The NFL’s distribution of its out-of-market games package could be determined in federal court due to a class-action lawsuit.
Subscribers of the NFL’s “Sunday Ticket” are alleging that the league violated antitrust laws by selling its package of out-of-market Sunday afternoon games from CBS and Fox at an inflated price. They also claim that the league restricted competition by offering “Sunday Ticket” exclusively through a satellite provider.
The NFL argues that it has the right to sell “Sunday Ticket” under its broadcasting antitrust exemption. However, the plaintiffs argue that this exemption only applies to over-the-air broadcasts and not pay TV.
The case began on June 6 in Los Angeles, with closing statements anticipated next week.
How did this case go to trial?
The lawsuit was initially filed in 2015 by the Mucky Duck sports bar in San Francisco. U.S. District Judge Beverly Reid O’Connell dismissed the lawsuit on June 30, 2017, ruling in favor of the NFL. However, the 9th Circuit Court of Appeals reinstated the case two years later. U.S. District Judge Philip Gutierrez later ruled the case could proceed as a class action on Feb. 7, 2023, rejecting the NFL’s final attempt to dismiss the case on Jan. 12.
Who are the plaintiffs?
The class action involves over 2.4 million residential subscribers and 48,000 businesses, primarily bars and restaurants, who purchased “NFL Sunday Ticket” from June 17, 2011, to Feb. 7, 2023. Google’s YouTube TV became the provider for “Sunday Ticket” last season.
What are the chances of the NFL winning?
While the NFL is a dominant sports league, it often faces setbacks in court, particularly in Los Angeles. In this case, the NFL might lose due to evidence presented by the plaintiffs’ attorneys regarding premium pricing demands from networks like Fox and CBS for “Sunday Ticket.”
Why the NFL could lose
The case has become more complex due to the detailed testimony of economists, frustrating the judge. The plaintiffs could potentially win if the evidence against the NFL is compelling.
Who has testified so far?
Witnesses in the trial have included NFL Commissioner Roger Goodell, Dallas Cowboys owner Jerry Jones, and executives from CBS and Fox Sports. A sports economist from the University of San Francisco also provided expert testimony.
How much could this cost the NFL?
If found liable, the NFL could face damages totaling $7 billion, potentially tripling to $21 billion in antitrust cases.
But when would the league have to pay?
If found liable, the NFL would likely appeal to higher courts, delaying any potential payouts for a significant amount of time.
What other options might “Sunday Ticket” subscribers have for lower prices?
The NFL could consider offering team-by-team packages or weekly packages to provide more affordable options for fans who want to watch out-of-market games.
Could this case impact other sports?
Other major sports leagues are monitoring this case closely, as the outcome could affect how out-of-market packages are sold and impact the economics of sports broadcasting as a whole.
