Quick Hit:

Warner Bros. Discovery has filed a lawsuit against the NBA after the league rejected the company’s proposal to match an offer from Amazon Prime Video, claiming it "did not match the terms" of the deal.

Key Details:

• Warner Bros. Discovery claims their proposal to match Amazon’s offer was unjustly rejected by the NBA.

• The lawsuit was filed under seal on Friday morning.

• The NBA announced new rights deals with Disney, NBCUniversal, and Amazon on Wednesday.

Diving Deeper:

Warner Bros. Discovery has taken legal action against the NBA, challenging the league's decision to reject its attempt to match a broadcasting rights offer from Amazon Prime Video. The lawsuit, filed under seal on Friday, stems from what Warner Bros. Discovery (WBD) describes as an unjustified refusal by the NBA to honor their contractual matching rights.

"Given the NBA’s unjustified rejection of our matching of a third-party offer, we have taken legal action to enforce our rights," WBD stated. "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 them through our widely distributed WBD video-first distribution platforms – including TNT and Max."

This dispute follows the NBA's announcement on Wednesday of significant TV and streaming rights deals with Disney, NBCUniversal, and Amazon. While Disney continues as the primary rights partner, NBC and Amazon have also secured portions of the broadcasting rights. WBD had aimed to match Amazon’s proposal under the terms of its existing contract, which executives argue grants them the right to do so.

However, the NBA informed WBD and TNT Sports that their matching proposal was not accepted, stating it "did not match the terms of Amazon Prime Video’s offer." In response, WBD accused the league of grossly misinterpreting their contractual rights concerning the 2025-26 season and beyond, prompting their decision to pursue legal recourse.

This legal clash harkens back to a similar scenario 50 years ago when ABC Sports chief Roone Arledge sued the NBA after the league made a deal with CBS. Although Arledge's lawsuit and counterprogramming efforts—known as "Roone’s Revenge"—were ultimately unsuccessful in regaining the games for ABC, it remains a notable episode in sports broadcasting history. Warner Bros. Discovery's current battle with the NBA may similarly shape the landscape of sports media rights in the years to come.