Sunday Ticket ruling could impact NFL credit rating

Last week’s ruling in the Sunday Ticket case will have many potential implications for the NFL. In addition to the potential loss of over $14 billion and potential changes to TV revenue streams if/when the Sunday Ticket provider is free to charge whatever price it chooses, the NFL could see a negative impact on its credit rating.

The score currently ranges from A to A+. If the league ultimately loses in court and the $14 billion verdict is upheld, it could affect how lenders view the league.

Via Ben Fischer from Sports Business MagazineFitch Ratings will continue to monitor the matter closely.

“The size of the award the jury makes is of great significance, even considering the NFL’s enormous revenues,” Fitch wrote.

If the verdict stands, teams will be responsible for more than $440 million per team. As Fischer notes, that’s more than twice the annual operating revenue of every NFL team except the Cowboys.

That fact only confirms our recent point that some teams may have a hard time coughing up the $440 million. It could lead to more borrowing or perhaps the sale of a minority stake in the team.

The good news for the NFL is that the appeals process will buy time to figure out how to pay the money, and the NFL will most likely win.

If that doesn’t happen, teams will have to dig deep into their pockets to pay, and the league as a whole could face challenges in balancing the maximum revenue from Sunday Ticket broadcasts with the maximum revenue from Sunday afternoon broadcasts. This could happen if the league is forced to sell the rights to Sunday Ticket broadcasts to a provider that sets the price of the package as it sees fit, without any pressure from the league office.