NFL Hit with $4.7 Billion in Damages for Violating Antitrust Laws

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A jury in U.S. District Court has ruled that the NFL violated antitrust laws in distributing out-of-market Sunday afternoon games on a premium subscription service, awarding $4.7 billion in damages to the residential class and $96 million in damages to the commercial class.

The lawsuit, which covered 2.4 million residential subscribers and 48,000 businesses in the United States, claimed that the league broke antitrust laws by selling its package of Sunday games at an inflated price and restricting competition by offering “Sunday Ticket” only on a satellite provider.

“We are disappointed with the jury’s verdict today in the NFL Sunday Ticket class action lawsuit,” the league said in a statement. “We continue to believe that our media distribution strategy, which features all NFL games broadcast on free over-the-air television in the markets of the participating teams and national distribution of our most popular games, supplemented by many additional choices including RedZone, Sunday Ticket and NFL+, is by far the most fan-friendly distribution model in all of sports and entertainment.”

The trial lasted three weeks and featured testimony from NFL Commissioner Roger Goodell and Dallas Cowboys owner Jerry Jones. During his closing remarks, plaintiffs’ attorney Bill Carmody showed an April 2017 NFL memo that explored a world without “Sunday Ticket” in 2017, where cable channels would air Sunday afternoon out-of-market games not shown on Fox or CBS.

The jury of five men and three women deliberated for nearly five hours before reaching its decision. Judge Philip S. Gutierrez is scheduled to hear post-trial motions on July 31, including the NFL’s request to have him rule in favor of the league because the judge determined the plaintiffs did not prove their case.

Payment of damages, any changes to the “Sunday Ticket” package, and/or the ways the NFL carries its Sunday afternoon games would be stayed until all appeals have been concluded.

The league maintained it had the right to sell “Sunday Ticket” under its antitrust exemption for broadcasting. The plaintiffs said that only covers over-the-air broadcasts and not pay TV.

Other professional sports leagues were also keeping an eye on this case since they also offer out-of-market packages. A major difference, though, is that MLB, the NBA, and the NHL market their packages on multiple distributors and share in the revenue per subscriber instead of receiving an outright rights fee.

Roger Goodell

The verdict has significant implications for the NFL and its fans. If the league ends up paying damages, it could cost each of the 32 teams approximately $449.6 million.

The NFL has stated that it will appeal the verdict, which could lead to a lengthy and costly legal battle.

Jerry Jones

The case has sparked debate about the NFL’s media distribution strategy and its impact on fans. While the league claims that its model is the most fan-friendly, critics argue that it restricts competition and drives up prices.

As the NFL navigates this legal battle, fans will be watching closely to see how it affects the league and its teams.

Sunday Ticket

The NFL’s media distribution strategy has been under scrutiny for years, and this verdict could be a major blow to the league’s business model.