The collection of capitalists who have capitalized their way to multi-billion-dollar fortunes continues to act like a group of socialists in one very important way.
When it comes to TV revenue, they share all money equally.
During the Sunday Ticket trial, the NFL tried to suggest that a rejection of collective action regarding the pricing of the out-of-market page would be the first domino leading to massive disparity in team revenues, implosion of the salary cap, destruction of competitive balance, and an existential threat to the league’s entire existence. That would happen, presumably, if/when the various teams are required to sell out-of-market packages on their own, with the Cowboys generating far more than the Bengals (as Jerry Jones testified) — along with the rest of the league.
But there’s an important flaw in this argument. It’s hiding in plain sight, in the NFL’s Constitution and Bylaws.
Article X, Section 3: “All regular season (and preseason network) television income will be divided equally among all member clubs of the League regardless of the source of such income, except that the member clubs may, by unanimous agreement, provide otherwise in a specific television contract or contracts.”
They’ve already decided to share everything, even if they have to sell the rights individually. And it can only change with “unanimous agreement.” There’s no way every small-market team (including the Bengals) will agree to let Jerry Jones keep all the money he gets from his team’s out-of-market package.
The only question is whether the NFL’s teams would get as much or more by selling the out-of-market package on a team-by-team basis than they currently get from selling the rights as a unit.
Of course, the sharing of the revenue could still be a problem under the antitrust laws. The goal is to promote competition among 32 independent businesses. If the hunters gather at the fire to share the meat, they’re really not competing during the hunt.
Still, it’s far more subtle and obscure than the problems that led to the current $14 billion predicament, one that will lead to more and more liability until the NFL allows the Sunday Ticket partner to sell whatever it wants.
Before it ever comes to that, the league will push aggressively for a win. They’ll argue their position for judgment as a matter of law on July 31. They’ll appeal the loss (if they lose) to every level of the federal court system that they can.
It will take three or four years for the final gavel to fall, and for the antitrust dust to settle. Even if the end result requires all teams to sell their own out-of-market rights, the parade of horribles presented at trial will be more creatively-decorated birthday cake than Deathmobile for the NFL.
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