The NFL is facing a massive $14.088 billion verdict due to the Sunday Ticket class action lawsuit. Here’s a simplified breakdown of what this verdict means and how it impacts the league and its players:
Key Points of NFL’s $14.088 Billion Verdict:
1. Verdict Details
- Original verdict: $4.696 billion.
- By law, this amount triples to $14.088 billion.
- The NFL alone is responsible for this payment; no revenue shared with the NFL Players Association (NFLPA) will be used.
2. Impact on Teams
- The money for the verdict will come from the 32 NFL franchises’ funds.
- This is good news for players, as their earnings from shared revenues are not affected.
3. Background on Sunday Ticket
- Sunday Ticket is a package that allows fans to watch out-of-market NFL games.
- The lawsuit claims that the NFL’s pricing protected CBS and Fox’s investments by discouraging fans from buying Sunday Ticket, making them watch games on local TV instead.
4. Future Revenue Concerns
- Any changes resulting from this verdict might impact future revenues.
- Both the league and the players share revenue from TV deals, so a reduction in TV revenue could hurt players’ earnings.
5. Potential Changes
- The NFL plans to appeal the verdict, potentially up to the U.S. Supreme Court.
- If the NFL wins the appeal, the payment won’t be necessary, and the current model might stay unchanged.
- Even if they lose, public pressure and media scrutiny could force the NFL to adjust Sunday Ticket’s pricing and availability.
6. Possible Adjustments
- Making Sunday Ticket cheaper and more flexible, as ESPN suggested.
- Dividing the package among various channels on cable, satellite, or streaming platforms, an idea the league considered in 2017.
7. Revenue Impact
- If changes are made, it’s uncertain whether the NFL will earn more or less money.
- The popularity of football, which attracts large audiences, suggests that the league will find a way to maintain or even increase its revenue.
Conclusion
The NFL is facing a significant financial challenge with the $14.088 billion verdict. While the players’ current revenues are safe, potential changes to the Sunday Ticket package could impact future earnings. The outcome of the appeal and the league’s response to public and media pressure will determine the future landscape of NFL broadcasting and revenue.
Read More: NFL Makes Big Changes in their Rules for Playoffs.