The World's Most Famous League Sued. The NBA Has a Problem

The World’s Most Famous League Sued. The NBA Has a Problem

As he announced, so he did. American media giant Warner Bros. decided to sue the American professional basketball league NBA over the contract for broadcasting games.

Warner Bros. on Ice

The game is about a broadcasting contract worth tens of billions of dollars.

As we wrote earlier, the NBA signed a deal this week to sell the television broadcast rights for the world’s best basketball league. They went to three broadcasters: Disney, Comcast (NBCUniversal) and Amazon. Thus, the aforementioned Warner Bros., which has been broadcasting the NBA for recent years, has been left out in the cold. However, the lawyers of the American giant have serious doubts about the process of selling broadcasting rights and believe that The NBA did not act in accordance with the law in this regard. and previously signed commitments. Warner Bros. claims that their previous agreement with the NBA guaranteed them the right to match the competition’s offer, which would also guarantee the extension of the broadcast rights agreement for subsequent years.

We believe that not only have our rights under prior agreements been violated, but these actions also violate the rights of fans who have the right to watch the highest quality NBA broadcasts.

– says the statement of TNT Sports, which is part of Warner Bros.

According to market analyst Ross Benes, this promises to be an interesting trial that has never happened in America before.

Warner Bros. claims that it could have matched Amazon’s financial offer and thus, in accordance with previous agreements, retained the broadcast rights. However, the NBA explains that Amazon bought a package of online broadcasts, while Warner Bros. wanted to pay the same price for a package of traditional television broadcasts. This is an unprecedented case. The court will have to decide in the dispute between streaming and traditional television.

– Benes explains.

Another television market expert, Douglas Arthur of Huber Research, casts doubt on the profitability of the Warner Bros. dispute. According to him, even if the station won a broadcasting contract, it would not be able to make money from it. Amazon’s offer is $700 million higher than Warner Bros.’ previous contract. According to Arthur, the network is unable to increase revenues enough to cover the additional cost.

To cover the higher cost of the contract, the station would have to significantly increase revenue from advertising and subscriptions.

– enumerates Arthur.

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