Does this seem overblown to anybody else?
No, not really. Not if you read the e-mail chain.
1) The NFL mislead (because I'm too classy to say "lied to") Harry Friedman about the severity of how his two properties would be affected by CBS channels carrying the NFL on Thursday night.
2) At the same time it also wanted Jeopardy to write a category promoting the NFL Thursday games. Said category involved Jeopardy doing all of the work, paying for photos because the NFL didn't bother to provide any, and having the clear the material with the NFL. The NFL called it "cross-promotion" but never reciprocated.
3) This all happened in Wheel and Jeopardy's renewal year, which has a lot to do with how much Sony can charge for its shows, and for that matter whether stations are even willing to carry them.
4) The result of this will be many millions of dollars of lost revenue to Sony.