Warner Bros. Discovery sues NBA over game rights

Warner Bros. Discovery's (WBD) filed a lawsuit against the NBA after it rejected the media giant's matching offer to maintain the rights to broadcast and stream games after next season. Sportsimpacts CEO Patrick Rishe joins Asking for a Trend to break down the news and how it will impact the media giant.

"I suspect that ultimately one of two things will happen: Either the NBA will win this case and Discovery and Turner will no longer cover NBA games after this season Or, there could be some compromise and maybe a fourth tier of games is packaged to allow them to come back in and still be part of the equation," Rishe explains. He calls WBD passing on making a bid in the first place a "calculated risk" — especially as the NBA "recognizes that streaming is the future in bringing in younger fans." With this emphasis on streaming, Rishe suspects that it was the primary motivation for going with the Amazon (AMZN) bid.

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This post was written by Melanie Riehl

Video transcript

Final question, Patrick switch gears just a bit on the Warner Brothers.

You saw Discovery Pa Patrick, you saw that news file a lawsuit against the NBA today.

Uh What it says was the league's unjustified rejection of the company's matching rights proposal or the week.

I'm just curious to get your take, Patrick.

What, what you made of this?

What do you think the impact of all this is going to be?

Well as we all know, lawyers definitely, um they make their money getting into the, the specifics uh and the, and the wording and the language of these contracts.

Uh I suspect that ultimately one of two things will happen, either uh the NBA will win this case and, uh and, and, and uh Discovery and Turner will no longer uh cover NBA games after this season or there could be some uh compromise and maybe 1/4 tier of games as packaged to allow them to come back in and still be part of the equation.

But um I think it was a calculated risk on Turner's part to again, uh a pass on, on making a bid in the first place and again, the NBA re recognizes that streaming is the future and bringing in younger fans.

And that's the reason why they wanna go with the Amazon bid and what, what uh discovery has offered just isn't the same in terms of the package that they are willing to put out there.

So ultimately, I do think either the NBA wins on this and Turner goes away or 1/4 avenue of, of games will be created and they would still be able to keep their foot in the door.

Patrick.

Always so great to have you on the show.

Thanks for taking the time to chat.

Thank you.