June 6, 2024

Read in Browser [[link removed]]

POWERED BY

The NFL is in the midst of a complicated lawsuit potentially worth $21 billion and involving one of its prized media entities. … It’s been exactly one year since the PGA Tour and LIV Golf appeared to have struck a deal to work out their differences. … The NBA Finals tip off tonight with a record number of international players. … And Front Office Sports Today explores an evolving sports labor movement.

— David Rumsey [[link removed]] and Eric Fisher [[link removed]]

NFL Faces High-Stakes $21 Billion Antitrust Battle Over Media Rights [[link removed]]

Mark J. Rebilas-USA TODAY Sports

The NFL is now facing one of the most significant legal challenges in years to its existing media model, with a trial now starting in Los Angeles threatening to render billions of dollars in damages to the league and upend how it distributes out-of-market games.

Jury selection began Wednesday in a class action antitrust case nearly a decade in development, advancing on appearances [[link removed]] in other courts before ultimately reaching the U.S. District Court. A group of more than 2.4 million residential and 48,000 commercial subscribers to NFL Sunday Ticket on DirecTV is asking a jury to find the league liable and award them as much as $7 billion in damages. That figure would then be tripled under federal rules, resulting in potentially a bill reaching $21 billion for the NFL.

The plaintiffs allege the current NFL Sunday Ticket structure artificially drives up prices, and point to costs now starting at $349 per year for the residential packages [[link removed]]. If they prevail, NFL teams could be freed to strike their own individual and market-specific out-of-market rights deals, and consumers would likely get the ability to purchase individual games or team-specific packages. The league, conversely, is likely to present NFL Sunday Ticket as a premium-level product expanding consumers’ access to games.

The case could also result in key figures such as NFL commissioner Roger Goodell (above, left), Cowboys owner Jerry Jones, Patriots owner Robert Kraft (above, right), and former CBS Sports chairman Sean McManus being called to testify, potentially opening a rare window into the inner workings of how the league develops key business contracts such as this one.

The case also highlights some of the uniqueness of how the NFL manages its media rights. Some other major leagues have moved to create team-specific options for their out-of-market game packages. But the NFL has not allowed that, and that has continued even as the residential portion of NFL Sunday Ticket has moved [[link removed]] to YouTube. The streamer is not a defendant in the lawsuit, and related claims against DirecTV are on hold pending arbitration.

The YouTube deal is worth $14 billion over seven years, creating a situation that if a significant award is made to the plaintiffs, the economic value of that deal could essentially be negated.

Potentially Messy Situation

One possible scenario, however, is still a last-minute settlement. That’s because the dispute also sets up another test of the NFL’s tolerance for possibly embarrassing public disclosures.

In a trial setting, powerful figures such as commissioners and team owners are no longer in control, and it’s a dynamic the NFL and other major leagues have often sought to avoid, and why they often prefer in-house structures to resolve various disputes and render discipline.

To that end, the NFL’s $820 million settlement [[link removed]] with St. Louis officials over the Rams’ relocation to Los Angeles was struck about six weeks before a scheduled trial there.

One Year After ‘Merger,’ the PGA Tour and LIV Golf Still Remain Far Apart [[link removed]]

The Columbus Dispatch

This weekend, 125 of the world’s top golfers will be competing for $45 million in prize money. The problem is they won’t all be playing against one another.

The PGA Tour’s Memorial Tournament in Ohio and LIV Golf’s Houston event will perfectly showcase the ongoing divide in the men’s professional game—one that was supposed to be headed toward a solution 12 months ago. Thursday marks one year since the PGA Tour and LIV’s financial backer, the Public Investment Fund of Saudi Arabia, announced a bombshell framework agreement to unify golf.

Merger? What Merger?

Confusion was rampant in the days and weeks following that announcement. Players were stunned by the deal, which no one knew how to properly address. As PGA Tour commissioner Jay Monahan and PIF governor Yasir Al-Rumayyan broke the news on CNBC, a graphic read “LIV Golf to merge with PGA TOUR.” But in the aftermath, the PGA Tour continuously pushed back on any notion of a merger, pointing instead to the complex nature of the framework agreement.

Bumpy Road

In the wake of the PIF deal, following the PGA Tour has been a roller-coaster ride, to say the least. Tour executives were questioned [[link removed]] by members of the U.S. Senate. Rory McIlroy quit the Tour policy board (before later trying [[link removed]], unsuccessfully, to rejoin it). Jon Rahm led a wave of more defections [[link removed]] to LIV. The PGA Tour and PIF missed [[link removed]] a Dec. 31 deadline to reach a definitive agreement. A consortium of sports team owners invested [[link removed]] an initial $1.5 billion in the Tour’s operations, with players receiving [[link removed]] equity grants in the new company.

What Lies Ahead

As questions mounted about the PGA Tour–PIF deal last summer, it became clear that any meaningful change wouldn’t come until at least 2025, given the need to set ’24 schedules in due time. But now, it appears ’26 is the earliest golf fans should expect PGA Tour and LIV stars back together on a singular circuit.

Burning questions remain around what penalty, if any, LIV players will face in order to return to the PGA Tour; what will become of the LIV tour and its team format; and which executives will ultimately be in charge of the sport’s future.

SPONSORED BY WENDY’S

Wendy’s New $3 English Muffin Deal

[[link removed]]

With Wendy’s $3 English Muffin Deal [[link removed]], you get your choice of a tasty grilled sausage or applewood-smoked bacon English Muffin Sandwich with a fresh-cracked egg and gooey cheese. But wait! There’s more!

