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NFL encountered a substantial setback on Thursday with implications for consumers who have purchased the NFL’s “Sunday Ticket” package. A federal judge has mandated the league to compensate $4.7 billion in damages to the residential class and an additional $96 million to the commercial class, concluding what has become known as the “Sunday Ticket” case, according to MMQB.
Following this courtroom defeat, the NFL has indicated its intention to appeal the ruling. ESPN reports that a hearing is scheduled for July 31 to address post-trial motions, including one seeking to overturn the verdict, with the NFL planning to appeal to the 9th Circuit.
The league issued the following statement: “We are disappointed with the jury’s verdict today in the NFL Sunday Ticket class action lawsuit. We continue to stand by our media distribution strategy, which ensures all NFL games are broadcast for free over-the-air in team markets, along with national coverage of our most popular games, supplemented by options like RedZone, Sunday Ticket, and NFL+. We firmly believe the class action claims in this case lack merit and intend to contest this decision. We extend our thanks to the jury for their service and to Judge Gutierrez for overseeing the trial.”
This class-action lawsuit, initiated in 2015 and progressing through the legal system for nearly a decade, sought damages amounting to $7 billion from the NFL. The core issue revolves around whether the NFL violated antitrust laws by offering the “Sunday Ticket” package to consumers. Introduced in 1994, “Sunday Ticket” provided out-of-market fans with access to their favorite team’s games. For example, prior to 1994, a Steelers fan residing in Seattle had limited options to watch Pittsburgh play, whereas “Sunday Ticket” provided a comprehensive solution to view every Steelers game.
The plaintiffs’ argument alleges collusion between the NFL and its network partners to inflate the price of “Sunday Ticket.” According to Amanda Bonn, attorney for the plaintiffs, the cost of “Sunday Ticket” is prohibitively high for many consumers. “NFL, Fox, CBS, and DirecTV collaborated to establish an expensive toll road that few can afford,” Bonn stated in her opening statement, reported by the Associated Press. “Every participant in this arrangement benefited.”
In response, NFL attorney Beth Wilkinson argued that the premium pricing of “Sunday Ticket” reflects its value as a high-quality offering. “This case centers on consumer choice. ‘Sunday Ticket’ is a valuable, premium product, offering fans a range of viewing options. Our aim is to maximize free broadcast accessibility,” Wilkinson remarked, as per AP reports.
Former NFL executive Steve Bornstein, a witness in the case, testified that the NFL designed “Sunday Ticket” to complement, rather than compete with, network partners’ broadcasts, aiming to preserve their TV ratings share.
This lawsuit encompasses all residential and commercial customers who subscribed to “Sunday Ticket” from 2012 to 2022, totaling nearly 2.5 million individuals, according to AP estimates. DirecTV held the “Sunday Ticket” Package from 1994 until 2022, when YouTube TV assumed operations for the latest season.
While the NFL typically avoids protracted legal battles, recent events underscore its willingness to settle complex cases. For instance, in 2021, the league disbursed $790 million to the city of St. Louis and other entities following a settlement linked to the Rams’ relocation.
