LOS ANGELES — In a landmark ruling, a federal jury in Los Angeles has mandated the National Football League to compensate nearly $4.8 billion for breaches of antitrust laws connected to its exclusive “Sunday Ticket” broadcasting package. The conclusion of this high-profile case could have wide-ranging implications for sports broadcasting and antitrust regulations in the United States.
The decision was made public on Thursday following deliberations that lasted under a day at the U.S. District Court in the Central District of California. The court case saw testimonies from notable figures including NFL Commissioner Roger Goodell and Dallas Cowboys owner Jerry Jones.
The legal battle revolved around accusations that the NFL, in collaboration with DirecTV, unfairly restricted broadcast competition by bundling out-of-market game broadcasts and dictating elevated prices. As a result, a staggering $4.7 billion was awarded to residential subscribers of the “Sunday Ticket,” and $96 million was allocated to commercial establishments like bars and restaurants. Due to provisions under federal antitrust laws that permit tripling damages, the NFL could face liabilities amounting up to $14.39 billion.
Originating from a 2015 class action lawsuit led by the Mucky Duck sports bar in San Francisco, the legal claim contended that the NFL and DirecTV conspired to inflate viewer subscriptions by limiting access to individual games unless consumers purchased the comprehensive package. The lawsuit represented approximately 2.4 million residential subscribers and 48,000 businesses who had purchased the “Sunday Ticket” from DirecTV or its subsidiaries between 2011 and 2022.
During the trial, the plaintiffs argued that the exclusive broadcasting deals resulted in a blackout of out-of-market games for viewers who did not subscribe to the pricey package, which they alleged substantially hindered market competition and violated antitrust laws. They pointed out that unlike other major sports leagues in America which allow more diverse broadcasting, the NFL’s arrangement wholly curtailed competitive broadcasting options.
The NFL had attempted to dismiss the lawsuit by claiming that the “Sunday Ticket” was protected under the Sports Broadcasting Act of 1961, which permits joint TV rights sales by NFL team owners. Nonetheless, the jury was not swayed by this defense.
Following the verdict, the NFL expressed its disappointment and revealed plans to appeal the decision. The NFL underscored its belief in its media distribution strategy, touting it as “fan-friendly” and emphasizing that it includes widespread free and national broadcasting options, in addition to subscription services like the RedZone, Sunday Ticket, and NFL+.
If the NFL proceeds with its appeal, the case will be escalated to the Ninth Circuit Court of Appeals and possibly, later on, to the Supreme Court. The NFL remains adamant that the class action claims are unfounded and lacking merit.
The legal tussle reached this stage following a revival by the Ninth U.S. Circuit Court of Appeals in 2019 after an initial dismissal in 2017. Judge Philip S. Gutierrez ruled last year that the lawsuit could proceed as a class action, with additional post-trial motions set to be heard by him on July 31.
This case thus not only underscores ongoing tensions between large sports leagues and regulatory standards but also sets a significant precedent regarding how sports broadcasting rights are handled in the realm of antitrust law. The final outcomes could reshape the sports broadcasting landscape, affecting how fans access their favorite sports content across the U.S.