LOS ANGELES — The NFL has been found guilty of breaking antitrust laws in its distribution of out-of-market Sunday afternoon games on the “Sunday Ticket” premium subscription service.
Even though the jury of five men and three women in a U.S. District Court awarded nearly $4.8 billion in damages Thursday to residential and commercial subscribers of “Sunday Ticket,” don’t expect any settlement checks or the shuttering of the service anytime soon.
What did the jury determine?
The league broke antitrust laws by selling “Sunday Ticket” only on DirecTV and at an inflated price. By offering the service on only one distributor and with a high price, that limited the subscriber base and satisfied concerns by CBS and Fox about preserving local ratings while the NFL got a lot of money for its broadcast rights.
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Three weeks. It began with opening statements on June 6 and featured 10 days of testimony before closing arguments on Wednesday. The jury deliberated for nearly five hours Wednesday and Thursday before coming to a decision.
The NFL brought in Commissioner Roger Goodell and Dallas Cowboys owner Jerry Jones to testify, but it didn’t help. The plaintiffs’ mostly used economists and video from pre-trial depositions.
The class action applied to more than 2.4 million residential subscribers and 48,000 businesses, mostly bars and restaurants, that purchased “NFL Sunday Ticket” from June 17, 2011, to Feb. 7, 2023.
What is the breakdown of the damages?
The jury awarded $4.7 billion to residential subscribers and $96 million to businesses. Because damages are trebled under federal antitrust laws, the NFL could end up being liable for $14.39 billion unless it reaches a settlement or it is reduced.
The residential damages were slightly less than the $5.6 billion offered under the plaintiffs’ College Football Model but more than a model where “Sunday Ticket” would have multiple carriers and a 49.7% reduction in the subscription cost ($2.81 billion).
The business damages were much lower than the plaintiffs presented in any of their three models. The lowest was $332 million.
How would the NFL pay damages?
It would be spread equally among the 32 teams. That means each one could be paying as much as $449.6 million.
Will there be any immediate changes?
Changes to the “Sunday Ticket” package and/or the ways the NFL carries its Sunday afternoon games would be stayed until all appeals have been concluded. It could consider offering team-by-team or week-by-week packages along with reducing the price.
ESPN proposed offering “Sunday Ticket” for $70 per season with team-by-team packages in 2022, but it was turned down by the NFL before it went with YouTube TV. If the NFL offered team-by-team packages all along, one of the key class members likely would not have been part of the lawsuit.
All eyes turn to July 31 when Gutierrez is scheduled to hear post-trial motions. That will include the NFL’s request to have him rule in favor of the league because the judge determined the plaintiffs did not prove their case.
