The NFL’s distribution of out-of-market games may be determined in federal court due to a class-action lawsuit.
Customers of the NFL’s “Sunday Ticket” package allege the league violated antitrust laws by selling its package of out-of-market games at a higher price and limiting competition by offering it exclusively on a satellite provider.
The NFL argues it has the right to sell “Sunday Ticket” under its broadcasting antitrust exemption, while the plaintiffs claim this exemption only applies to over-the-air broadcasts, not pay TV.
The case began on June 6 in Los Angeles, with closing statements expected soon.
Background of the Case:
The lawsuit was initially filed in 2015 by the Mucky Duck sports bar in San Francisco. In 2017, U.S. District Judge Beverly Reid O’Connell dismissed the case in favor of the NFL. However, two years later, the 9th Circuit Court of Appeals reinstated the case, allowing it to proceed as a class action.
Plaintiffs:
The class action involves over 2.4 million residential subscribers and 48,000 businesses, such as bars and restaurants, who purchased “NFL Sunday Ticket” between specific dates. Google’s YouTube TV is now the provider of “Sunday Ticket.”
Potential Outcome:
If found liable, the NFL could face up to $21 billion in damages, with appeals likely to follow in higher courts.
Impact on Sports:
Other major sports leagues are monitoring the case as it could influence the selling of out-of-market streaming rights and impact the distribution of sports packages.
