On Thursday, the NFL faced a significant legal defeat as a federal judge ruled against the league in a long-standing class-action lawsuit. The judge ordered the NFL to pay a considerable sum of $4.7 billion in residential class damages, alongside an additional $96 million in commercial class damages. This ruling marks a pivotal moment in a case that has dragged on for nearly a decade, spotlighting the NFL's contentious "Sunday Ticket" package and its implications under antitrust laws.
The origins of this lawsuit date back to 2015, targeting the "Sunday Ticket" package. Launched in 1994, the package offered a unique service to NFL fans, especially those out-of-market supporters eager to watch their home teams' games. However, the plaintiffs in this case contend that the NFL's exclusive offering of "Sunday Ticket" may have violated antitrust laws, limiting choices for consumers. The scope of the class action encompasses all residential and commercial subscribers who utilized the service between 2012 and 2022, a group amounting to nearly 2.5 million customers.
In a statement, the NFL expressed its disappointment with the verdict. "We are disappointed with the jury's verdict today in the NFL Sunday Ticket class action lawsuit. 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," read the statement, underscoring the league's resolve to appeal the decision in the 9th Circuit.
Amanda Bonn, speaking on behalf of the plaintiffs, argued that the NFL, Fox, and DirecTV constructed an exclusive and expensive pathway that few could afford. "NFL, Fox, and DirecTV agreed to make an expensive toll road that very few people would be able to afford," Bonn stated. She further contended that the scheme benefitted every competitor within it, raising critical questions about monopolistic practices in sports broadcasting. "Every single competitor in this scheme benefited," she added.
Beth Wilkinson, representing the defense, presented a different perspective, underscoring the varied choices available to football fans and the premium nature of the "Sunday Ticket" product. "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," suggested Wilkinson.
Steve Bornstein, who was involved in the initial stages of "Sunday Ticket," stressed that the package was always envisioned as an additional offering for fans. "The NFL always wanted 'Sunday Ticket' to be an additional package. That is how it was designed since its inception," Bornstein remarked, hinting at the longstanding strategy behind the product.
The ongoing saga regarding "Sunday Ticket" has significant ramifications not just for the NFL, but for the broader landscape of sports broadcasting. DirecTV held the rights to this package from its inception in 1994 until 2022, at which point the rights were transferred to YouTube TV. As the case progresses, further scrutiny may emerge over exclusive sports packages and their adherence to antitrust regulations.
This recent judgment adds to the NFL's legal challenges, including a notable settlement in 2021 when the league agreed to pay $790 million to the city of St. Louis and other entities over the Rams' relocation. With a hearing scheduled for July 31 to address post-trial motions, including the potential to overturn the verdict, the NFL's legal team faces a critical period ahead.
The plaintiffs initially sought $7 billion in damages, making the $4.7 billion awarded a significant, albeit reduced, figure. The decision, once finalized pending the NFL's appeal, could reshape how fans experience and pay for exclusive sports content. With its appeal to the 9th Circuit looming, the NFL's next steps will be closely watched by industry stakeholders and fans alike.
The ramifications of this decision are vast, potentially influencing future broadcasting deals and the set-up of similar sports packages. As the dust settles, the focus now shifts to the upcoming appeal and the broader implications for one of America's most beloved sports institutions.