LOS ANGELES — The NFL was considering a future without “Sunday Ticket” in 2017, where cable channels would broadcast Sunday afternoon out-of-market games not shown on Fox or CBS.
The league memo was presented by plaintiffs during their closing arguments on Wednesday as the jury in the class-action lawsuit filed by “Sunday Ticket” subscribers began deliberating.
Following instructions from U.S. District Judge Philip Gutierrez, the jury listened to the plaintiffs’ closing statement in the morning. The NFL then gave its final remarks after lunch, and the plaintiffs had 20 minutes for rebuttal.
The jury deliberated for 90 minutes before adjourning for the day. Deliberations will resume on Thursday.
In a trial that spanned three weeks and featured testimonies from NFL Commissioner Roger Goodell and Dallas Cowboys owner Jerry Jones, a memo dated April 21, 2017, titled the “NFL New Frontier,” made a significant impact.
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The memo envisioned a scenario where every game would be broadcasted on a network on Sunday afternoons. Fox and CBS would have paid 25% less per game (around $10 million per game), while cable networks would have paid $9 million per game, aligning with DirecTV’s average in its contract with the league.
These figures pertained to the rights that expired after the 2022 season, with current agreements likely resulting in higher averages.
The league memo outlined early games on FS1, ESPN, ESPN2, TBS, TNT, NFL Network, and CBS Sports Network, with late games on FS1, TBS, and TNT.
“The NFL recognized that 35 million fans were underserved,” stated William Carmody, one of the plaintiffs’ attorneys, during his closing arguments. “We are seeking accountability. It is imperative to inform the 32 team owners that even they cannot violate antitrust laws and overcharge fans. Competing on the field is one thing, colluding off it is another.”
However, some out-of-market games under the NFL’s memo would not be available on basic cable. Fans and cable companies would also incur some costs through elevated subscription fees.
The lawsuit encompasses 2.4 million residential subscribers and 48,000 businesses who subscribed to the out-of-market games package from the 2011 through 2022 seasons on DirecTV. It alleges that the league violated antitrust laws by selling the Sunday games package at an inflated price. Subscribers also assert that the league limited competition by offering “Sunday Ticket” solely on a satellite provider.
The league maintains its right to sell “Sunday Ticket” under its broadcasting antitrust exemption. The plaintiffs argue that this exemption only covers over-the-air broadcasts and not pay TV.
Jacksonville Jaguars owner Shad Khan labeled last year’s late-season collapse as an “organizational failure.”
The Jaguars lost five of their final six games and missed the playoffs after leading the AFC South for three months.
Speaking at a formal declaration about a $1.4 billion “stadium of the future,” Khan shared insights on various football-related topics.
