A jury ruled yesterday that the NFL can be held liable in a class-action lawsuit filed against it for violating anti-trust laws pertaining to its NFL Sunday Ticket platform. The verdict results in the league owing $4.696 billion, which according to Mike Florio is significantly higher. And that is as bad news for the Pittsburgh Steelers as it is for the other 32 teams.
As Florio also confirmed, all 32 teams will be equally responsible for paying the damages in this case. Under antitrust laws, the NFL will owe $14.088 billion, unless it wins an appeal. A judge could also reduce the amount owed. But as it stands, the Steelers and every other team will have to pay $440.25 million for their part.
As of last year, the Steelers as a franchise were worth $4.625 billion with an annual revenue of $548 million. Writing these checks, if it comes down to that, will hurt. But don’t let that fool you into thinking it affects the game. Regardless of what the NFL or the individual teams may attempt to argue.
As confirmed by Andrew Brandt, the ruling has nothing to do with the salary cap. The cap is determined proportionally based on revenue, and Brandt points out that legal damages are not a part of that equation. This will come out of the pockets of the Steelers’ owners, and they have some wealthy owners. None of these franchises are going to fold.
In the case, the NFL attempted to argue against a team-specific NFL Sunday Ticket package on the grounds that it would negatively affect the salary cap. The league failed to make an even remotely convincing argument for that, and it can’t when it comes to legal damages.
But the financial trajectory of the NFL is quite clear, and owners are only getting richer. More and more money is coming in every year, and the salary cap will continue to rise. NFL games are still the most marketable product in the country, and the Steelers are still a premier draw. And let’s not forget their plans to add an 18th game to the season, further driving up revenue. In doing so, they will also further drive up the salary cap.
Not that the fans should overly concern themselves about the salary cap, because all teams are subject to the same cap. Cap disparities are largely a thing of the past now that teams have to spend up to a certain percentage. And they also have to spend a certain percentage of cash during any particular accounting period.
So ultimately, what does this mean for Steelers fans, and NFL fans in general? Probably nothing if you’re an in-market fan. In the best-case scenario, the ruling may eventually coerce the NFL into offering a team-specific product. That would benefit out-of-market fans by making it more affordable to watch the Steelers games (legally) outside of a bar.
And Steelers fans also won’t have to worry about finding the money to pay George Pickens, assuming he earns it. Nobody is going to go into financial straits over this. And the way things usually go, if the NFL actually pays anything close to this amount, it would be a surprise. But this is where we stand for now.
