ESPN is now a defendant in a proposed class-action lawsuit against WWE. Remarkably, the network asked for that role.
What We Know: According to Sportico, U.S. Magistrate Judge Thomas O. Farrish granted ESPN’s motion to intervene in Diesa & Toback v. WWE. Plaintiffs Michael Diesa and Rebecca Toback accuse WWE of violating Connecticut’s Unfair Trade Practices Act. Specifically, their dispute centers on WWE’s move of premium live events from Peacock to ESPN’s new direct-to-consumer service. According to the complaint, costs jumped from $11 monthly to $29.99, and later $35.99.
What’s At Stake: Now with ESPN’s involvement, it’s a more collaborative approach between the two partners in their defense. If the case heads to arbitration, likely both parties will negotiate with the plaintiffs. It should be noted that the Disney+, ESPN and Hulu subscriber agreement contains an arbitration provision plus a class-action waiver. If enforced, that provision could result in the claims being compelled to arbitration, a private dispute resolution process, rather than litigated in court.
What Remains Unclear: However, both WWE and ESPN now point to the same arbitration clause. It’s unknown how quickly ESPN’s involvement will move the case towards a resolution.
What It Means: Ultimately, ESPN secured a seat at the table to protect its arbitration rights. More broadly, live sports continue migrating to streaming platforms. Consequently, executives’ pricing promises could face growing legal scrutiny. Likewise, arbitration clauses may become a key shield for sports media companies.
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