NFL Loses ‘Sunday Ticket’ Lawsuit, Federal Jury Must Pay $4 Billion

A federal jury has ordered an NFL team to pay $4.7 billion in residential damages and $96 million in commercial damages in a class-action lawsuit filed against the league by “NFL Sunday Ticket” subscribers. The verdict was first reported by journalist Meghann Cuniff.

The lawsuit alleged that the NFL, its teams and its network partners (DirecTV, CBS, ESPN and Fox) violated antitrust laws by colluding to restrict competition and fix prices for television packages sold outside the marketplace.

The plaintiffs included more than 2.4 million private subscribers and more than 48,000 restaurants, bars, and other commercial establishments that purchased a “Sunday Ticket” subscription. The lawsuit was originally filed in 2015 on behalf of San Francisco sports bar Mucky Duck, alleging that DirecTV, CBS, ESPN, and Fox violated antitrust law by stifling competition through exclusive agreements with the NFL that limited fans’ ability to watch games outside their home country.

DirecTV exclusively offered the “NFL Sunday Ticket” package from 1994 to 2022.

The lawsuit sought $7 billion in damages. Under federal antitrust law, damages can triple, so the $4 billion verdict would increase to $12 billion, according to Spotrac.

The NFL plans to appeal the decision to U.S. District Judge Philip Gutierrez, arguing that the damages are “excessive and unjustified,” via Michael McCann of Sportico. The league also released a statement saying it was “disappointed with the jury’s verdict today.”

“We will certainly appeal this decision as we believe class action lawsuits in this matter are meritless and without merit,” the NFL said in a statement.

NFL officials and team owners, including Robert Kraft and Commissioner Roger Goodell, argued in testimony that “Sunday Ticket” was a “premium product” that was not intended to attract large numbers of subscribers because the league did not want to negatively impact its viewership. television partners.

“The NFL has never allowed prices to fall again,” attorney Amanda Bonn said, citing DirecTV’s 2012 price drop that led to a 40% increase in subscribers. “That’s how an illegal antitrust system works.”

One of the final arguments that convinced the jury was a 2017 NFL memo that said the league was considering the possibility of broadcasting games outside the region on cable if it decided to close Sunday Ticket, as its contract with DirecTV was set to expire soon.

Additionally, a 2021 email from ESPN proposed a smaller package (possibly including a single-team subscription) at $70 per season, which the NFL rejected, according to The Boston Globe. Sunday Ticket is now available on YouTube TV and cost $349 last season.

Considering the lawsuit involved competition law, the NFL’s decision to hire attorney Beth Wilkinson was noteworthy. She has no experience handling such cases, Don Van Natta Jr.’s source said. from ESPN.

The NFL will now file post-trial motions, which are set to be heard by Judge Gutierrez on July 31. Gutierrez has previously expressed frustration with the way the plaintiffs have handled the case, overcomplicating it, and may disagree with the ruling. According to Front Office Sports, the judge may also be asked to consider changes to the “Sunday Ticket” package.

If the ruling is upheld, the NFL will appeal the ruling. This is expected to delay the case for months, if not years, and delay any payments the plaintiffs may receive. Any proposed changes to the ‘Sunday Ticket’ offer to subscribers will also be implemented.