NFL to Pay $4.8 Billion for Antitrust Breach Over Sunday Ticket Game Distribution

LOS ANGELES — In a sweeping decision on Thursday, a federal jury ordered the National Football League to pay close to $4.8 billion in damages for violating antitrust laws with its exclusive distribution of out-of-market Sunday afternoon games through its “Sunday Ticket” package on DirecTV. The case could have broader implications for sports broadcasting rights and distribution models.

The U.S. District Court ruling concluded that the NFL had unfairly monopolized the market, charging inflated prices to millions of subscribers who had limited options to watch these games from 2011 to 2022. A total of $4.7 billion was awarded to the residential class and another $96 million to the commercial class, encompassing around 2.4 million residential subscribers and 48,000 businesses.

Due to federal antitrust laws, which allow for the tripling of damages, the NFL might end up paying as much as $14.39 billion if the judgment is upheld through the appeals process, which the NFL intends to pursue aggressively. The case is expected to move next to the 9th Circuit Court of Appeals and may possibly reach the Supreme U.S. Supreme Court.

NFL officials expressed disappointment with the decision, defending their distribution model as beneficial for fans by providing broad access to games through a mix of free broadcasts in local markets and national distributions of popular games. According to a league statement, they remain confident that their model is the “most fan-friendly distribution model in all of sports and entertainment.”

The trial, which spanned three weeks, saw testimonies from high-profile figures including NFL Commissioner Roger Goodell and Dallas Cowboys owner Jerry Jones. Plaintiffs’ attorney Bill Carmody argued that the NFL’s practices suppressed competition and hurt consumers, celebrating the verdict as a “great day for consumers.”

The ruling, resonating beyond the confines of football, drew attention from other major sports leagues and broadcasters, given the implications it could have on similar out-of-market packages across the sports industry. Major leagues like MLB, NBA, and NHL currently offer their out-of-market packages through multiple distributors, contrasting with the NFL’s exclusive deal.

Previously handled by DirecTV since 1994, the NFL’s “Sunday Ticket” will switch to Google’s YouTube TV starting from the 2023 season under a new seven-year agreement.

As the legal proceedings continue, the final outcomes regarding the “Sunday Ticket” services and other sports broadcasting arrangements could see significant changes depending on the resolution of appeals. All decisions regarding the rearrangement of the NFL’s game broadcasts are postponed until the finalization of the appeal process.

The class action suit originally initiated by the Mucky Duck sports bar in San Francisco in 2015 faced initial setbacks but was reinstated by the 9th Circuit in 2019 and received approval to proceed as a class action by Judge Philip S. Gutierrez in the following year.

The substantial judgment reflects a stringent stance on antitrust violations, signaling a potential shift in how sports broadcasting rights might be handled in the future. Scheduled post-trial motions on July 31 might further address the NFL’s request for a favorable ruling from Judge Gutierrez, arguing that plaintiffs did not sufficiently prove their case. The ongoing legal challenge underscores continuing debates over sports broadcast rights and their impact on fans across the nation.