The NFL once again found itself facing a significant threat to its unparalleled success, but this time, a judge seemed to work some magic and make a massive $14 billion judgment disappear.
The long-running Sunday Ticket litigation recently came to a head with a jaw-dropping jury verdict. The plaintiffs, including consumers, bars, and restaurants, were awarded $4.7 billion, which under antitrust law would have been tripled to a staggering $14.1 billion. For a league with annual revenues nearing $13 billion in 2023, that amount would have been a tough pill to swallow.
The initial public reaction was predictably dramatic, with speculations running wild. Some feared NFL teams would face financial strain, while others worried about the impact on the salary cap and player contracts. There were even predictions that the beloved Sunday Ticket model would collapse or be sold for a fraction of its value. In response to all the panic, one source calmly remarked, “please.”
However, in the unlikely event that teams were required to pay hefty damages, the impact would have been spread out over multiple years. The damages would not have been paid upfront with individual checks but rather deducted from the NFL’s annual distributions, which currently exceed $400 million.
If the initial verdict had stood, NFL teams likely would have weathered the storm without significant repercussions to the salary cap or player transactions. Business would have carried on as usual.
But before any appeals could be considered, the NFL made a bold move. On July 31st, league attorneys asked Judge Philip Gutierrez, who presided over the trial, to order a new trial, reduce the damages, or, in a last-ditch effort, set aside the verdict in favor of the NFL.
So, while the threat of a substantial payout loomed large, the NFL managed to evade a financial disaster for now. The legal battle may be far from over, but for the time being, the league has dodged a bullet.