The recent verdict in the Sunday Ticket case could have significant consequences for the NFL. If the Sunday Ticket provider is allowed to charge any price, it could result in a loss of over $14 billion and changes to TV revenue streams. There is also a possibility of a negative impact on the NFL’s credit rating, currently in the range of A to A+. Fitch Ratings will closely monitor the case going forward.
The size of the jury’s award is significant, even considering the NFL’s massive revenue strength. If the verdict stands, teams will be responsible for over $440 million each, which is more than twice the annual operating income for most NFL teams, except the Cowboys. This situation highlights the potential difficulties some teams may have in coming up with $440 million. It could lead to more borrowing or the sale of minority interests in the teams.
The appeal process will provide time for the NFL to figure out how to pay the money, and there is a possibility that they will win it back. If not, teams will have to find a way to pay up, potentially facing challenges in balancing Sunday Ticket revenue against Sunday afternoon broadcast revenue. This will become more complex if they are required to sell Sunday Ticket rights to a provider that can set prices independently.
