The NFL has been ordered to pay nearly $4.8 billion in damages after a jury ruled that the league violated antitrust laws in distributing out-of-market Sunday afternoon games on a premium subscription service.
The jury awarded $4.7 billion in damages to the residential class and $96 million in damages to the commercial class. The lawsuit covered 2.4 million residential subscribers and 48,000 businesses who paid for the package of out-of-market games from the 2011 through 2022 seasons on DirecTV.
The lawsuit claimed the league broke antitrust laws by selling its package of Sunday games at an inflated price. The subscribers also say the league restricted competition by offering “Sunday Ticket” only on a satellite provider.
The NFL said it would appeal the verdict. “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 jury of five men and three women deliberated for nearly five hours before reaching its decision. The trial lasted three weeks and featured testimony from NFL Commissioner Roger Goodell and Dallas Cowboys owner Jerry Jones.
The lawsuit was originally filed in 2015 by the Mucky Duck sports bar in San Francisco but was dismissed in 2017. Two years later, the 9th U.S. Circuit Court of Appeals, which has jurisdiction over California and eight other states, reinstated the case.
The NFL’s media distribution strategy has been under scrutiny in recent years, with many arguing that the league’s exclusive deals with DirecTV and YouTube TV have led to inflated prices for consumers. The league’s decision to sell “Sunday Ticket” only on a satellite provider has also been criticized for restricting competition.
The verdict is a significant blow to the NFL, which has long argued that its media distribution strategy is fair and competitive. The league’s appeal is likely to be a lengthy and costly process, and it remains to be seen how the verdict will impact the NFL’s business model in the long term.
The NFL’s Sunday Ticket package has been at the center of a long-running antitrust lawsuit.
In recent years, the NFL has faced increasing competition from other sports leagues and streaming services, which have been able to offer more affordable and flexible options for consumers. The league’s decision to partner with YouTube TV for the “Sunday Ticket” package has been seen as a response to this competition, but it remains to be seen how the verdict will impact the NFL’s ability to compete in the market.
NFL Commissioner Roger Goodell testified in the trial.
The verdict is also likely to have implications for other sports leagues and their media distribution strategies. The NBA, MLB, and NHL have all faced similar antitrust lawsuits in recent years, and the verdict could set a precedent for how these leagues operate in the future.
The verdict could have significant implications for sports fans and the way they consume games.
In conclusion, the verdict is a significant blow to the NFL and its media distribution strategy. The league’s appeal is likely to be a lengthy and costly process, and it remains to be seen how the verdict will impact the NFL’s business model in the long term. However, one thing is clear: the verdict is a win for consumers, who have been paying inflated prices for “Sunday Ticket” for years.
The NFL’s logo is seen outside the league’s headquarters.
