NBA, Warner Bros. Discovery agree to settle lawsuit over live game rights – DOC Finance – your daily dose of finance.

NBA, Warner Bros. Discovery agree to settle lawsuit over live game rights

Warner Bros. Discovery has agreed to cease its pursuit of owning a package of live National Basketball Association (NBA) games in the U.S. for the 2025-26 season and beyond, thereby resolving all legal disputes with the league. The company had filed a lawsuit against the NBA in July, alleging that the league did not allow it to exercise its matching rights on a package of live games.

The NBA had chosen Disney, Comcast’s NBCUniversal, and Amazon Prime Video as its U.S. distributors of live games for the next 11 years, with the deal’s total worth, including WNBA games, estimated at around $77 billion. The settlement with Warner Bros. Discovery, announced recently, along with a separate agreement between WBD and ESPN, will enable the company to retain some NBA content, production partnerships, and licensing deals. However, it marks the end of Turner Sports’ four-decade-long relationship with the NBA as a live games carrier in the U.S. after the current season.

Turner Sports has held an NBA package since 1984, with games airing on TNT since 1988. The NBA’s decision to move away from Warner Bros. Discovery as a media partner was influenced by various factors, including doubts about the long-term viability of cable TV for reaching a younger audience. Disney and Comcast have broadcast networks for showcasing NBA games, while Amazon’s package is focused on streaming.

The terms of the settlement grant WBD’s TNT Sports free access to highlights for its Bleacher Report digital news site and House of Highlights social media platform for the next 11 years. Additionally, Warner Bros. Discovery can license, create, and distribute new and existing NBA content across its media assets, including live game rights in certain regions. The agreement also extends a partnership between NBA Digital and TNT Sports for five seasons, allowing the NBA to engage Warner Bros. Discovery for various services.

The settlement secures years of guaranteed revenue for Warner Bros. Discovery from the NBA. TNT’s popular show “Inside the NBA” will be licensed to Disney’s ESPN and ABC for premier NBA games, while TNT Sports will continue producing the show with its current hosts. The deal also includes provisions for potential new content development for Warner Bros. Discovery’s platforms.

The partnership between Disney and Warner Bros. Discovery extends beyond the NBA, with collaborations on streaming services and a joint venture called Venu. As part of the settlement, ESPN will allow TNT to televise Big 12 football and men’s basketball games, providing more linear TV exposure for the conference.

The agreements reached ensure the continuation of TNT’s “Inside the NBA” and are seen as valuable for the entire portfolio of Warner Bros. Discovery. NBA Commissioner Adam Silver expressed optimism about the partnership with TNT Sports and the promotion of NBA content across various platforms.