The recent verdict in the Sunday Ticket case has significant implications for the NFL, potentially resulting in a loss of over $14 billion and changes to TV revenue streams. 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.
Fitch Ratings will be closely monitoring the case moving forward due to the significant amount of the jury’s award. If the verdict is upheld, each team will be responsible for over $440 million, which is more than twice the annual operating income of every NFL team except the Cowboys. This could pose challenges for some teams in meeting this financial obligation, potentially leading to more borrowing or selling minority stakes in the team.
However, the NFL has the opportunity to appeal the verdict and buy more time to determine how to pay the money. While there is a possibility that the NFL could win the appeal, if it doesn’t, teams will need to find ways to come up with the funds. Additionally, the league may face challenges in balancing Sunday Ticket revenue with broadcast revenue if forced to sell the Sunday Ticket rights to a provider that can price the package independently from the league’s influence.