WBD / TNT Sports made yet another claim against the NBA, this time suggesting that the league put a series of “difficult or vague” contract provisions to make it impossible for the company to exercise its same rights.
“The NBA is doing everything it can to frustrate [WBD’s] matching ability offered by Amazon. And when that strategy failed, the NBA simply ignored its obligations and refused [WBD’s] game,” TNT/WBD said in a filing in New York State Supreme Court – where the case is being heard.
A set of TNT rights is estimated to be worth more than $1.8 billion annually between 2025-36. Coverage includes the conference finals every other season, early playoffs similar to what is currently on NBA TV, weekly regular season coverage, the Emirates NBA Cup, WNBA rights and other assets.
WBD suspects that the NBA’s poison pills are: (by Front office sports)
- “NFL cross-promotion: WBD says “Amazon’s offer required NBA games to be shown on a site that shows NFL games—even though the NBA knew the plaintiffs didn’t own the NFL rights.”
- Escrow requirements: WBD says it was asked to fund a $3.2 billion escrow requirement within five days of signing the deal “when the NBA knew WBD only had ~$2.98 billion in cash.” The company went on to say that “the cash-out requirement was a game because the NBA enjoyed unlimited discretion to exempt Amazon from it.”
- Credit rating and damages: WBD says the NBA would be allowed to terminate the rights “if S&P or Moody’s were to reduce WBD’s credit rating below a certain threshold, and recover up to $4.5 billion in liquidated damages.” WBD’s downgrade is more likely than Amazon’s given the relative size and health of both companies. “
We haven’t heard the last of the NBA/WBD feud, so stay tuned.
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