Los Angeles — A U.S. District Court jury has ruled against the NFL, issuing a nearly $4.8 billion award on Thursday, stating the league’s handling of its out-of-market Sunday afternoon game broadcasts via DirecTV broke federal antitrust laws. This case not only scrutinizes the NFL’s exclusive distribution actions but could reshape sports broadcasting arrangements extending to other leagues.
The ruling covers claims over a period from 2011 to 2022, involving some 2.4 million residential and 48,000 commercial subscribers. The subscribers argued that the NFL’s “Sunday Ticket” service, the exclusive broadcast outlet for these games, was overpriced and competition stifled, violating antitrust laws aimed at promoting competition and lowering prices.
Damage awards assigned to the class include $4.7 billion for residential subscribers and $96 million for the commercial plaintiffs. Crucially, under federal guidelines, these damages could potentially be tripled, escalating the NFL’s financial liability to as much as $14.39 billion.
The NFL expressed disappointment and cast doubt on the merits of the claims, asserting that its distribution model prioritized fans by broadcasting games free in local markets and supplemented these with various paid and digital options nationwide. The league confirmed its plans to appeal, which could send the case through the 9th Circuit Court of Appeals up to the Supreme War.
Payment of the awarded damages would be a substantial hit to the league’s finances. Even distribution among the NFL’s 32 teams would tap each for almost $450 million, a significant charge for any organization.
Testimony during the three-week trial included high-profile league figures such as NFL Commissioner Roger Goodell and Dallas Cowboys owner Jerry Jones. Plaintiffs’ lawyer Bill Carmody celebrated the verdict as a victory for consumers, underscoring it as a move towards greater justice in market practices.
Carmody pointed to a 2017 NFL memo during his closing remarks, hinting at the league’s previous considerations of altering the exclusivity arrangement of “Sunday Ticket.” The trial proceedings revealed the jury’s commitment to thorough deliberation, taking nearly five hours to reach a consensus.
Pending post-trial motions, the implementation of any judgment will be held until the appellate process concludes. These proceedings include an upcoming hearing set for the end of July where further arguments will be entertained.
Judge Philip S. Gutierrez will rule on post-trial motions including whether to uphold the jury’s decision or to reconsider it in light of further evidence provided by both sides.
The judgment has broader implications on sports broadcast rights, with leagues like MLB, NBA, and NHL closely monitoring the outcome, given their similar out-of-market package offerings. Unlike the NFL, these organizations diffuse their broadcasts across multiple platforms and share revenues with distributors.
This is a pivotal case in sports law, one that perhaps signals tighter scrutiny on how major sports leagues negotiate and implement their broadcasting rights.