LOS ANGELES – In a groundbreaking decision, a U.S. District Court jury has ordered the NFL to pay nearly $4.8 billion in damages for violating antitrust laws related to the distribution of out-of-market Sunday afternoon games on a premium subscription service. The ruling comes after a lengthy legal battle that involved millions of residential subscribers and businesses across the United States who purchased the package of games from 2011 to 2022 through DirecTV.
The jury awarded $4.7 billion in damages to the residential class and $96 million to the commercial class, with the potential for damages to be tripled under federal antitrust laws. This could mean the NFL may end up being liable for a staggering $14.39 billion. The lawsuit alleged that the league’s selling of Sunday games at inflated prices and its exclusive offering of “Sunday Ticket” through a satellite provider violated antitrust laws by restricting competition.
The NFL has expressed its intention to appeal the verdict, with the case potentially reaching the 9th Circuit Court of Appeals and even the Supreme Court. If the league is required to pay damages, each of the 32 teams could face a significant financial burden of approximately $449.6 million. The NFL has defended its distribution model, highlighting its media strategy that includes broadcasting all games on free television within local markets and offering additional choices like RedZone, Sunday Ticket, and NFL+.
The trial, which featured testimony from NFL Commissioner Roger Goodell and Dallas Cowboys owner Jerry Jones, lasted three weeks before the jury of five men and three women reached their decision after nearly five hours of deliberation. The plaintiffs’ attorney, Bill Carmody, celebrated the verdict as a win for consumer protection, emphasizing the importance of holding the league accountable for its practices.
As the case unfolds, potential changes to the “Sunday Ticket” package and the distribution of Sunday afternoon games by the NFL are on hold pending the resolution of all appeals. The lawsuit has implications beyond the NFL, as other professional sports leagues offering out-of-market packages are closely monitoring the outcome. Despite DirecTV’s long-standing partnership with the NFL for “Sunday Ticket,” the league recently signed a deal with Google’s YouTube TV for future seasons.
The legal battle stems from a case initially filed by a sports bar in San Francisco in 2015. After being dismissed and later reinstated by the 9th Circuit, the lawsuit progressed to become a class action suit. The implications of this ruling will extend beyond the NFL, potentially impacting how professional sports leagues distribute their out-of-market games in the future.
