The NFL dealt with a significant legal blow on Thursday when a federal judge ruled against the league in a long-standing antitrust lawsuit. The judge mandated the NFL to pay a staggering $4.7 billion in residential class damages, along with an additional $96 million in commercial class damages.
The roots of this monumental decision lie in a class-action lawsuit that has been percolating through the courts for nearly a decade. Originally filed in 2015, the lawsuit targets the NFL's "Sunday Ticket" package—a service that launched in 1994 offering out-of-market fans the chance to watch their home teams. Central to the plaintiffs' argument is the contention that the NFL violated antitrust laws by offering this exclusive package.
Spanning 2012 to 2022, the case impacts nearly 2.5 million residential and commercial subscribers who used the "Sunday Ticket" service during that timeframe. These plaintiffs initially sought $7 billion in damages, citing unfair market practices that limited consumer choice and inflated prices.
"We are disappointed with the jury's verdict today in the NFL Sunday Ticket class action lawsuit," the NFL said in an official statement. "We continue to believe that our media distribution strategy...is by far the most fan-friendly distribution model in all of sports and entertainment. We will certainly contest this decision as we believe that the class action claims in this case are baseless and without merit."
DirecTV, the original holder of the "Sunday Ticket" rights from 1994 until they transferred to YouTube TV last season, was also embroiled in the legal battle. Amanda Bonn, representing the plaintiffs, argued that "NFL, Fox, and DirecTV agreed to make an expensive toll road that very few people would be able to afford." She further remarked, "Every single competitor in this scheme benefited," emphasizing the perceived collusion that disadvantaged the average consumer.
The strategically designed exclusivity of the "Sunday Ticket" package has always been a point of contention. Steve Bornstein, a former executive with the NFL, highlighted that "The NFL always wanted 'Sunday Ticket' to be an additional package. That is how it was designed since its inception."
On the other hand, some argue about the abundance of choices already available to NFL fans. Beth Wilkinson, speaking on behalf of the defense, stated, "The case is about choice. This is a valuable, premium product. Think about all the choices available to fans. We want as many people as possible to watch the free broadcasts."
This latest legal defeat isn't the first significant financial dent the NFL has faced in recent years. In 2021, the league settled with the city of St. Louis and several other entities for $790 million over the controversial relocation of the Rams. The financial repercussions from these legal challenges point to broader scrutiny over the NFL's business practices.
The league has announced its plans to appeal to the 9th Circuit, hoping to overturn the verdict. Pending appeal, the decision has the potential to set a precedent that could lead to increased scrutiny and potential restructuring of exclusive sports broadcasting packages.
The next steps in this saga are expected soon—a hearing is scheduled for July 31 to address post-trial motions, one of which includes possibly overturning the verdict. This ongoing legal battle underscores the complexities and stakes involved in the world of sports broadcasting rights, and how they impact millions of fans and billions in revenue.
As this case unfolds, it serves as a compelling reminder of the changing landscape of sports media, where the balance between exclusive content and consumer fairness remains a hotbed of legal and business contention.