LOS ANGELES — A U.S. District Court jury has ordered the National Football League to pay a staggering $4.8 billion in damages, concluding that the NFL’s distribution of out-of-market Sunday afternoon games via DirecTV constituted a violation of federal antitrust laws. The decision, rendered on Thursday, may shake the foundations of sports broadcasting rights in the United States.
The substantial damages awarded include $4.7 billion allocated to residential subscribers and an additional $96 million for commercial subscribers, such as bars and restaurants. Under antitrust regulations, these figures could be tripled, potentially increasing the NFL’s financial liability to approximately $14.39 billion. This situation stems from a lawsuit representing 2.4 million residential subscribers and 48,000 businesses, who alleged that the NFL’s practices over the 2011-2022 seasons unfairly restricted competition and led to inflated prices.
At the heart of the case was the exclusivity agreement with DirecTV for the “Sunday Ticket” package, which plaintiffs argued unfairly limited viewing options and elevated costs. The jury reached their verdict after nearly five hours of deliberation, following a three-week trial that included testimonies from high-profile figures such as NFL Commissioner Roger Goodell and Dallas Cowboys owner Jerry Jones.
The NFL has expressed its intention to appeal the decision, a process that will first be reviewed by the 9th Circuit Court of Appeals and may ultimately reach the U.S. Supreme Court. In a statement released shortly after the verdict, the NFL conveyed its disappointment and strongly defended its distribution strategies, saying, “We continue to believe that our media distribution strategy is the most fan-friendly in sports and entertainment.”
The implications of this ruling for the NFL are significant. If the damages are upheld on appeal, the financial burden could average around $449.6 million per team among the 32 franchises in the league. However, actual payouts and any potential changes to the “Sunday Ticket” service will be deferred until the conclusion of the appeals process.
This legal challenge first emerged in 2015 when the Mucky Duck sports bar in San Francisco lodged a complaint, which was initially dismissed in 2017. The case was later resurrected by the 9th Circuit in 2019, granting it class action status, paving the way for the recent trial.
Observers have noted that other professional sports leagues, which also offer out-of-market packages but distribute them across multiple platforms and share revenue with subscribers, were closely monitoring the outcome. Their distribution models contrast with the NFL’s approach, which involved exclusive rights fees from DirecTV through 2022 before transitioning to a new arrangement with Google’s YouTube TV commencing in the 2023 season.
As the case progresses through the appeals process, the July 31 hearing for post-trial motions, including the NFL’s request for a judgment in its favor, looms as a critical next step in this significant legal battle. The outcome of this case may well dictate future strategies for sports leagues and their partnerships with broadcast providers. Meanwhile, the business community and football fans alike are left to ponder the transformation of sports broadcasting provoked by this landmark judicial ruling.