Warner Bros. Discovery Sues NBA Over Broadcast Rights
In a follow up to a previous article about TNT’s NBA deal coming to an end, Warner Bros. Discovery filed a lawsuit against the NBA for breach of contract on Friday, following the league’s rejection of its offer to match a third-party deal for broadcasting rights. The suit, which was filed under seal in New York County Supreme Court, alleges that Warner Bros. Discovery has a contractual right to broadcast NBA games through TNT Sports.
The dispute centers around the NBA’s recent agreement with Amazon, which allows the streaming service to air 66 regular-season NBA games and additional content through the 2035-36 season. Warner Bros. Discovery argues that it should have the right to match this deal, but the NBA contends that the matching rights only apply to NBCUniversal’s $2.5 billion agreement.
According to reports, Warner Bros. Discovery’s plan to simulcast NBA games on its cable network TNT and its streaming service Max does not equate to Amazon’s exclusive streaming arrangement. Former NBA player and commentator Charles Barkley has weighed in on the situation, suggesting that the NBA has long wanted to sever ties with TNT and expressing doubt about TNT’s ability to compete with Amazon in this media landscape.
The judge in Warner Bros. Discovery’s lawsuit against the NBA
The judge presiding over Warner Bros. Discovery’s lawsuit against the NBA has a notable connection to the league’s media rights history. Justice Joel M. Cohen, who is overseeing the case, previously represented the Silna brothers in a landmark settlement with the NBA in 2014.
Before his appointment as a judge in 2018, Cohen was a partner in a case against the NBA, representing Ozzie and Daniel Silna, former owners of the Spirit of St. Louis ABA team. When the ABA merged with the NBA in 1976, the Silnas negotiated an extraordinary deal: in exchange for ceasing operations, they received approximately one-seventh of future TV broadcast revenues from the four ABA teams joining the NBA, in perpetuity.
This agreement, made when the NBA’s popularity was relatively low, proved to be one of the most lucrative deals in sports business history. As the league’s profile grew, so did the Silnas’ earnings, far outpacing the $3 million payout received by another former ABA team owner.
Justice Cohen has disclosed this potential conflict of interest to both parties involved in the current lawsuit.
This revelation adds an intriguing layer to the ongoing legal battle between Warner Bros. Discovery and the NBA, given the judge’s intimate familiarity with the league’s media rights history and negotiations.