NFL Sunday Ticket Antitrust Lawsuit: $4.8 Billion Verdict for Fans

nfl sunday ticket antitrust lawsuit verdict

NFL Fans Score Big Win: Jury Rules NFL Inflated Prices and Restricted Competition

A jury in a California federal court has delivered a knockout blow to the NFL, siding with fans who claimed the league violated antitrust laws by restricting competition and inflating prices for its "Sunday Ticket" out-of-market package. The verdict, reached on Thursday after a three-week trial, orders the NFL to pay nearly $4.8 billion in damages.

NFL Ordered to Pay $4.8 Billion Over "Sunday Ticket" Monopoly

The jury awarded $4.7 billion to the residential class and $96 million to the commercial class, representing over 2.4 million residential subscribers and 48,000 businesses who paid for "Sunday Ticket" between 2011 and 2022. Since federal law allows tripling of damages in antitrust cases, the NFL could ultimately be on the hook for a staggering $14.39 billion.

Lawyers for the plaintiffs, led by William C. Carmody of Susman Godfrey LLP, hailed the verdict as a victory for consumers. "Justice was done," Carmody told AP News. "The verdict upholds protection for the consumers in our class. It was a great day for consumers."

The NFL, however, maintains its innocence and plans to fight the verdict. "We are disappointed with the jury's verdict today," the league said in a statement to AP News. The league argues it has the right to sell "Sunday Ticket" under an antitrust exemption for broadcasting. They also pointed to their media strategy, which features free over-the-air broadcasts and national distribution of popular games, as "fan friendly."

How the NFL's Exclusivity Deal Inflated Prices and Stifled Competition

The case centered on the NFL's decision to offer "Sunday Ticket" exclusively through DirecTV from 1994 to 2022. Plaintiffs' attorneys argued this exclusivity deal limited competition and drove up prices for the package. Expert testimony from sports economist Daniel Rascher suggested that partnering with a cable TV provider could have reached as many as 90 million potential customers, far exceeding DirecTV's 13 million subscribers at the time. Lawyers further argued the NFL conspired with its network partners, CBS and Fox, to restrict competition and protect their Sunday afternoon broadcast ratings.

The lawsuit's origins trace back to 2015 when a San Francisco sports bar first filed suit. After dismissal in 2017, the case was reinstated by the 9th Circuit Court in 2019. Last year, Judge Philip S. Gutierrez greenlit the case as a class action lawsuit and the trial kicked off on June 6th, paving the way for this week's verdict. 

The NFL's defense countered that "Sunday Ticket" is a premium product for out-of-market fans and its price point reflects its value. They emphasized that all local market games are available for free over-the-air broadcasts.

What's Next for "Sunday Ticket"?  

The verdict marks a significant win for fans but is unlikely to be the final chapter. The NFL has already announced its intention to appeal, which would move to the 9th Circuit Court of Appeals and potentially the Supreme Court. Judge Philip S. Gutierrez is scheduled to hear post-trial motions on July 31st, including the NFL's request for a reversal of the verdict. Payment of any damages and changes to "Sunday Ticket" would be on hold until all appeals are exhausted.

This case has significant implications for other professional sports leagues with similar out-of-market packages. Unlike the NFL's exclusive deal with DirecTV, MLB, NBA, and NHL distribute their packages across multiple platforms, sharing revenue per subscriber. This verdict could pave the way for similar legal challenges against these leagues, potentially forcing them to re-evaluate their distribution strategies.

While fans rejoice in this initial victory, the legal battle surrounding "Sunday Ticket" is far from over. The coming months and years will likely see appeals processes play out, ultimately determining the final outcome and potential impact on the NFL's business model.

Case Details

  • Lawsuit: In re: National Football League’s “Sunday Ticket” Antitrust Litigation
  • Case Number: 2:15-mdl-02668
  • Court: U.S. District Court for the Central District of California

Plaintiffs' Attorneys

  • Marc M. Seltzer, Kalpana Srinivasan, Amanda Bonn, William C. Carmody, Seth Ard, Tyler Finn and Ian M. Gore (Susman Godfrey LLP)
  • Scott Martin, Sathya S. Gosselin, Christopher L. Lebsock, Samuel Maida and Farhad Mirzadeh (Hausfeld LLP)
  • Howard Langer, Edward Diver, Peter Leckman and Kevin Trainer (Langer Grogan & Diver PC)
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