The multi-billion-dollar verdict in the antitrust NFL Sunday Ticket lawsuit could have a big effect on NFL teams. It won’t hinder the NFL salary cap, but the owners will still take a hit.
Mike Florio of Pro Football Talk reports that the final payment, if any, in the Sunday Ticket case will be spread equally among the 32 teams at a whopping $450 million per team.
This potentially could lead to cut costs, especially in the scouting department. That’s a big worry for Senior Bowl director Jim Nagy.
“Unfortunately, I think it’s going to cost a lot of people their jobs, including scouts. Each owner will be on hook for almost $500M so you know they’re going to look to trim staff,” Nagy wrote on X.
Unfortunately, I think it's going to cost a lot of people their jobs, including scouts. Each owner will be on hook for almost $500M so you know they're going to look to trim staff.
— Jim Nagy (@JimNagy_SB) June 30, 2024
The Sunday Ticket lawsuit claimed the league broke antitrust laws by selling its package of Sunday games at an inflated price. The NFL will contest the decision.
“We are disappointed with the jury’s verdict today in the NFL Sunday Ticket class action lawsuit,” the league said in a statement issued to Pro Football Talk and other outlets. “We continue to believe that our media distribution strategy, which features all NFL games broadcast on free over-the-air television in the markets of the participating teams and national distribution of our most popular games, supplemented by many additional choices including RedZone, Sunday Ticket and NFL+, is by far the most fan friendly distribution model in all of sports and entertainment. We will certainly contest this decision as we believe that the class action claims in this case are baseless and without merit. We thank the jury for their time and service and for the guidance and oversight from Judge Gutierrez throughout the trial.”
It likely will be several years until a final ruling occurs. Florio believes the NFL is going to take it to the Supreme Court if they have to. In the grand scheme, if the decision ultimately goes through, it won’t be a drastic hit for NFL owners. Most of them are multi-billionaires. But it could have a trickle-down effect, as Nagy mentioned.
Pittsburgh Steelers owner Art Rooney II is incredibly wealthy, but outside of being a lawyer, his only business venture is owning the team. In NFL terms, he’s on the “low end” among NFL owners. Unlike most teams, the Steelers operate the organization like a family, so Rooney probably won’t be as cutthroat if he has to payback $450 million in the lawsuit. At the same time, however, it could create some difficult decisions.