((HT: Sports Business Daily))Days after cancelling its 2009 season, the Arena Football League is facing legal action from its former television partner.
NBC has filed a lawsuit against the AFL "alleging that the league owes the network $1,597,320 in advertising revenue from broadcasts during the 2006 season," reports the Sports Business Journal.
During their four-year partnership from 2002-06, NBC and the AFL engaged in a revenue sharing agreement in which the league would "[collect] money from its sponsors and was required to pay NBC for those sponsors’ advertising units so that the network could recoup production costs and calculate the amount of net ad revenue the partners would share."
The suit alleges that the AFL ceased paying in 2006 after NBC told the league it did not want to renew the television deal for another season. (source Sports Media Watch)
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