TNT could sue the NBA over controversial new broadcast rights deal

The future of NBA broadcast rights is up in the air after the league opted to move away from TNT, ending a four-decade run with Warner Bros. Discovery.

On Wednesday it was announced that the league’s board of governors had agreed a new 11-year, $76 billion media rights deal with Disney (ESPN), NBC and Amazon Prime Video.

This agreement, however, may soon be the subject of a legal challenge after TNT issued a strongly-worded complaint. The previous broadcasting deal dictated that TNT have the right to match any offer submitted by rivals but the NBA whether they are capable of tabling a truly equal offer.

“We have matched the Amazon offer, as we have a contractual right to do, and do not believe the NBA can reject it,” TNT Sports wrote in a statement. “In doing so, they are rejecting the many fans who continue to show their unwavering support for our best-in-class coverage, delivered through the full combined reach of WBD’s video-first distribution platforms... We will take appropriate action.”

Why might TNT sue the NBA?

On the face of it, it may seem like TNT have a pretty strong case. Both parties appear to agree that TNT tabled the same financial package as Amazon Prime, which should entitle them to preference in the bidding process.

However the offer is not simply a financial matter. Amazon is proposing to make all games solely available on its streaming service, which the NBA believes has a greater reach that TNT’s platform. Furthermore Amazon’s proposal will see them pay the first three years up front, while Warner Bros’ Discovery (TNT) has only provided a three-year line of credit.

“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 explained.

Much of the dispute between the NBA and TNT is a result of a significant shift in the way that Sports are consumed. When the most recent deal was signed in 2013, streaming played a relatively minor role in the broadcasting landscape and was not explicitly included in TV deals. This has added a new complication to the situation, one that could mean that TNT sees out the final year of its NBA deal locked in a bitter legal dispute with the league.