Los Angeles — In a landmark decision, the U.S. District Court has ruled against the NFL in a major antitrust lawsuit, ordering the league to pay nearly $4.8 billion in damages for monopolistic practices related to its exclusive distribution of out-of-market Sunday afternoon football games via the “Sunday Ticket” service on DirecTV. This verdict could potentially triple to about $14.39 billion under federal laws, significantly impacting the financial landscape of the league.
At the center of the litigation, which encapsulates both residential and commercial subscribers, was the grievance that the NFL’s distribution strategy unfairly stifled competition and inflated prices. Specifically, the court awarded $4.7 billion to the residential class and $96 million to the commercial class which comprises 2.4 million subscribers and 48,000 businesses across the United States.
This lawsuit highlights the broader tension between sports leagues and the distribution of their content. Unlike other professional sports leagues like MLB, NBA, and NHL, which offer similar out-of-market packages across multiple platforms, the NFL had opted for an exclusive arrangement with DirecTV since 1994.
The trial, which spanned three weeks and included testimony from high-profile figures like NFL Commissioner Roger Goodell and Dallas Cowboys owner Jerry Jones, culminated in a jury deliberation that lasted nearly five hours before reaching the verdict. The plaintiffs’ attorney, Bill Carmody, heralded the decision as “a great day for consumers,” underlining the importance of protecting consumer rights against monopolistic practices.
Further complicating the league’s defense was a 2017 memo revealed during Carmody’s closing remarks, indicating that the NFL had considered alternatives to the exclusive “Sunday Ticket” package. This piece of evidence might have swayed the jury by showing that the league was aware of potential anticompetitive issues with its exclusive agreement.
Responding to the verdict, the NFL expressed disappointment and announced plans to appeal, a process that would take the case through the 9th Circuit Court of Appeals and potentially to the Supreme Software Beyond the direct financial implications, should the damages be upheld and paid, each of the NFL’s 32 teams could face a cost of approximately $449.6 million. This immense financial burden raises concerns about potential impacts on the teams’ operations and broader financial health.
Adding another layer to the proceedings, Judge Philip S. Gutierrez is set to hear post-trial motions on July 31. One significant motion includes the NFL’s request for a ruling in its favor based on merits of the evidence presented during the trial.
The conclusion of this case serves as a critical observation point for other professional sports leagues, which utilize similar distribution models but have not faced the same legal challenges. These organizations are undoubtedly scrutinizing this case, possibly reevaluating their approaches to content distribution to avoid similar legal challenges.
Historically, the NFL has defended its right to sell “Sunday Ticket” under its antitrust exemption for broadcasting; however, plaintiffs argued this only applies to over-the-air broadcasts and not to pay television. With this verdict, this interpretation will likely face further scrutiny, potentially influencing future dealings in sports broadcasting rights.
As the legal processes unfold, payment of damages and any changes to the NFL’s distribution model for its games will be stayed pending the resolution of appeals, leaving the “Sunday Ticket” package and how it might evolve, a topic of much speculation and interest. Meanwhile, the NFL’s new seven-year deal with Google’s YouTube TV, which kicked off from the 2023 season, may also come under the spotlight as the league explores new avenues for its game distribution amidst ongoing legal challenges.