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The following is a pre-recorded program.

Now, does Warner Brothers Discovery have a case?

They filed a lawsuit against the NBA over what they said was the league's unjustified rejection of the company's matching rights proposal earlier in the week.

And this matching rights clause is effectively this.

If at the end of the contract, an offer comes in, or I'm going someplace else, or you're going someplace else, or a business is going someplace else.

The contract holder has the right to match the other offer and you have to stay.

And that is this lawsuit that Warner Brothers says that the NBA refused to honor their match.

Warner Brothers shells out about $1.2 billion annually for the rights to these games,

and that's the rights to the NBA game, and that expires at the end of next season.

And under the terms of the 2024 slash 2025 season, the company maintains a rights package

that includes 64 regular season games, at least 30 playoff games.

I mean, this is, let's just say it's pretty impressive and very expensive and makes a lot of money.

So TBS, the subsidiary of Warner Brothers, let's call it Warner Brothers.

And here is what the complaint reads.

Warner Brothers has a vested interest in maintaining these distribution rights,

and it's carefully developed 40-year brand.

On top of the billions of dollars that pays the NBA for distribution rights,

Warner's has invested hundreds of millions of dollars in production, talent,

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