Disney Sues YouTube for Poaching Exec With Deep ESPN Ties

A seemingly straightforward executive move in sports media has snowballed into a lawsuit between two titans.

ESPN parent company Disney has sued YouTube TV and longtime Disney exec Justin Connolly over his move to the Google-owned streamer to a newly created role as global head of media and sports. 

Connolly spent nearly three decades with Disney, beginning as a financial analyst and ultimately becoming one of the company’s most senior executives, most recently as president of Disney Platform Distribution, overseeing direct-to-consumer services and content agreements across entertainment, studios, and sports, and working closely with ESPN chairman Jimmy Pitaro. 

Just last week, Connolly attended the press briefing in New York City at which ESPN introduced its forthcoming direct-to-consumer service. 

Disney alleges that both YouTube and Connolly engaged in breach of contract, tortious interference of contractual relations, and unfair competition. The lawsuit, filed Wednesday in Los Angeles County Superior Court, claims Connolly signed a three-year employment agreement last November covering all of 2025–27, with a one-time termination right becoming effective March 1, 2027.

“YouTube committed intentional acts designed to induce Connolly to breach the employment agreement,” Disney said in the suit.

Amid the legal action, YouTube announced Connolly’s move internally Thursday. A former Disney executive source tells FOS Connolly “knows all of the economics of ESPN—his information is priceless,” which explains why Disney is so up in arms over his exit.

If completed, the shift carries plenty of implications. Already the distributor of the residential version of NFL Sunday Ticket, YouTube’s fast-growing sports ambitions can also be seen in a recent deal to carry the league’s return to Brazil on Sept. 5 with the Chiefs and Chargers.

That game is poised to set a league streaming record, and the free distribution there is aimed at tapping into YouTube’s massive global audience of more than 2.5 billion monthly active users. Connolly is set to build on that by leading YouTube’s partnerships with media companies and sports leagues, including for YouTube TV, the country’s largest internet-based television service.

Meanwhile, Disney has its own set of major initiatives, including the debut later this year of the ESPN DTC service, as well as several other major distribution agreements to complete—most notably with YouTube. Connolly was set to lead that negotiation for Disney before the move to join YouTube. To that end, Disney said in the lawsuit that Connolly’s news arrived at a “critical time” in his tenure there.

“It would be extremely prejudicial to Disney for Connolly to breach the contract which he negotiated just a few months ago and switch teams when Disney is working on a new licensing deal with the company that is trying to poach him,” the suit reads in part.

Connolly was a finalist to succeed John Skipper as ESPN’s top executive in 2018, with that job ultimately going to Pitaro.

Representatives for Disney and YouTube did not immediately respond to FOS requests for comment Thursday evening.