NFL ordered to pay billions in 'Sunday Ticket' lawsuit alleging antitrust violations: NPR

LOS ANGELES — A jury in U.S. District Court on Thursday ordered the NFL to pay nearly $4.8 billion in damages after finding that the league violated antitrust laws by distributing Sunday afternoon games out of market through a premium subscription service.

The jury awarded $4.7 billion in damages to the residential class and $96 million in damages to the commercial class. Because damages can be tripled under federal antitrust laws, the NFL could ultimately be liable for $14.39 billion.

The lawsuit involved 2.4 million residential subscribers and 48,000 businesses in the United States who paid for the package of out-of-market matches from the 2011 through 2022 seasons on DirecTV. The lawsuit alleged that the league violated antitrust laws by selling its package of Sunday games at an inflated price. The subscribers also say the league limited competition by only offering “Sunday Ticket” through a satellite provider.

The NFL said it would appeal the ruling, which would go to the 9th Circuit Court of Appeals and then possibly to the Supreme Court.

If the NFL ultimately pays damages, it could cost each of the 32 teams approximately $449.6 million.

“We are disappointed with today’s jury verdict in the NFL Sunday Ticket class action lawsuit,” the league said in a statement. “We continue to believe that our media distribution strategy of airing all NFL games on free over-the-air television in our participating teams’ markets and national distribution of our most popular games, complemented by many additional choices including RedZone, Sunday Ticket and NFL+, is by far the most fan-friendly distribution model in sports and entertainment.”

“We will certainly appeal this decision as we believe the class action claims in this case are unfounded and without any merit.”

The trial lasted three weeks and included testimony from NFL Commissioner Roger Goodell and Dallas Cowboys owner Jerry Jones.

“Justice was done. The verdict upholds the consumer protections in our class. It was a great day for consumers,” said plaintiffs' attorney Bill Carmody.

During his closing remarks, Carmody showed an April 2017 memo from the NFL that showed the league was exploring a world without “Sunday Ticket” in 2017, where cable channels would air games on Sunday afternoons that weren't on Fox or CBS .

The jury, consisting of five men and three women, deliberated for nearly five hours before reaching a decision.

Judge Philip S. Gutierrez is expected to hear post-trial motions on July 31, including the NFL's request to have it ruled in favor of the league after the judge ruled the plaintiffs had not proven their case.

Payment of damages, any changes to the “Sunday Ticket” package and/or the manner in which the NFL conducts its Sunday afternoon games will be suspended until all appeals are completed.

The league insisted it had the right to sell “Sunday Ticket” under its broadcast antitrust exemption. The plaintiffs said this only applies to over-the-air broadcasts and not to paid TV.

Other professional sports leagues have also been keeping an eye on this issue, as they also offer out-of-market packages. One major difference, however, is that MLB, the NBA and the NHL offer their packages on multiple distributors and share the revenue per subscriber instead of receiving a direct rights fee.

DirecTV carried “Sunday Ticket” from its inception in 1994 through 2022. The league signed a seven-year deal with Google's YouTube TV that began with the 2023 season.

The lawsuit was originally filed in 2015 by San Francisco's Mucky Duck sports bar, but was dismissed in 2017. Two years later, the 9th Circuit, which has jurisdiction over California and eight other states, reinstated the case. Gutierrez ruled last year that the case could proceed as a class action.