NFL Ordered to Pay $4.7 Billion in Damages Over “Sunday Ticket” Antitrust Lawsuit

In a landmark decision, the NFL has been ordered to pay $4.7 billion in residential class damages and $96 million in commercial class damages. This ruling stems from a class action lawsuit filed by subscribers to the “NFL Sunday Ticket” service. The verdict was initially reported by journalist Meghann Cuniff.

The lawsuit alleged that the NFL, along with its teams and network partners (DirecTV, CBS, ESPN, and Fox), violated antitrust laws by limiting competition and inflating the price of the out-of-market TV package. The federal jury’s decision includes $96 million in damages to commercial class plaintiffs and $4 billion to residential class plaintiffs.

The plaintiffs in the case included over 2.4 million residential subscribers and more than 48,000 commercial establishments, such as restaurants and bars, that had purchased subscriptions to “Sunday Ticket.” The lawsuit, originally filed in 2015 on behalf of San Francisco’s Mucky Duck sports bar, claimed that DirecTV, CBS, ESPN, and Fox engaged in exclusive agreements with the NFL that restricted fans’ access to out-of-market games, thereby suppressing competition.

DirecTV held the exclusive rights to the “NFL Sunday Ticket” package from 1994 until 2022. The plaintiffs sought $7 billion in damages, and under federal antitrust law, these damages can be tripled. Thus, the $4 billion verdict could potentially escalate to $12 billion.

The NFL has announced its intention to appeal the decision to U.S. District Judge Philip Gutierrez, arguing that the damages are “excessive and unreasonable.” In a statement, the league expressed disappointment with the jury’s verdict and asserted that the class action claims were baseless and without merit.

During the trial, NFL team owners, including Jerry Jones and Robert Kraft, along with Commissioner Roger Goodell, defended “Sunday Ticket” as a premium product. They argued that the league did not aim to attract a large number of subscribers to avoid negatively impacting TV ratings for its network partners. Plaintiffs’ attorney Amanda Bonn countered this argument, highlighting a 2012 drop in DirecTV prices that led to a 40% surge in subscribers, exemplifying how the alleged antitrust scheme worked.

In closing arguments, plaintiffs introduced a 2017 NFL memo indicating that the league was considering broadcasting out-of-market games on cable as an alternative to “Sunday Ticket.” Additionally, a 2021 email from ESPN suggested a less expensive package priced at $70 per season, which the NFL rejected.

Currently, the “Sunday Ticket” service is available through YouTube TV, priced at $349 last season. Legal analysts have noted that the NFL’s decision to use attorney Beth Wilkinson, who lacks experience in antitrust cases, may have been a misstep.

Judge Gutierrez will hear post-trial motions on July 31, during which the NFL will likely contest the verdict. The judge has previously expressed frustration with the plaintiffs’ approach, suggesting that the case was overly complicated. If the verdict stands, the NFL plans to appeal, potentially prolonging the resolution of the case and delaying any payments to the plaintiffs. Changes to the “Sunday Ticket” package could also be considered.

As the legal battle continues, the final outcome of this significant antitrust lawsuit remains uncertain, with potential ramifications for the NFL and its future broadcasting agreements.