Los Angeles — A federal jury recently ruled that the National Football League (NFL) must pay a hefty $4.7 billion to a class of sports enthusiasts who claim the league conspired with DirecTV and major networks to overcharge for its exclusive Sunday Ticket package. The compensation awarded may soar past $14 billion if the decision withstands appeals, owing to antitrust laws that allow tripling of the damages.
Filed in 2015, the class-action suit includes more than 2.4 million residential subscribers and over 48,000 commercial entities such as bars and restaurants. While residential subscribers were awarded $4.7 billion collectively, commercial plaintiffs received $96 million.
The NFL communicated its disappointment with the jury’s decision, asserting plans to challenge the verdict. The league maintains that its media distribution system includes the most consumer-friendly model across sports and entertainment industries, integrating free broadcasted games with options like RedZone, Sunday Ticket, and NFL+ to enhance viewer experiences.
DirecTV, which lost its exclusive rights to distribute Sunday Ticket after nearly three decades, did not immediately respond to requests for comments. Starting with the 2023-24 season, Google now offers Sunday Ticket through YouTube following a seven-year agreement with the NFL. This platform allows access to all out-of-market Sunday NFL games not broadcasted locally on Fox or CBS.
The trial spotlighted the NFL’s defense, referencing a 1961 congressional provision that permits league-wide network broadcasting deals. However, the plaintiffs contended this exemption should not extend to subscription services like Sunday Ticket. Further, it was revealed during the proceedings that Fox and CBS allegedly pressured the NFL to set high prices for Sunday Ticket to avoid undercutting their own broadcast ratings.
Interestingly, evidence at the trial showed Disney’s ESPN had proposed acquiring Sunday Ticket rights with a significantly lower pricing structure — $70 per season for access to all Sunday out-of-market games for single teams. In comparison, current pricing under YouTube’s management ranges from $349 to $449 per season, depending on whether customers bundle it with YouTube TV or purchase it separately.
The class-action lawsuit represents individuals and businesses that purchased Sunday Ticket directly from DirecTV between June 17, 2011, and February 7, 2023. This decision marks a significant upheaval in sports broadcasting, possibly reshaping the pricing and distribution models for premier sporting content in the U.S. amidst ongoing scrutiny by regulatory bodies.