NFL Hit with $4.7B Verdict in ‘Sunday Ticket’ Antitrust Trial
The NFL suffered a major setback in court this week.
A Los Angeles jury has ordered the NFL to pay approximately $4.7 billion in damages for violating antitrust law. The verdict comes after a three-week trial that saw testimony from NFL Commissioner Roger Goodell and Cowboys owner Jerry Jones. The class action lawsuit was filed on behalf of over 2.4 million residential subscribers and 48,000 restaurants, bars, and other commercial establishments that show NFL games.
According to the lawsuit, the NFL colluded with DirecTV, CBS, and Fox to drive up the pricing of its DirecTV “Sunday Ticket” package, thereby violating antitrust law. The jury deliberated for roughly five hours over two days before reaching a unanimous decision.
“It’s a great verdict for consumers around America that this jury, despite the star power of the defendants, upheld the antitrust laws which are geared to protect consumers from overcharges. Justice was served.” - Lead attorney for the plaintiffs Bill Carmody
The NFL has expressed disappointment with the verdict, stating that they believe their media distribution strategy is the most fan-friendly in sports and entertainment. They plan to contest the decision, arguing that the class action claims are baseless and without merit.
The NFL’s Sunday Ticket package has been at the center of the antitrust trial.
So what’s next for the NFL? According to Sports Business Journal’s Ben Fischer, the NFL will likely argue that the judgment is excessive and that Judge Philip Gutierrez should set aside the ruling as a matter of law. If that doesn’t happen, the NFL will appeal to the Ninth Circuit Court of Appeals, and if unsuccessful there, to the U.S. Supreme Court.
The verdict has significant implications for the NFL and its fans, and it will be interesting to see how this plays out in the coming months.
Roger Goodell testified in the trial.