As YouTube gears up to stream a major NFL game for free on September 5, it’s making headlines for a different reason — hiring a key executive from Disney. This move has sparked legal action from Disney, who has now filed a lawsuit against YouTube and the former executive, Justin Connolly.
Disney claims breach of contract
You may recognise Justin Connolly from his long career at Disney and ESPN, where he spent over 20 years. Most recently, he was overseeing Disney’s streaming services and media networks. Now, he’s been named YouTube’s global head of media and sports, a role that puts him in charge of managing YouTube’s relationships with media companies and leading its live sports strategy.
However, Disney says Connolly wasn’t supposed to leave. According to a lawsuit filed in California Superior Court, Connolly had signed a three-year contract in January, committing him to remain at Disney until at least March 1, 2027 — unless terminated early under specific conditions. The complaint argues that YouTube “induced” Connolly to break that contract by offering him a role while he was still leading negotiations between Disney and YouTube.
In its complaint, Disney points out that Connolly was central to the current talks with YouTube over a licensing agreement and had in-depth knowledge of Disney’s distribution deals and negotiation strategies. Disney believes that his departure, particularly to a rival company, could cause serious damage to its business.
“Connolly has intimate knowledge of Disney’s other distribution deals, the financial details concerning Disney’s content being licensed to YouTube, and Disney’s negotiation strategies,” the complaint states. “It would be extremely prejudicial to Disney for Connolly to breach the contract he negotiated just a few months ago and switch teams when Disney is working on a new licensing deal with the company trying to poach him.”
YouTube has not responded publicly to the legal claims.
YouTube strengthens its position in sports
This legal row occurred when YouTube rapidly expanded into the sports broadcasting world. Its live TV streaming service, YouTube TV, has grown to more than 8 million subscribers. In 2023, it added the NFL Sunday Ticket package, further cementing its place in live sports.
By hiring Connolly, YouTube reinforces its strategy to work more closely with media companies and secure major sports broadcasting deals. His experience at Disney, particularly with ESPN and streaming services, makes him a valuable asset.
Earlier this year, YouTube also revealed a surprising trend: more people now watch YouTube on their TVs than on their phones. This shift shows the platform’s growing dominance in traditional TV spaces, especially as more viewers turn to streaming services for live sports.
Streaming services compete for sports rights
The fight for sports content isn’t limited to YouTube. Other major tech and streaming companies are also investing heavily in live sports. Amazon is preparing to stream NBA games and the popular “Inside the NBA” programme next season. Apple continues building partnerships with Major League Baseball (MLB) and Major League Soccer (MLS). Even Netflix is stepping into the live sports space, having streamed NFL-related content and other sports events.
With the lines between traditional broadcasting and streaming continuing to blur, companies are racing to secure the rights to big sporting events. For Disney, losing a key executive with deep knowledge of its strategy couldn’t have come at a worse time—just months ahead of the launch of its standalone ESPN streaming service.
This lawsuit could begin a new chapter in the rivalry between traditional media giants and fast-growing tech platforms like YouTube.
