NFL Ordered to Pay $4.7 Billion in Damages Over Antitrust Violations
The National Football League (NFL) has been ordered to pay a staggering $4.7 billion in damages to football fans who alleged that the league’s “Sunday Ticket” programming and packages were overpriced. A Los Angeles jury sided with the fans on Thursday, determining that the NFL conspired with teams to charge high prices.
The NFL’s “Sunday Ticket” package has been at the center of an antitrust lawsuit.
The lawsuit, which was first filed in 2015, alleged that the NFL and its teams worked together to limit the availability of out-of-market games, thereby driving up prices for fans. The jury agreed, awarding $4.7 billion to the class of “Sunday Ticket” subscribers and $96 million to the class of businesses that paid for the package.
NFL Commissioner Roger Goodell had argued that the price of the “Sunday Ticket” package was determined by DirecTV alone, but the plaintiffs argued that the league had a hand in setting prices. The league also claimed that it had the right to sell “Sunday Ticket” under the antitrust exemption for broadcasting, but the plaintiffs countered that this exemption only applied to over-the-air broadcasts.
The NFL has expressed disappointment with the jury’s verdict and plans to contest the decision. In a statement, the league said that its media distribution strategy “is by far the most fan-friendly distribution model in all of sports and entertainment.”
NFL Commissioner Roger Goodell had argued that the price of the “Sunday Ticket” package was determined by DirecTV alone.
In an unusual move, the NFL chose to fight the case in a three-week trial rather than settling. The jury deliberated for about five hours across two days before reaching its verdict.
The “Sunday Ticket” package has been a lucrative revenue stream for the NFL, with DirecTV paying the league billions of dollars per year to broadcast out-of-market games. However, the package has also been criticized for being overpriced and limiting access to games for fans.
DirecTV had an exclusive deal with the NFL to sell “Sunday Ticket” from its launch in 1994 until 2022.
The NFL’s loss in this case could have significant implications for the league’s business model and its relationships with teams and broadcasters. It remains to be seen how the league will respond to this verdict and what changes it may make to its “Sunday Ticket” package in the future.
The NFL’s “Sunday Ticket” package has been at the center of an antitrust lawsuit.