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In Judge Philip Gutierrez transferring $14.1 billion with the stroke of a pen, many around the NFL breathed a deep sigh of relief.
The prospect of each team coming up with $440 million to satisfy the verdict would have had widespread ramifications. (And, obviously, it still could, if the plaintiffs prevail on appeal.)
In the weeks after the $4.7 billion verdict was returned (by law, it would have been tripled), folks throughout the league’s overall infrastructure were realizing that paying it off wouldn’t be as simple as every owner writing a giant check and moving on. Even if there would have been no direct impact on the salary cap (and some owners were already plotting to spread the pain to players), plenty of teams would have been spending less.
For example, Packers quarterback Jordan Love will make, in all, $79 million this year under his new contract. That kind of cash flow would not happen in any year in which the Packers would have had to surrender $440 million for Sunday Ticket liability.
Likewise, there’s a salary cap and a salary floor. More teams would be congregating at the floor, if/when they have to pay the out-of-market piper.
Belts would be tightened elsewhere. Coaches would be paid less. Executives would be paid less. Other non-player employees would be paid less. Layoffs would happen. Even though the owners were responsible for the antitrust violation, they would have found a way to spread the consequences as broadly as possible. That’s just the way business works.
Thursday’s ruling doesn’t mean everything goes back to normal. Until the case is completely and totally over, the possibility of eventually having to pay the money looms. But the league has pivoted in one fell swoop from a position of extreme weakness to a position of extreme strength.
In turn, the plaintiffs are now in a position of extreme weakness. Even though the jury properly found (per the judge) that the Sunday Ticket distribution and pricing violates federal antitrust laws, those…
Source link : https://www.yahoo.com/news/sunday-ticket-ruling-good-nfl-131754727.html
Author : ProFootball Talk on NBC Sports
Publish date : 2024-08-02 13:17:54
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