Warner Bros. Discovery has agreed to a settlement in its breach of contract lawsuit against the NBA, according to Joe Flint of The Wall Street Journal.
The suit was filed in July after the company was excluded from the league’s new broadcast rights deal. Under the settlement, which is expected to be announced in the next few days, Warner Bros. Discovery will be able to develop shows with NBA content for at least the next decade, sources tell Flint. The company can air those shows in the United States and in 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 be for cable and streaming markets, Flint adds.
The new media deal, which is worth nearly $80 billion over the next 11 years, grants 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 arrangement with Amazon Prime Video.
Flint states that legal discovery has started in the case, but it appears there will be no need for it to continue.
The settlement will cover 11 years, the same length as the new rights deal, according to Flint. It will allow Warner Bros. Discovery’s digital platforms, Bleacher Report and House of Highlights, to retain their access to NBA content. The company will also be permitted to continue running the league’s digital operations, including NBA TV.
Flint also reports that Warner Bros. Discovery has reached an agreement with Disney to license “Inside the NBA” to ESPN and ABC beginning next season. The show featuring Charles Barkley, Shaquille O’Neal, Kenny Smith and Ernie Johnson has become an immensely popular part of TNT’s coverage. Flint doesn’t specify if the hosts will be changing networks as part of the deal.
In addition, Flint hears that ESPN will sublicense Big 12 conference college football and basketball games to Warner Bros. Discovery that will be shown on TNT and the Max streaming service. Flint adds that Warner Bros. Discovery will rely on college football and NASCAR to help make up for the loss of live NBA games.