Not only is the classic “Inside the NBA” TNT show with Charles Barkley, Ernie Johnson, Shaquille O’Neal and Kenny “the Jet” Smith possibly discontinuing, but the future of NBA broadcasting is up in the air. While Amazon reached an 11-year media rights deal with the league starting in 2025-26, TNT Sports’ parent company Warners Bros. Discovery won’t go down without a fight.
WBD alleges in a lawsuit that Amazon’s offer included the following “poison pills,” via Front Office Sports’ Eric Fisher.
- “Cross-promotion with the NFL: WBD claims ‘the Amazon offer required that NBA games be shown on a platform that also shows NFL games—even though the NBA knows plaintiffs do not have NFL rights.’
- Escrow requirements: WBD claims it was asked to fund a $3.2 billion escrow requirement within five days of signing an agreement ‘when the NBA knew WBD had only ~$2.98 billion cash.’ The company continued that ‘the escrow requirement also was a farce because the NBA enjoyed unfettered discretion to relieve Amazon from it.’
- Credit rating and damages: WBD claims the NBA would be allowed to terminate rights ‘if either S&P or Moody’s were to downgrade WBD’s credit rating below a certain threshold, and recover a termination fee of up to $4.5 billion.’ A downgrade is much more likely for WBD than it is for Amazon given the relative size and health of both companies.”
Despite the league’s sly tactics, WBD matched the offer anyway, but not without formally complaining.
“The NBA did everything it could to frustrate [WBD’s] ability to match an offer by Amazon. And when that tactic failed, the NBA simply ignored its obligations and baselessly rejected [WBD’s] match,” the company explained in a filing with the New York State Supreme Court.
Why is the NBA phasing out WBD?
The NBA may want to follow in the NFL and MLB’s footsteps
It’s well-known that Amazon has become an unavoidable force in all facets of life, including sports broadcasting. NFL’s “Thursday Night Football” is now broadcast on the company’s “Prime Video” streaming service, and several MLB games are now shown on it as well.
WBD, though, needs the NBA more than the league needs it, via Fisher.
“The legal action by WBD arrives as the company faces increasing investor backlash, a sagging stock, and downgraded ratings from analysts due to the loss of NBA rights,” Fisher explained. “As the network tries to retain its ties with a league clearly seeking to take its games elsewhere, the situation now is poised to become one of the most combative rights disputes in modern sports-media history. ”
With streaming dominating the current media landscape, it’s no surprise that an older company like WBD is getting left behind, as Amazon essentially has limitless resources to offer. However, the New York Supreme Court could be WBD’s saving grace.
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