The National Football League (NFL) faced a significant legal defeat on Thursday when a federal judge ruled against the league in a pivotal class-action lawsuit. The court ordered the NFL to pay a staggering $4.7 billion in residential class damages and an additional $96 million in commercial class damages. This ruling marks one of the most substantial judicial setbacks in the league’s history.
The ruling stems from a class-action lawsuit filed back in 2015, which alleged that the NFL violated antitrust laws with its "Sunday Ticket" package. Originating in 1994, "Sunday Ticket" was designed as a unique offering for out-of-market fans who wanted to follow their home teams. Over nearly a decade, the lawsuit scrutinized the NFL’s practice, seeking to determine whether it unfairly restricted competition and choice for viewers.
During the trial, the class-action suit focused on the experiences of nearly 2.5 million subscribers, both residential and commercial, who used the "Sunday Ticket" service between 2012 and 2022. Plaintiffs in the case initially sought $7 billion in damages, arguing that the NFL, along with broadcasters like Fox and providers like DirecTV, created an exclusivity agreement that limited consumer options. Amanda Bonn, a representative for the plaintiffs, criticized this setup, saying, "NFL, Fox, and DirecTV agreed to make an expensive toll road that very few people would be able to afford.... Every single competitor in this scheme benefited."
The NFL, adamant about contesting the verdict, expressed their disappointment. In a statement, the league said, "We are disappointed with the jury's verdict today in the NFL Sunday Ticket class action lawsuit. We continue to believe that our media distribution strategy...is by far the most fan-friendly distribution model in all of sports and entertainment. We will certainly contest this decision as we believe that the class action claims in this case are baseless and without merit." The NFL plans to appeal the decision to the 9th Circuit Court, seeking to overturn the substantial monetary penalties.
The “Sunday Ticket” package played a crucial role for fans who wanted access to NFL games beyond their local broadcasts. This service was exclusively carried by DirecTV from its inception in 1994 until 2022, when YouTube TV acquired the rights. The lawsuit and subsequent ruling have cast a shadow over the future of exclusive sports broadcasting packages, potentially paving the way for increased scrutiny and a reshaped landscape in sports media rights.
Beth Wilkinson, another representative during the trial, emphasized the value and variety available to fans, stating, "The case is about choice. This is a valuable, premium product. Think about all the choices available to fans. We want as many people as possible to watch the free broadcasts."
Steve Bornstein, an executive connected to the "Sunday Ticket" package, defended the intent behind the product, explaining, "The NFL always wanted 'Sunday Ticket' to be an additional package. That is how it was designed since its inception."
This case isn't the first major financial consequence the NFL has faced in recent years. In 2021, the league settled with the city of St. Louis and other entities for $790 million due to the controversial relocation of the Rams. The current ruling adds another layer of financial and legal pressure on the league, intensifying the spotlight on its business practices.
A hearing is set for July 31 where post-trial motions, including the possibility of overturning the verdict, will be considered. Pending the appeal results, the ruling may incite further examination of how exclusive broadcasting rights are handled across professional sports leagues, potentially leading to broader changes in the industry.
As the NFL prepares its defense for the upcoming appeal, the sports community and millions of fans who rely on packages like "Sunday Ticket" will be watching closely, eager to see how this landmark case will shape the future of sports broadcasting.