” said WBD.

TNT analyst and media personality Charles Barkley released a statement this morning criticizing the NBA’s decision. He suggested the split was inevitable.

“Clearly the NBA has wanted to break up with us from the beginning. I’m not sure TNT ever had a chance,” Barkley said in a statement released Friday morning. “TNT matched the money, but the league knows Amazon and these tech companies are willing to pay for the rights when they double in the future. The NBA didn’t want to piss them off.”

Charles Barkley, legendary TNT Inside the NBA Analyst, releases statement pic.twitter.com/oP3depz9xd

— Bleacher Report (@BleacherReport) July 26, 2024

This issue has been discussed in NBA circles as the shift in media consumption has led major sports conglomerates to pivot towards streaming services, making traditional sports media consumption less conventional for the average fan. While this makes business sense, it does not benefit the typical consumer.

“It’s a sad day when owners and commissioners choose money over the fans. It just sucks. I just want to thank everyone who has been at Turner for the last 24 years. They are the best people and the most talented, and they deserve better,” Barkley added.

The core issue with the matched contract revolved around “back-end rights,” a common clause in sports rights contracts that allows the current rightsholder to match the contract offer. The NBA argued that WBD’s reach, at a little over 80 million viewers, is significantly less than Amazon’s nearly 200 million viewers.

Another problem within the contract was that WBD would air games on both Max and TNT, rather than streaming the event on one exclusive channel, making it less appealing for the brand. A response from the league is inevitable, and how they handle this situation will be interesting to watch.