This breakfast wouldn’t be complete without a small side of crispy Seasoned Potatoes [[link removed]], which are truly worth waking up for. Oh, and did we mention you get all that for just three bucks? So, grab a proper breakfast with Wendy’s new $3 English Muffin Deal at your earliest, literally, convenience.

Limited time only. U.S. price and participation may vary. Select or request an English Muffin Deal [[link removed]] to obtain the discount. Not valid for à la carte or combo orders. Single item at regular price. Prices are higher in AK and HI.

FRONT OFFICE SPORTS TODAY Sports’ Next Big Labor Movement

David Richard-USA TODAY Sports

Coming off the success in unionizing minor league players and securing major pay and benefit increases, labor organizer and former minor leaguer Harry Marino is looking to do more. He is now the founder and president of Sports Solidarity, which seeks to organize workers in and around sports from coaches to stadium workers. He joins the show to explain what led to his success with minor leaguers, why he took issue with MLB Players Association’s leadership earlier this year, and the ambitious project he’s undertaking now.

🎧 Watch, listen, and subscribe on Apple [[link removed]], Google [[link removed]], Spotify [[link removed]], and YouTube [[link removed]].

ONE BIG FIG Expanding Borders

Bruce Kluckhohn-USA TODAY Sports

13

Number of international players on the Celtics and Mavericks combined, setting a new record for an NBA Finals matchup. Led by Luka Dončić (above) of Slovenia, the series also features players from Australia, Canada, the Dominican Republic, Germany, Latvia, Portugal, and Ukraine. This comes after a record 125 international players from 40 countries were on opening-night rosters for the start of the NBA season. The previous NBA Finals record was 10 international players in 2013, when the Heat beat the Spurs in seven games.

NBA deputy commissioner Mark Tatum previously told Front Office Sports [[link removed]] there was “no shortage of interest” from international markets wanting to host NBA games. And NBA commissioner Adam Silver has spoken publicly about exploring the possibility of an expansion franchise in Mexico [[link removed]].

TIME CAPSULE June 6, 1969: Broadway Joe’s Standoff

Malcolm Emmons-USA TODAY Sports

On this day 55 years ago: Jets quarterback Joe Namath (above) announced an intent to retire from football, less than five months after his historic triumph in Super Bowl III that dramatically signaled the arrival of the AFL previously thought to be inferior to the NFL. Pete Rozelle, NFL commissioner, had expressed his concern about Namath’s part-ownership of Bachelors III, a New York nightclub that opened that spring and was believed to be a favored spot for mobsters. Namath was given an option of either selling his stake or being suspended, but instead he surprisingly quit, insisting he had done nothing wrong.

A tearful press conference attended by more than 200 reporters made major news, essentially representing the 1969 equivalent of Chiefs quarterback Patrick Mahomes suddenly retiring from football today. But the dispute would not last long. Following further meetings between Namath and Rozelle later that month and in early July, the star player agreed to sell his interest in Bachelors III. Later that month, he was back in the Jets’ training camp, continuing what would become a Hall of Fame career. But he still retained some bitterness over the episode, telling The New York Times [[link removed]] in 1985, “For the first time in my life, I realized that life isn’t fair.”

SPONSORED BY WENDY’S

[[link removed]]

Premier League club West Ham United’s London Stadium has been turned into a baseball venue for this weekend’s Phillies-Mets games. Watch the transition [[link removed]]. UConn women’s basketball coach Geno Auriemma will make $18.7 million from his new five-year contract extension. Check out [[link removed]] how that breaks down year to year. Scottie Scheffler is the betting favorite for this year’s Memorial Tournament, which teed off this morning from Muirfield Village Golf Club. If Scheffler wins he would take home $4 million, or 1.3 million Wendy’s $3 English Muffin Breakfasts, with the total purse listed at $20 million.

Breakfast Fun Fact

The Memorial Tournament at Muirfield Village in Dublin, Ohio, has a rich history, dating back to 1976. The tournament is dubbed “Jack’s Tournament,” after golf legend Jack Nicklaus, an Ohio native who founded the tournament and designed the course. Nicklaus, nicknamed the “Golden Bear,” inspired The Golden Bear Club, which serves breakfast from 7 a.m. to 10:30 a.m. ET daily during the tournament, offering a delicious menu that includes stuffed croissants with spinach and ricotta or ham and swiss, hash browns, and pastries.

Editors’ Picks Saudi Arabia, Likely World Cup Host, Slammed With Workers’ Rights Abuse Claims [[link removed]]by Margaret Fleming [[link removed]]The nation needs to build at least 10 stadiums to host. How the NCAA Plans to Stop Employment in Its Tracks After Settlement [[link removed]]by Amanda Christovich [[link removed]]NCAA will use House settlement to end the threat of employee status. Premier League Faces Legal Attack From Most Dominant Club [[link removed]]by Margaret Fleming [[link removed]]Manchester City argues independent reviews of sponsorships by owner-tied companies are unfair. Advertise [[link removed]] Awards [[link removed]] Learning [[link removed]] Video [[link removed]] Podcast [[link removed]] Sports Careers [[link removed]] Written by Eric Fisher [[link removed]], David Rumsey [[link removed]] Edited by Matthew Tabeek [[link removed]], Catherine Chen [[link removed]]

If this email was forwarded to you, you can subscribe here [[link removed]].

Update your preferences [link removed] / Unsubscribe [link removed]

Copyright © 2024 Front Office Sports. All rights reserved.

460 Park Avenue South, 7th Floor, New York NY, 10016