In a groundbreaking decision, a jury in U.S. District Court has ordered the NFL to pay more than $4.7 billion in damages after ruling that the league violated antitrust laws. The case centered around the distribution of 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. With damages potentially being tripled under federal antitrust laws, the NFL could end up facing a staggering liability of $14.39 billion.
The lawsuit covered 2.4 million residential subscribers and 48,000 businesses in the United States who had purchased the package of out-of-market games from the 2011 through 2022 seasons on DirecTV. The plaintiffs alleged that the league was in violation of antitrust laws by selling its package of Sunday games at an inflated price. They also argued that the NFL restricted competition by offering “Sunday Ticket” exclusively through a satellite provider, limiting consumer choice.
Following the jury’s verdict, the NFL expressed disappointment and announced plans to appeal the decision. The league defended its media distribution strategy, stating that it believed it was the most fan-friendly model in all of sports and entertainment. The NFL maintained that the class action claims were baseless and without merit. Despite the setback, the NFL thanked the jury for their time and service during the trial.
Post-trial motions are scheduled to be heard on July 31, including one to set aside the verdict. If the verdict stands, the NFL intends to appeal to the Ninth Circuit Court. In the event that the league is required to pay damages, each of the 32 teams could be looking at a cost of approximately $449.6 million. The trial featured testimony from high-profile figures such as NFL Commissioner Roger Goodell and Dallas Cowboys owner Jerry Jones.
Plaintiffs’ attorney Bill Carmody hailed the verdict as a victory for consumers, asserting that justice had been served. He highlighted a memo from April 2017 that suggested the NFL was considering a future without the “Sunday Ticket” package, which could have significant implications for fans. The decision to award damages and any potential changes to the “Sunday Ticket” package will be on hold pending the conclusion of all appeals.
The ruling against the NFL has raised concerns within other professional sports leagues that offer out-of-market packages. Major differences in how these leagues distribute their packages were noted, with MLB, the NBA, and the NHL opting for a revenue-sharing model with multiple distributors. The lawsuit originated in 2015 and was initially dismissed in 2017 before being reinstated by the 9th Circuit two years later.
The judgment against the NFL serves as a reminder of the importance of fair competition and consumer choice in the sports broadcasting industry. The implications of this case could have far-reaching effects on how major sports leagues market and distribute their out-of-market packages in the future.
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