The NBA has officially rejected Warner Bros. Discovery, with the league saying in a statement that it will not accept WBD’s offer to match the rights package that the league cut with Amazon.
“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.
“Throughout these negotiations, our primary objective has been to maximize the reach and accessibility of our games for our fans,” the statement continued. “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.
“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.”
The decision by the NBA came just two days after WBD told the league that it would be exercising its matching rights for Amazon’s $1.8 billion bid. Amazon’s deal is a streaming-only package, while WBD’s TNT Sports televises the games on TNT and also streams them on Max.
The specific details of WBD’s match offer were not immediately available, but a source said that the company had secured a letter of credit that would cover what is believed to be a $5.4 billion upfront payment that Amazon agreed to in its deal.
The league had months of drawn out negotiations with current and potential rights partners, with WBD ultimately unable to reach a new deal in its exclusive negotiating window.
Disney will remain the NBA’s partner for the “A” package, including the NBA Finals. The NBA also found new rights partners in the form of NBC Sports, which is in line to get the “B” package for around $2.5 billion per year, and Amazon for the “C” package.
What happens next is not entirely clear. WBD could try to sue the league, arguing that by rejecting its matching rights it is in breach of contract, while the league will likely argue — as its statement indicated — that WBD could not offer a package that is comparable to what Amazon had on the table.
The two sides could also engage in discussions and reach some sort of settlement.
More to come.
