Washington: Warner Bros., Discovery and the NBA have settled a contentious legal dispute over broadcast rights, marking a significant shift in their long-standing partnership.

Under the terms of the new agreement, Warner Bros. Discovery will continue its coverage of NBA content, but focus on digital platforms and international markets, according to Variety, offering US TV game rights to competitors.

The 11-year agreement resolves a lawsuit that Warner filed against the NBA after the league decided to exclude the media giant from its new broadcasting arrangement.

The NBA’s new TV rights package, which includes Disney’s ESPN, Amazon and NBCUniversal, left Warner on the sidelines for its home game broadcasts, which it has run since 1989.

Despite this, according to Variety, Warner Bros. Discovery will retain the rights to feature NBA highlights and content through its Bleacher Report and House of Highlights platforms.

Additionally, the company will continue to distribute NBA games in international markets, including Northern Europe and parts of Latin America, although Brazil and Mexico will remain outside its coverage area.

The agreement marks a change in Warner’s strategy, as the company places a greater emphasis on digital and international NBA content.

According to Variety, Warner’s new agreement with the NBA will allow the company to manage the league’s digital properties, which it has done for more than three decades, according to sources familiar with the matter.

This includes continuing to provide NBA highlights and digital coverage to a global audience.

While Warner loses the lucrative rights to broadcast NBA games in the US, the deal provides the opportunity for significant international exposure, especially in regions where the NBA’s popularity continues to grow.

According to Variety, a source estimates that Warner Bros. Discovery could make up to US$100 million in profits over the first five years of the new agreement, as its international distribution and digital media coverage take center stage.

In a separate arrangement, Warner Bros. Discovery has struck a deal to make its popular “Inside the NBA” studio show available to ESPN during key points of the NBA season.

The collaboration will allow ESPN to leverage Warner’s expertise and iconic personalities such as Charles Barkley and Shaquille O’Neal as part of its comprehensive NBA coverage.

Variety reported that the new deal also expands Warner’s sports footprint with the rights to broadcast Big 12 football and men’s basketball games, marking a new chapter in the company’s sports broadcasting efforts.

“Inside the NBA”, which remains a staple of Warner’s NBA programming, will also be considered for expansion into other sports as Warners looks for new avenues for the show’s reach.

This agreement will help Warner avoid a lengthy and costly legal battle with the NBA. Without a resolution, both sides faced a potentially lengthy court battle that could extend into next season.

While NBA executives were confident they would prevail in the courts, the legal drama could weaken the relationship between the two, causing Warner to lose access to a major revenue source.

Warner’s cable operations, particularly its flagship TNT network, have long relied on NBA broadcasts to drive advertising sales.

According to Variety, NBA games accounted for TNT’s top programming in 2023, making the loss of domestic broadcast rights a blow to its revenue stream.

Warner had already taken a hit as early as 2023, reportedly writing off US$9.1 billion of its TV assets, including the expected loss of NBA game broadcasts when the NBA’s new TV contract begins next season .

Despite the setback, Warner retains valuable sports rights, including the French Open, NASCAR and the College Football Playoff (CFP), and is securing deals that help diversify its sports portfolio amid the changing media landscape.