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- The NBA said it does not believe Warner Bros. Discovery can exercise its right to match Amazon's new media rights package.
- The league said it will move forward with Amazon as the third media partner in its new 11-year rights deal, along with ESPN and NBCUniversal.
- Warner Bros. Discovery responded to the league's statement saying it doesn't believe the NBA can reject the matching rights.
The NBA has rebuffed longtime media partner Warner Bros. Discovery's bid to keep airing games after next season.
The league told the media company it doesn't believe it holds legal matching rights for the new media deal. It instead plans to move ahead with Amazon as its third partner, along with ESPN and NBCUniversal, in its 11-year deal worth about $77 billion.
"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 said in a statement Wednesday.
Warner Bros. Discovery acquired matching rights as part of its current media rights deal with the league, which expires at the end of next season. That provision allows the company to match payment for any of the games that air on TNT, which it attempted to do Monday.
The NBA doesn't believe Warner Bros. Discovery's rights extend to an all-streaming package, which was carved out for Amazon. Warner Bros. Discovery also owns a streaming service, Max, which it could use to air games, but the company has told the NBA it plans to simulcast TNT games on Max rather than only putting them on Max.
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The NBA sent a letter Wednesday to Warner Bros. Discovery, addressed to TNT Sports chairman and CEO Luis Silberwasser, explaining why it can't match Amazon's package, citing language from the original matching provision, according to people familiar with the matter.
Money Report
The NBA cited a provision that said the existing media partner can exercise matching rights "only via the specific form of combined audio and video distribution (e.g. if the specific form of combined audio and video distribution is internet distribution, a matching incumbent may not exercise such games rights via television distribution)."
In its statement, the NBA said that "throughout these negotiations, our primary objective has been to maximize the reach and accessibility of our games for our fans. Our new arrangement with Amazon supports this goal by complementing the broadcast, cable and streaming packages that are already part of our new Disney and NBCUniversal arrangements."
"All three partners have also committed substantial resources to promote the league and enhance the fan experience," the league added. "We are grateful to Turner Sports for its award-winning coverage of the NBA and look forward to another season of the NBA on TNT."
Warner Bros. Discovery said Monday it matched one of the NBA's three media rights packages, which people familiar with the matter identified as the $1.8 billion per-year deal earmarked for Amazon Prime Video. Disney and Comcast's NBCUniversal signed deals for the other two packages, part of the league's $77 billion media rights renewal over 11 years.
"We have matched the Amazon offer, as we have a contractual right to do, and do not believe the NBA can reject it," Warner Bros. Discovery said in a statement on Wednesday. "In doing so, they are rejecting the many fans who continue to show their unwavering support for our best-in-class coverage, delivered through the full combined reach of WBD's video-first distribution platforms — including TNT, home to our four-decade partnership with the league, and Max, our leading streaming service."
"We think they have grossly misinterpreted our contractual rights with respect to the 2025-26 season and beyond, and we will take appropriate action," the statement continued. "We look forward, however, to another great season of the NBA on TNT and Max including our iconic Inside the NBA."
Warner Bros. Discovery's Turner Sports has carried live NBA games for nearly 40 years. The cable network TNT is home to "Inside the NBA," the popular studio show starring Ernie Johnson, Charles Barkley, Kenny Smith and Shaquille O'Neal. The future of the show is in doubt if the NBA doesn't strike a deal with Warner Bros. Discovery.
The league also wants its streaming partner to have maximum reach. Amazon Prime Video has more than twice as many global customers — more than 200 million to Max's roughly 100 million — which may make the service a more appealing platform for the league. The streaming rights are global, even though Warner Bros. Discovery is only bidding on U.S. rights, according to people familiar with the language in the contract.
Warner Bros. Discovery may need to sue the NBA to claim its matching rights. Lawyers for the company and the NBA have been poring over contractual language for the past several months, according to people familiar with the matter.
Details of the new NBA rights deal
Disney is paying $2.62 billion per year for its package of games and NBCUniversal is paying $2.45 billion, according to people familiar with the matter. The new rights deal begins with the 2025-26 season and runs through the 2035-36 season.
The NBA application will be a central portal for games, directing consumers to each national game, whether it is on broadcast, cable TV or a streaming service. About 75 regular-season games will be on broadcast TV each season, up from 15 games in the current rights deal. The league will have two broadcast stations as partners — Disney's ABC and NBCUniversal's NBC.
"Our new global media agreements with Disney, NBCUniversal and Amazon will maximize the reach and accessibility of NBA games for fans in the United States and around the world," NBA Commissioner Adam Silver said in a statement. "These partners will distribute our content across a wide range of platforms and help transform the fan experience over the next decade."
Disney will distribute 80 NBA regular-season games per season, including more than 20 games on ABC and up to 60 games on ESPN. ABC and ESPN will have one of the two conference finals series in 10 of the 11 years of the agreement. ABC will remain the exclusive home of the NBA Finals, which it has broadcast since 2003.
NBCUniversal will return as a league broadcasting partner after losing NBA rights in 2002. NBCUniversal will air 100 NBA games each regular season, including about 50 that will be exclusive to its streaming platform Peacock, according to CEO Mike Cavanagh.
"We are proud to once again partner with the NBA and WNBA, two iconic brands and the home of the best basketball in the world," Cavanagh in a statement. "We look forward to presenting our best-in-class coverage of both leagues with our innovative programming and distribution plan across NBC and Peacock to entertain fans and help grow the game."
WNBA games are also a part of all three packages. The partners will distribute more than 125 regular-season games and playoff games nationally each season. Disney will air a minimum of 25 regular-season games, NBCUniversal will carry 50 regular-season and playoff games on its platforms, and Prime Video will get 30 regular-season games, assuming Warner Bros. Discovery can't match Amazon's package.
Disclosure: NBCUniversal is the parent company of CNBC.