The NFL has recently found itself in a political pickle regarding its broadcast antitrust exemption. As explained by Eriq Gardner of Puck, the situation could eventually put streamers in a jackpot.
Apart from the ongoing efforts of the FCC, Congress, and the Department of Justice to twist the NFL’s antitrust tail, the pending Sunday Ticket case in California could become a tangible example of the potential mess that could arise for a non-broadcast network that ends up in the wrong place at the wrong time.
Beyond the possibility for a $14 billion judgment against the NFL, a court order could prevent the league from continuing to offer Sunday Ticket as a package sold by the league. What would that mean for the company that has paid billions for the rights?
There’s also a possibility of litigation against the streaming company, under the theory that it conspired with the NFL to violate the antitrust laws. (DirecTV avoided that fate in the Sunday Ticket case, thanks to a broad arbitration provision in its service agreement.)
There’s a silver lining for streaming companies. If the courts ultimately find that the NFL can’t sell games in a bundle to pay-TV interests (cable, satellite, streaming), the streamers could buy rights to games from teams directly.
For the league, that would still be a mess. Some teams would get much more than other teams. Revenue sharing would be compromised. The salary cap (a creature of the antitrust exemption that arises under the collective bargaining rules) would increase the profit margin for the teams that make the most money from streaming deals and decrease the profit margin for the teams making the least.
The status quo is best for the league’s overall interests. And there’s a long way to go before chaos would ever emerge. Still, after decades of the possibility not even being a threat, it currently is.
