Los Angeles, CA – A federal jury in California has mandated the National Football Congress (NFL) to pay more than $4.7 billion in damages for allegedly charging excessive rates for their “Sunday Ticket” packages. The decision, announced Thursday, concluded that the NFL and its teams had conspired to set high prices for the service, impacting millions of fans who subscribe both residentially and commercially.
The legal proceedings in Los Angeles ruled predominantly in favor of the plaintiffs, specifically awarding $4.6 billion to the residential subscribers and an additional $96 million to commercial entities like bars and restaurants.
Under U.S. antitrust statutes, these penalties could potentially triple, escalating the total compensation to upwards of $14 billion. This would significantly escalate the financial implications for the NFL, which expressed disappointment regarding the jury’s decision and indicated plans to challenge the verdict.
The trial is the outcome of longstanding legal disputes extending over a decade, centered on accusations against the NFL for monopolizing the distribution of “Sunday TV Ticket.” The plaintiffs argued this allowed DirecTV to maintain inflated prices when it was the sole broadcaster of the service.
The service in question, the NFL’s “Sunday Ticket,” is crucial for fans aiming to watch games outside their local markets. A subscription to this service through its newest distributor, Google’s YouTube, can cost up to $449.
Despite the allegations and sizable jury verdict, the NFL defended the pricing structure of the “Sunday Ticket,” positioning it as a premium service that broadens fan access to games beyond what is available on local networks. According to them, the service adds substantial value by offering comprehensive access to games across the country.
The complainants in this case were a mixture of residential and commercial subscribers to DirecTV who purchased “NFL Sunday Ticket” between June 2011 and February 2023. This group comprises approximately 2.4 million residential customers and 48,000 commercial venues like restaurants and bars.
Notably, neither DirecTV nor Google, the current distributor of the Sunday Ticket, were defendants in this lawsuit. DirecTV was previously under the ownership of AT&T, while Google is a subsidiary of Alphabet.
This verdict has opened the door to potential shifts in how sports broadcasting rights are handled, with serious implications for how fans across the U.S. might access their favorite sports content in the future. If the judgment stands, it could reshape the pricing and availability of televised sports, reflecting broader trends and consumer demands in digital content distribution.