The distribution of the NFL’s package of out-of-market games may be determined in federal court due to a class-action lawsuit.
Subscribers of the NFL’s “Sunday Ticket” package are alleging that the league violated antitrust laws by selling its out-of-market Sunday afternoon games from CBS and Fox at a price they believe was inflated. They also claim the league limited competition by making “Sunday Ticket” exclusive to a satellite provider.
The NFL argues that it has the right to sell “Sunday Ticket” under its antitrust exemption for broadcasting. However, the plaintiffs argue that this exemption only applies to over-the-air broadcasts, not pay TV.
The trial began on June 6 in Los Angeles, with closing statements expected soon.
How did this case go to trial?
The lawsuit was initially filed in 2015 by the Mucky Duck sports bar in San Francisco. In June 2017, U.S. District Judge Beverly Reid O’Connell dismissed the case in favor of the NFL, citing that “Sunday Ticket” did not diminish the availability of NFL games and that any potential inflated prices charged by DirecTV did not constitute harm to competition. The 9th Circuit Court of Appeals reinstated the case two years later. On February 7, 2023, U.S. District Judge Philip Gutierrez allowed the case to proceed as a class action, rejecting the NFL’s attempt to dismiss it on January 12.
Who are the plaintiffs?
The class action lawsuit includes over 2.4 million residential subscribers and 48,000 businesses, primarily bars and restaurants, who purchased “NFL Sunday Ticket” between June 17, 2011, and February 7, 2023. Google’s YouTube TV became the provider of “Sunday Ticket” last season.
What are the NFL’s chances of winning?
Despite being a dominant force in American sports, the NFL has faced losses in court, particularly in Los Angeles. The case presents a rare instance of a high-profile lawsuit involving the league’s financial matters going to trial without a prior settlement. The outcome remains uncertain.
Why could the NFL lose?
Legal memos suggest that Fox and CBS aimed for premium pricing of “Sunday Ticket” to protect their local ratings. The NFL’s rejection of lower pricing offers from potential providers could be used against them.
Why could the NFL win?
The complexity of the case has caused frustration for the judge, who criticized the plaintiffs’ reliance on economists for testimony. The witnesses who have testified so far include NFL Commissioner Roger Goodell and other prominent figures in the sports industry.
How much could this cost the NFL?
If found liable, the NFL could face significant damages, potentially reaching billions of dollars. However, any financial repercussions would likely be delayed due to the appeals process.
Other potential outcomes for “Sunday Ticket” subscribers
The NFL could explore alternative package options, such as team-specific packages or weekly subscriptions, to address subscriber concerns. The impact of this case on other sports leagues offering out-of-market packages is being closely monitored.
