WBD / TNT Sports is making yet another claim against the NBA, this time suggesting the league put a series of purposely onerous or immaterial contractual provisions to make it impossible for the company to exercise its matching rights.
The NBA did everything it could to frustrate [WBDs] ability to match an offer by Amazon. And when that tactic failed, the NBA simply ignored its obligations and baselessly rejected [WBDs] match, TNT/WBD stated in a filing with the Supreme Court of the State of New York where the case is being heard.
TNTs set of rights were estimated to be worth more than $1.8 billion per year between 2025-36. The coverage includes a conference final every other season, early-round playoffs the same as whats on on NBA TV right now, weekly regular-season broadcasts, the Emirates NBA Cup, WNBA rights and further assets.
WBD alleged the NBAs poison pills were: (via Front Office Sports)
- Cross-promotion with the NFL: WBD claims the Amazon offer required that NBA games be shown on a platform that also shows NFL gameseven 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 Moodys were to downgrade WBDs 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.
We certainly havent heard the last of the NBA / WBD feud, so stay tuned.
