JOIN OUR WHATSAPP CHANNEL
TNT's Parent Company Claims NBA Deployed Unethical Tactics in USD 76 Billion Media Rights Dispute with Amazon
TNT's parent company alleges that the NBA used unethical tactics during the $76 billion media rights dispute with Amazon, raising serious questions about integrity in negotiations. Read more.
Warner Bros. Discovery (WBD), the parent company of TNT, has accused the NBA of inserting "poison pills" into its recent $76 billion media rights deal to hinder competition from other companies. The NBA recently completed an 11-year media rights agreement with Disney, NBCUniversal, and Amazon.
WBD, which operates TNT—a long-standing partner of the NBA previously stated that the NBA rejected its $1.8 billion-per-year offer, which was intended to match Amazon's bid. The NBA claimed that WBD's proposal did not meet the required conditions, prompting WBD to accuse the league of unfair treatment. In court filings, WBD alleged that the NBA intentionally added difficult clauses to Amazon's deal, making it almost impossible for WBD to match the offer.
According to WBD, "The NBA falsely claims that TBS failed to match certain terms of Amazon’s offer terms the NBA included as poison pills to prevent TBS from matching." WBD originally signed its NBA rights deal under the Turner Broadcasting System (TBS) name in 2014.
"TBS had no obligation to match terms like escrow, credit rating requirements, liquidated damages, and cross-promotion," WBD stated, "but TBS matched them anyway, offering commercially reasonable alternatives.”
WBD faced several obstacles in its media rights negotiations with the NBA. One major issue was the requirement for cross-promotion with NFL games, which WBD could not meet due to its lack of NFL broadcasting rights. WBD also highlighted an escrow clause that demanded they deposit $3.2 billion within five days of signing, though they had only about $2.98 billion in cash. They called the escrow demand a "farce," claiming the NBA had the discretion to waive it for Amazon.
Additionally, WBD expressed concern about a contract clause that allowed the NBA to terminate the deal if WBD’s credit rating dropped below a certain level, potentially triggering a $4.5 billion termination fee. WBD argued this posed a significant risk due to its weaker financial position compared to Amazon, accusing the NBA of acting in bad faith.
Poison pills, such as these clauses, are often used as defense strategies to make deals less attractive to potential buyers. WBD’s legal team accused the NBA of never intending to allow it to match Amazon's offer fairly.
"The NBA never intended to allow TBS to match the Amazon offer," WBD's lawyers stated, according to Awful Announcing. Even before the lawsuit, key TNT personalities, including Charles Barkley, expressed doubts about the fairness of the process, believing the NBA had favored Amazon from the beginning. Barkley said, "Clearly the NBA has wanted to break up with us from the start. I’m not sure TNT ever had a chance."
Losing the NBA broadcasting rights marks a significant blow for WBD, which owns TNT. TNT, which has aired NBA games since 1988, now faces uncertainty over its popular show "Inside the NBA," featuring Barkley, Shaquille O'Neal, Kenny Smith, and Ernie Johnson.
ALSO READ: Former Clippers Player Opens Up About Paul George's Transition to Philadelphia 76ers: 'I was glad'
Latest Articles
