A jury in U.S. District Court ruled that the NFL must pay nearly $4.8 billion for violating antitrust laws with its Sunday Ticket package. This package offered out-of-market Sunday afternoon games through a premium subscription service.
Damages Breakdown
- Residential Class: $4.7 billion
- Commercial Class: $96 million
- Total Potential Liability: $14.39 billion (due to federal antitrust laws allowing for tripled damages)
Affected Parties
- Residential Subscribers: 2.4 million
- Businesses: 48,000
- Time Frame: 2011-2022 seasons
- Provider: DirecTV
Claims Against the NFL
- The NFL sold Sunday Ticket at inflated prices.
- The package was restricted to a single satellite provider, limiting competition.
NFL’s Response
- The NFL plans to appeal the verdict.
- Possible Appeal Courts: 9th Circuit Court of Appeals, Supreme Court.
- Potential Cost Per Team: Approximately $449.6 million.
NFL’s Statement
- The NFL believes their media distribution strategy is the most fan-friendly in sports.
- They will contest the decision, claiming the class action is without merit.
Trial Details
- Duration: Three weeks
- Key Witnesses: NFL Commissioner Roger Goodell, Dallas Cowboys owner Jerry Jones.
- Jury: Five men, three women
- Deliberation Time: Nearly five hours
Plaintiffs’ Perspective
- Plaintiffs’ attorney Bill Carmody stated the verdict protects consumers.
- A 2017 NFL memo indicated the league was considering alternative ways to broadcast out-of-market games.
Next Steps
- Post-trial motions: Scheduled for July 31.
- NFL’s request for the judge to rule in their favor, claiming plaintiffs did not prove their case.
- Damages and potential changes to Sunday Ticket will be on hold until all appeals are concluded.
Legal Exemptions and Comparisons
- The NFL claims its antitrust exemption covers Sunday Ticket.
- Plaintiffs argue this exemption only applies to over-the-air broadcasts, not pay TV.
Impact on Other Leagues
- Other leagues like MLB, NBA, and NHL are watching the case.
- Unlike the NFL, these leagues offer out-of-market packages through multiple distributors and share revenue per subscriber.
Background of the Lawsuit
- Origin: Filed in 2015 by the Mucky Duck sports bar in San Francisco.
- Initial Dismissal: 2017
- Reinstatement: 2019 by the 9th Circuit
- Class Action Status: Approved by Judge Philip S. Gutierrez last year
Conclusion
The NFL’s future with Sunday Ticket and its financial implications depend on the outcome of appeals and potential changes to its distribution strategy.