23rd May, 2025 — The Walt Disney Company is taking legal action against tech giant Alphabet’s YouTube after the platform announced the high-profile hiring of veteran Disney executive Justin Connolly as its new global head of media and sports.
Disney filed a lawsuit in Los Angeles County Superior Court late Wednesday, alleging breach of contract, unfair competition, and intentional interference with contractual relations. The suit aims to prevent Connolly from assuming his new role at YouTube, arguing that the appointment violates the terms of his employment agreement with Disney.
The legal dispute centers around a contract Connolly signed in November 2024, in which he agreed to remain with Disney through at least March 1, 2027. According to Disney’s legal filing, the contract contained a one-time termination clause, but that clause does not permit him to break the agreement for a position with a direct competitor — particularly one involved in sports media, a space Disney contends is a core strategic focus for the company.
“Connolly’s decision to join YouTube — a direct and aggressive competitor in the media and live sports streaming market — represents a clear violation of his contractual obligations,” the lawsuit claims. “Disney has made substantial investments in Mr. Connolly’s career, and his departure under these circumstances is not only damaging but unlawful.”
Disney is seeking both preliminary and permanent injunctions to block Connolly’s employment at YouTube. The media conglomerate also asked the court to consider unspecified damages related to the breach of contract and competitive harm.
YouTube, which had announced Connolly’s appointment on Thursday, has not yet responded publicly to the lawsuit. A spokesperson for the company did not immediately return a request for comment from Reuters.
Connolly, a 20-year Disney veteran, most recently served as head of platform distribution, where he was responsible for negotiating high-profile deals across ESPN and other Disney-owned media properties. His departure comes at a pivotal moment for Disney, which is preparing to launch its much-anticipated standalone ESPN sports streaming service later this year.
Sources familiar with the matter say Connolly’s new role at YouTube will involve overseeing strategic partnerships with major media companies and leading the platform’s expanding live sports initiatives. YouTube has rapidly positioned itself as a formidable player in the live sports streaming market, investing billions of dollars in acquiring media rights that appeal to its global user base.
In 2022, YouTube made headlines by securing a $14 billion deal with the National Football League to stream games as part of its “NFL Sunday Ticket” package. That move signaled a growing shift as digital-first platforms like YouTube, Amazon, and Netflix ramp up competition with traditional broadcasters for sports rights — a key battleground in the streaming wars.
Connolly’s expertise in media distribution and sports content would likely be instrumental in helping YouTube navigate this increasingly competitive landscape, industry observers noted.
“He’s one of the most respected executives in sports media,” said Peter Kafka, a media analyst and columnist. “This is a strategic loss for Disney and a big win for YouTube — if it stands. That’s why this legal battle is going to be watched very closely.”
Legal experts say Disney faces a steep, though not impossible, climb in enforcing non-compete clauses in California, where employment law tends to favor worker mobility. The state has historically taken a hard stance against contracts that restrict an employee’s right to work.
“California generally does not enforce non-compete agreements unless there’s clear evidence of trade secret misappropriation or other serious harm,” said Michelle Thomas, a partner at a Los Angeles-based employment law firm. “Disney will need to prove that Connolly’s move poses immediate and irreparable damage to its business.”
The outcome of the lawsuit could have wide-ranging implications for how media and tech companies approach executive contracts and competitive hiring, particularly in sectors like live sports where a handful of high-value deals can shift the market.
As the boundaries between traditional media companies and digital platforms continue to blur, legal clashes like Disney’s suit against YouTube may become more common. Both companies are chasing the same consumer dollars in an industry undergoing rapid disruption.
Disney has declined to comment beyond the lawsuit. A representative noted only that the company is committed to “protecting its interests and the integrity of its contractual agreements.”
Meanwhile, YouTube is pushing forward with its sports and media strategy, building on its massive global reach, which exceeds 2.5 billion monthly logged-in users. In addition to sports, the platform has been expanding into live television, music, and podcasting — further blurring the lines between entertainment, tech, and media.
For now, the fate of Connolly’s appointment — and whether he will be able to take up the post at YouTube — remains in the hands of the California courts. A preliminary hearing in the case is expected in the coming weeks.
