The NFL intends to challenge a ruling by a federal jury in Los Angeles that held the league responsible for over $4.7 billion in damages due to antitrust violations related to DirecTV’s “Sunday Ticket” packages. After approximately five hours of deliberation over two days, the jury unanimously found that the NFL, DirecTV, CBS, and Fox colluded to raise the prices of the game packages. The lawsuit, which began in 2015 with a complaint from a San Francisco sports bar called the Mucky Duck, was initially dismissed in 2017 but reinstated by the Ninth U.S. Circuit Court of Appeals. It later turned into a class action lawsuit, covering more than 2.4 million residential subscribers and over 48,000 businesses that purchased DirecTV’s “Sunday Ticket” package between 2011 and 2022. The residential class could receive $4.7 billion in damages, while the commercial class could get $96 million, with the possibility of the total amount tripling to $12.3 billion under federal laws for antitrust cases. Lead attorney for the plaintiffs, Bill Carmody, hailed the verdict as a win for consumers and the upholding of antitrust laws.
The lawsuit argued that the NFL’s arrangement of pooling broadcasts through “Sunday Ticket” and selling them at an inflated price violated antitrust laws by limiting competition. The NFL claimed it had an antitrust exemption for broadcasting that covered “Sunday Ticket,” but the plaintiffs argued this only applied to over-the-air broadcasts, not pay TV. “Sunday Ticket” was previously available on DirecTV before the NFL signed a contract with YouTube TV. The NFL’s attorneys defended their distribution model as fan-friendly, offering all games on free, over-the-air TV in local markets. They also argued that DirecTV controlled the pricing of the “Sunday Ticket” package, often offering it for free to attract subscribers.
The NFL expressed disappointment with the verdict and stated they would contest the decision as they believed the claims were baseless. They thanked the jury for their service and planned to challenge the damages in post-trial motions. The judge might consider structural changes to the “Sunday Ticket” package, and the league could appeal the decision to higher courts. The case will continue to unfold in the coming months. –Field Level Media
