NFL ordered to pay billions in ‘Sunday Ticket’ case for violating antitrust laws: NPR

LOS ANGELES — A U.S. District Court jury ordered the NFL to pay nearly $4.8 billion in damages Thursday after finding the league violated antitrust laws in distributing Sunday afternoon games out of market on a premium subscription service.

The jury awarded damages of $4.7 billion to the residential class and $96 million to the commercial class. Since damages can be tripled under federal antitrust laws, the NFL could ultimately be liable for $14.39 billion.

The lawsuit involved 2.4 million residential customers and 48,000 businesses in the United States who paid for a package of out-of-market games on DirecTV from the 2011 through 2022 seasons. The lawsuit claimed the league broke antitrust laws by selling its packages of Sunday games at inflated prices. Customers also say the league has restricted competition by only offering “Sunday Tickets” on satellite providers.

The NFL said it would appeal the decision. That appeal will go to the 9th Circuit Court of Appeals and then possibly to the Supreme Court.

If the NFL has to pay damages, each of the 32 teams could lose approximately $449.6 million.

“We are disappointed by 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 participating teams’ markets, and national distribution of our most popular games, including RedZone, Sunday Complemented by additional options is Ticket and NFL+, the most fan-friendly distribution model ever in all of sports and entertainment.

“We will certainly oppose this decision as we believe the class action claims in this case are baseless and without merit.”

The trial lasted three weeks and featured testimony from NFL Commissioner Roger Goodell and Dallas Cowboys owner Jerry Jones.

“Justice was done. This decision maintains the protection for our class of consumers. This was a great day for consumers,” said plaintiff attorney Bill Carmody.

During his closing remarks, Carmody showed an April, 2017, NFL memo showing that the league was exploring a world without “Sunday Ticket” in 2017, where the cable channels air Sunday afternoons not on Fox or CBS. Will air out-of-market games shown.

The jury of five men and three women deliberated for about five hours before reaching their verdict.

Judge Philip S. Gutierrez is scheduled to hear post-trial motions on July 31, including the NFL’s request for a ruling in the league’s favor after the judge determined the plaintiffs did not prove their case.

Payment of damages, any changes to the “Sunday Ticket” package and/or the way the NFL conducts Sunday afternoon games will be on hold until all appeals are complete.

The league said it had the right to sell “Sunday Tickets” under antitrust exemptions for broadcasting. The plaintiff said it only covered over-the-air broadcasts and not pay TV.

Other professional sports leagues were also keeping an eye on the matter as they also offer out-of-market packages. However one major difference is that MLB, NBA and NHL sell their packages across multiple distributors and share in the revenue per subscriber rather than receiving a lump sum rights fee.

DirecTV had a “Sunday Ticket” from its inception in 1994 until 2022. The league signed a seven-year deal with Google’s YouTube TV, starting with the 2023 season.

The lawsuit was originally filed by the Mucky Duck Sports Bar in San Francisco in 2015, but was dismissed in 2017. Two years later, the 9th Circuit, which has jurisdiction over California and eight other states, reinstated the case. Gutierrez ruled last year that the case could proceed as a class action.