Los Angeles – A federal jury has ordered the National Football League to pay over $4 billion in damages after finding it liable in a landmark class action lawsuit involving its Sunday Ticket service. The judgement, if upheld, could usher in substantial modifications to the league’s lucrative broadcasting model, which includes agreements responsible for 93 of the 100 most-watched TV broadcasts in the U.S. last year.
The verdict, announced Thursday, addresses claims from more than 2.4 million residential subscribers and roughly 48,000 commercial establishments, such as bars and restaurants, who allege the NFL’s exclusive broadcasting strategy via Sunday Ticket contravened antitrust laws. The residential claimants were awarded $4.7 billion, while the commercial class received $96 million in damages.
The lawsuit centers on the assertion that the NFL’s practice of bundling and selling broadcast rights for all out-of-market games exclusively through Sunday Ticket restricts competition and inflates prices for consumers. Offered through YouTube TV at a rate of $349 per year, Sunday Ticket is the only way fans can watch NFL games not aired in their local market.
Following the jury’s decision, the NFL expressed its intention to challenge the outcome. “We are disappointed with the jury’s verdict in the NFL Sunday Ticket class action lawsuit,” the league stated. “We will contest this decision as we believe the claims are baseless and without merit.”
The league is poised to appeal to U.S. District Judge Philip Gutierrez, asserting that the damages are excessive and could represent a miscarriage of justice. The NFL also plans to argue for a halt in any changes to the Sunday Ticket’s structure until all appeals are resolved, a process which could extend into the late 2020s given the potential progression of the case through the U.S. Court of Appeals for the Ninth Circuit and possibly to the U.S. Supreme Court.
Judge Gutierrez, who has shown skepticism towards the plaintiffs’ arguments during the trial, will hear post-trial motions on July 31. The NFL will likely seek a judgment notwithstanding the verdict or a reduction in the awarded damages.
The timing of the appeals process is crucial not only for the league but also for class member fans, some of whom might be anticipating compensation, and others considering whether to renew their subscriptions. The NFL argues that staying the case is justified given the substantial damages awarded and the significant structural changes that would affect team contracts and broadcasting agreements if the ruling stands.
The outcome of this legal battle could have far-reaching implications for how professional sports leagues manage TV rights in the U.S. Presently, under the Sports Broadcasting Act, leagues like the NFL are exempt from antitrust scrutiny when negotiating national TV deals for games that are broadcast free and over-the-air. However, this exemption does not extend to subscription services like the Sunday Ticket.
Critics of the current system argue it prevents individual NFL teams from negotiating their own out-of-market broadcast deals, which could potentially lower costs for consumers and increase game availability. Conversely, the NFL maintains that the Sunday Ticket ensures fans nationwide can view any game, claiming that individual team negotiations could limit the accessibility of games to certain markets.
Beyond potential appeals and legal maneuvers, the NFL may need to explore new broadcasting arrangements that could involve teams competing in the sale of broadcast rights, possibly redefining how fans across the U.S. access their favorite NFL games. As the case unfolds, the league’s broadcasting dominance and its economic implications hang in the balance, promising to ignite further debates on antitrust laws and the broadcasting of sports in America.