Warner Bros. Discovery has accepted a settlement in its breach of contract lawsuit against the NBA. The lawsuit, we recall, was filed last July after the company was excluded from the new agreement on the league’s broadcast rights. Under the deal expected to be announced in the coming days, Warner Bros. Discovery will be able to develop shows with NBA content for at least the next decade, according to an article by Joe Flint of the Wall Street Journal. The company will be able to broadcast these shows in the United States and parts of Northern Europe and Latin America, excluding Mexico and Brazil. Warner Bros. Discovery’s desire to still be associated with the league after losing the rights to telecast regular season and playoff games is an indication of how valuable the NBA is considered to the cable and streaming markets, Flint adds.
The NBA’s new media deal, worth nearly $80 billion over the next 11 years, gives broadcast rights to ESPN, NBCUniversal and Amazon.com. In its lawsuit, Warner Bros. Discovery claims the NBA violated a matching rights clause with TNT in favor of the new deal with Amazon Prime Video. The agreement has a duration of 11 years, the same as other operators. It will allow Warner Bros. Discovery’s digital platforms, Bleacher Report and House of Highlights, to maintain access to NBA content. The company will also be allowed to continue managing the league’s digital operations, including NBA TV. Warner Bros. Discovery has reached a deal with Disney to license “Inside the NBA” to ESPN and ABC starting next season. The show starring Charles Barkley, Shaquille O’Neal, Kenny Smith and Ernie Johnson has become an immensely popular part of TNT’s coverage. Flint does not specify whether hosts will switch networks as part of the deal.
