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 [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,” TNT/WBD stated in a filing with the Supreme Court of the State of New York – where the case is being heard.
TNT’s 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 what’s on on NBA TV right now, weekly regular-season broadcasts, the Emirates NBA Cup, WNBA rights and further assets.
WBD alleged the NBA’s 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 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.”
We certainly haven’t heard the last of the NBA / WBD feud, so stay tuned.
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