NFL Commissioner Roger Goodell is shown arriving in federal court on June 17, 2024, in Los Angeles.
Damian Dovarganes/AP/AP
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Damian Dovarganes/AP/AP
LOS ANGELES – A jury in U.S. District Court ordered the NFL to pay nearly $4.8 billion in damages on Thursday after ruling that the league violated antitrust laws when it broadcast Sunday afternoon games on a premium subscription service.
The jury awarded $4.7 billion in damages for the residential class and $96 million in damages for the commercial class. Because damages can be tripled under federal antitrust laws, the NFL could be liable for $14.39 billion.
The lawsuit covers 2.4 million residential customers and 48,000 businesses in the United States who paid for out-of-market game packages from the 2011 to 2022 seasons on DirecTV. The lawsuit alleges the league violated antitrust laws by selling Sunday game packages at inflated prices. Customers also say the league limits competition by offering “Sunday Tickets” only on satellite providers.
The NFL said it will appeal the ruling. The appeal will go to the 9th Circuit Court of Appeals and possibly the Supreme Court.
If the NFL ends up paying out compensation, it could cost each of the 32 teams about $449.6 million.
“We are disappointed with today’s jury verdict in the NFL Sunday Ticket class action lawsuit,” the league said in a statement. “We continue to believe that the media distribution strategy, which features all NFL games broadcast on free television in participating team markets and national distribution of the most popular games, plus many additional options including RedZone, Sunday. Tickets and NFL +, is by far the most fan friendly distribution model in all sports and entertainment.
“We will certainly appeal this decision because we believe that the class action claims in this case are without merit and without merit.”
The trial lasted three weeks and featured testimony from NFL Commissioner Roger Goodell and Dallas Cowboys owner Jerry Jones.
“Justice has been done. The ruling maintains protections for consumers in our class. It’s a good day for consumers,” said attorney Bill Carmody.
During his closing remarks, Carmody shared an April 2017 NFL memo that showed the league was exploring a world without “Sunday Ticket” in 2017, where cable channels would air Sunday afternoon games out of markets not shown on Fox or CBS.
A jury of five men and three women deliberated for nearly five hours before reaching a decision.
Judge Philip S. Gutierrez is scheduled to hear post-trial motions on July 31, including the NFL’s request to rule in favor of the league because the judge determined the plaintiff did not prove his case.
Compensation payments, changes to the “Sunday Ticket” package and/or the way the NFL conducts Sunday evening games will remain in place until all appeals have been resolved.
The league reserves the right to sell “Sunday Tickets” under an antitrust exemption for broadcasting. The plaintiffs say it covers only live broadcasts and not pay TV.
Other professional sports leagues are also monitoring this case as they also offer off-market packages. The main difference though is that MLB, NBA and NHL market packages in various distributors and share in the revenue of each customer instead of receiving an outright rights fee.
DirecTV has “Sunday Ticket” from its inception in 1994 through 2022. The league signed a seven-year deal with Google’s YouTube TV that begins in the 2023 season.
The lawsuit was originally filed in 2015 by the Mucky Duck sports bar in San Francisco but was dismissed in 2017. Two years later, the 9th Circuit, which has jurisdiction in California and eight other states, reinstated the case. Gutierrez ruled last year that the case could be brought as a class action.
