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What’s Next After NFL Loses $4.7 Billion in ‘Sunday Ticket’ Lawsuit, ET BrandEquity

A $4.7 billion judgment filed by the United States against the National League of American Football over the costs of its “Sunday Ticket” broadcast package could change how games are distributed — if it is upheld.

The landmark June 27 verdict could see the damages tripled under antitrust law to more than $14 billion, but the NFL said it will fight to overturn it as a decades-long legal battle enters its next phase.

Here are more details about the case and what comes next.

WHAT IS THE CASE ABOUT?

“Sunday Ticket” provides access to out-of-market NFL games, allowing fans to watch their team if the game is not broadcast locally on CBS or Fox. The subscriber plaintiffs said the league and its teams conspired to keep the “Sunday Ticket” price at an uncompetitively high level to maximize profit while protecting local broadcast contracts.

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The plaintiffs were seeking approximately $7 billion in damages in federal court in Los Angeles.

WHAT HAPPENED AT THE TRIAL?

The NFL denied violating U.S. antitrust law during the three-week trial, defending what it described as a premium product at a proportionate price.

The league argued that pooling television broadcasting rights “promotes innovation and encourages, improves and maintains high quality television programming.”

NFL Commissioner Roger Goodell was among the witnesses who testified in support of the league’s exclusive distribution model.

On the second day of deliberations, the jury awarded $4.6 billion to a group of 2.4 million individual subscribers and $96 million to about 48,000 commercial subscribers, such as bars and restaurants, that purchased “Sunday Ticket” between 2011 and 2023, when it was distributed on DirectTV’s internet.

DirecTV was not part of the hearing, nor was Alphabet, whose YouTube TV now has rights to Sunday Ticket.

Can the judgment be overturned?

Yes. The NFL has already asked U.S. District Judge Philip Gutierrez to rule the league as the law allows, arguing that the evidence does not support the plaintiffs’ antitrust claims. The decision, which could come in the next few weeks, would overturn the verdict if the judge sides with the NFL.

If the court rules in favor of the plaintiffs, the NFL’s appeal will go to the San Francisco-based U.S. Court of Appeals for the 9th Circuit. The appeals court is not expected to rule on the case until next year.

The two sides can still reach an agreement.

WHAT’S NEXT FOR SUBSCRIBERS?

The ruling does not mean immediate changes for fans. Plaintiffs’ lawyers could ask the court to issue an order to open up competition to Sunday Ticket and lower its price.

For example, the plaintiffs argued that individual teams could negotiate their own deals to broadcast matches played abroad, given the high demand for professional football programming.

If the verdict is not overturned, class members could receive checks in the mail for their share of the award, though legal fees and other expenses would affect the total award amount.

  • Published on June 29, 2024 at 16:02 IST

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