The NFL’s $21 Billion Problem: How the League’s ‘Sunday Ticket’ Deal Could Cost Them Big
The National Football League is heading to court in Los Angeles, where jurors will decide if the league broke antitrust laws and should pay billions of dollars in damages over its ‘Sunday Ticket’ telecast. The trial, which begins on Wednesday, could have massive implications for the NFL and its lucrative broadcasting deals.
The lawsuit, filed in 2015, claims that the NFL used agreements with broadcast partners to keep a stranglehold over distribution, allowing DirecTV to charge inflated prices as the sole distributor for out-of-market games. The plaintiffs, who represent millions of home viewers and commercial subscribers like restaurants and bars, are asking a jury to find the NFL liable and award $7 billion in damages. The award could balloon up to $21 billion, as antitrust cases can triple damages.
The NFL has denied any wrongdoing and called the damages amount ‘speculative.’
The NFL has denied any wrongdoing and called the damages amount ‘speculative.’ However, if the jury finds the league liable, it could lead to significant changes in the way the NFL distributes its games. The trial could get even more interesting if NFL Commissioner Roger Goodell and other current and former league executives like Dallas Cowboys owner Jerry Jones and New England Patriots owner Robert Kraft are summoned to testify.
The NFL’s ‘Sunday Ticket’ deal has been accused of breaking antitrust laws.
The lawsuit argues that the NFL’s ‘Sunday Ticket’ deal restricts access to televised games, rather than expanding it. However, the NFL claims that the deal is a premium product that increases access to games. The trial will focus on whether the NFL’s agreements with broadcast partners violate antitrust laws.
YouTubeTV has democratized ‘Sunday Ticket’ games somewhat in its deal for residential subscribers.
Since the lawsuit was filed, the ‘Sunday Ticket’ deal has changed hands from DirecTV to Google’s YouTubeTV in 2022 for $2 billion. YouTubeTV has made the games more accessible to residential subscribers, offering them for $349 a year. However, DirecTV continues to offer ‘Sunday Ticket’ to commercial businesses like bars, restaurants, and hotels.
The outcome of the trial could have significant implications for the NFL and its broadcasting deals. If the jury finds the league liable, it could lead to changes in the way the NFL distributes its games, potentially opening up more opportunities for fans to access games.
The outcome of the trial could have significant implications for the NFL and its broadcasting deals.
As the trial begins, one thing is certain - the NFL’s ‘Sunday Ticket’ deal is under scrutiny, and the league’s future broadcasting deals hang in the balance. Will the NFL be forced to pay billions in damages, or will the league emerge victorious? Only time will tell.
