Explore the billion-dollar battle of the Sunday Ticket lawsuit against the NFL. Understand the origins, key developments, and potential impacts on fans and future pricing in this comprehensive breakdown.
As a kid, my mornings started with a bowl of Frosted Flakes and the sports page. Occasionally, Iâd venture into the rest of the newspaper, only to get lost in stories that assumed a level of understanding I didnât have. Fast forward to today, and some of you might feel the same way about the Sunday Ticket lawsuit. For those returning to football after a summer break, hereâs a breakdown of what this case is about, what has happened, and whatâs next.
The Basics: Whatâs the Lawsuit About?
- Origin and Claims: The case, dating back to 2015, is a combination of class actions from commercial establishments and over 2.4 million residential customers of Sunday Ticket, covering the period from 2011 to 2022. It revolves around the NFLâs antitrust exemption granted by Congress in 1961, allowing the league to sell TV rights to free, over-the-air networks. This exemption was never meant for âpayâ TV.
- Antitrust Issues: The potential antitrust violation started when the NFL sold TV rights to cable networks in the late 1980s and then the out-of-market package to DirecTV in 1994.
Why It Matters: The Alleged Harm
- Pricing Strategy: The NFL allegedly set a high price for Sunday Ticket, nudging fans toward local games on CBS and Fox. This strategy allowed the NFL to secure billions from DirecTV (from fans willing to pay the high price) and billions from CBS and Fox (who tolerated the loss in ratings).
- Financial Impact: This dual revenue stream is at the heart of the lawsuit, claiming the NFL exploited its most loyal fans.
The Litigation Journey
- Initial Rulings: Initially, the district-court judge dismissed the case, but an appeals court revived it.
- The Trial: The trial began in June 2023 but received minimal and inadequate media coverage.
Key Moments and Developments
- Verdict: The jury awarded $4.7 billion, which could triple to $14.1 billion if confirmed as an official judgment.
- NFLâs Response: The NFL will fight this verdict, potentially getting it dismissed based on the judgeâs remarks during the trial. If the judgment stands, they will appeal all the way to the U.S. Supreme Court.
Read More: NFLâs $14.088 Billion Verdict Explained
Whatâs Next?
- Upcoming Hearing: The judge will soon hear arguments on the NFLâs motion for judgment as a matter of law.
- Appeals Process: With $14.1 billion at stake, expect the case to reach the U.S. Supreme Court, dragging out for several more years.
Implications for Sunday Ticket
- Possible Changes: The NFL might revise Sunday Ticket pricing to avoid further liability or potentially discontinue it.
- Financial Repercussions: The $14.1 billion burden could be passed down, starting with the players.
Conclusion: The Bigger Picture
For those who purchased Sunday Ticket from 2011 to 2022, a check could be coming your way. Future buyers might find it easier and cheaper to access.
Regardless of the outcome, one thing is clear: The NFL exploited its most passionate fans, making them pay more than necessary to watch out-of-market games. This lawsuit shines a light on the high cost of choice, benefiting the NFL with billions from both DirecTV and CBS/Fox.
Stay tuned for more updates as we continue to cover this evolving case and break down the trial transcript.