The recent verdict in the Sunday Ticket case could have far-reaching implications for the NFL. If the Sunday Ticket provider is allowed to charge any price it wants, this could impact the league’s credit rating. Currently rated as A to A+, an upheld $14 billion verdict could influence how lenders view the NFL, according to Fitch Ratings.
The jury awarded $14 billion in damages after finding that DirecTV, which was the Sunday Ticket provider, had infringed on the exclusive rights of NFL teams to sell their own video content. This decision has significant financial implications for each NFL team, with each team responsible for over $440 million if the verdict is upheld. This amount is more than twice the annual operating income of every NFL team except the Cowboys.
This financial burden could pose challenges for some teams in meeting their financial obligations, potentially leading to more borrowing or selling minority stakes in the team. However, there is some good news for the league – they have the opportunity to appeal the verdict and buy more time to determine how to pay the money. While there is a possibility that they could win this appeal, if they don’t, they will need to find ways to come up with
