NFL faces $14.1 billion judgment in ‘Sunday Ticket’ antitrust case

On Thursday, a jury ruled that the NFL must pay more than $4.7 billion for antitrust violations related to its “Sunday Ticket” package. The package allows fans to watch games outside the market but requires them to buy a package of games to do so. Given the antitrust nature of the case, the damages could triple to $14.1 billion if the verdict is upheld. The NFL, however, has said it intends to appeal the decision.

If the appeal is unsuccessful, the hefty fine would have a significant impact on the NFL, America’s richest and most popular sport. The league’s revenue last year exceeded $18 billion, and commissioner Roger Goodell has a goal of reaching $25 billion in annual revenue by 2027. Rights fees, a major source of revenue, could be destabilized by the decision, potentially affecting financial models in professional sports.

The lawsuit, filed in 2015, challenged the NFL’s practice of bundling out-of-market games into a “Sunday Ticket” package, limiting fans’ ability to watch specific teams without paying for the entire package. Plaintiffs’ attorneys argued that this practice forced fans to overpay because individual teams could offer their games at more competitive prices if they were allowed to do so independently.

Bill Carmody, the lead attorney for the plaintiff, hailed the swift decision by the Los Angeles jury, which deliberated for less than two hours. “Justice was done and it was a great day for consumers everywhere,” Carmody told CNN.

The plaintiffs argued for the ability to purchase packages of specific games or teams, rather than entire league games, outside the market. But the jury’s decision focused solely on damages and did not order changes to how games are packaged and sold. Carmody hopes the court will address that issue separately.

The NFL defended its distribution strategy, emphasizing that it provides fans with a wide selection of games for free on broadcast networks and additional games at no additional charge to cable, satellite or streaming subscribers. In response to the verdict, the NFL stated, “We are disappointed with today’s jury verdict in the NFL Sunday Ticket class action lawsuit. We believe that our media distribution strategy, which offers all NFL games on free over-the-air television in participating team markets and nationwide distribution of our most popular games, is the most fan-friendly model in sports and entertainment. We will certainly challenge this decision because we believe the class action claims in this case are without merit and without merit.”

The case centered on a package offered by DirecTV, which previously had an exclusive “Sunday Ticket” package until Google-owned YouTube TV took it over at the start of last season. The Wall Street Journal reported that the deal was worth $2 billion a year. YouTube currently charges fans $449 a year for the package.