LOS ANGELES (AP) — The NFL has been found guilty of violating antitrust laws by distributing out-of-market Sunday afternoon games on the premium subscription service “Sunday Ticket.”
Although the jury of five men and three women in a U.S. district court granted almost 4.8 billion dollars As for the damage caused Thursday to residential and commercial “Sunday Ticket” subscribers, don’t expect any compensation checks or service shutdown anytime soon.
What did the jury determine?
The league violated antitrust laws by selling “Sunday Ticket” only on DirecTV and at an inflated price. By offering the service through a single distributor and at a high price, it limited the subscriber base and satisfied CBS and Fox’s concerns about preserving local ratings while the NFL received big money for its broadcast rights.
How long did the trial last?
Three weeks. It began with opening statements on June 6 and featured 10 days of testimony before closing arguments on Wednesday. The jury deliberated for nearly five hours Wednesday and Thursday before reaching a decision.
The NFL brought in Commissioner Roger Goodell and Dallas Cowboys owner Jerry Jones to testify, but to no avail. Plaintiffs relied primarily on economists and video of pretrial depositions.
Who were the plaintiffs?
The class action lawsuit applied to more than 2.4 million residential subscribers and 48,000 businesses, mostly bars and restaurants, who purchased “NFL Sunday Ticket” between June 17, 2011, and Feb. 7, 2023.
What is the breakdown of damages?
The jury awarded $4.7 billion to residential subscribers and $96 million to businesses. Because damages are tripled under federal antitrust laws, the NFL could end up liable for $14.39 billion unless it settles or is reduced.
Residential damages were slightly less than the $5.6 billion offered under the plaintiffs’ College Football Model, but greater than a model in which “Sunday Ticket” would have multiple operators and a 49.7% reduction in subscription costs ($2.81 billion).
The business damages were much lower than those claimed by the plaintiffs under any of their three models. The lowest was $332 million under what was called the “NFL tax” model.
How would the NFL pay for damages?
It would be split evenly among the 32 teams. That means each team could be paying up to $449.6 million.
Will there be any immediate changes?
Changes to the Sunday Ticket package and/or the way the NFL broadcasts its Sunday afternoon games would be suspended until all appeals are concluded. Consideration could be given to offering team-by-team or week-by-week packages along with the price reduction.
ESPN proposed offering “Sunday Ticket” for $70 per season with team-by-team packages in 2022, but the NFL rejected it before opting for YouTube TV instead.
If the NFL had offered team-by-team packages from the beginning, one of the group’s key members likely would not have been part of the lawsuit.
Rob Lippincott, a New Orleans native who moved to California, purchased “Sunday Ticket” just for Saints games.
“He just wanted the Saints. If he had the option to buy a single-team package and watch Saints games, he absolutely would have done so,” plaintiffs’ attorney Amanda Bonn said during her opening remarks on June 6.
But college football had to change, why not the NFL?
The landmark 1984 college football telecast case was decided by the United States Supreme Court at the United States District Court level.
The NFL said it would appeal the verdict. That appeal would go to the Ninth Circuit Court of Appeals and then possibly the Supreme Court.
It wouldn’t be the first time the Ninth Circuit has heard this case.
The lawsuit was originally filed in 2015 by the Mucky Duck sports bar in San Francisco. On June 30, 2017, U.S. District Judge Beverly Reid O’Connell dismissed the lawsuit and ruled in favor of the NFL. Two years later, the Ninth Circuit Court of Appeals reinstated the case.
What were the keys to the plaintiffs’ case?
During his closing remarks, Lead attorney Bill Carmody showed an NFL memo from April 2017 which showed the league was exploring a world without “Sunday Ticket” in 2017, where cable channels would air out-of-market games on Sunday afternoons that weren’t shown on Fox or CBS.
Judge Philip S. Gutierrez expressed frustration with the plaintiffs’ lawyers midway through the trial, but Carmody’s closing argument was clear and easy to understand.
Was the NFL the loser in this trial?
The NFL may be the king of American sports and one of the most powerful leagues in the world, but it often loses in court, especially in Los Angeles. It was in federal court in Los Angeles in 1982 that a jury ruled that the league violated antitrust rules by not allowing Al Davis to move the Raiders from Oakland to Los Angeles.
Whats Next?
All eyes are focused on July 31, when Gutiérrez is scheduled to hear post-trial motions, including the NFL’s request that he rule in favor of the league because the judge determined that the plaintiffs failed to prove Their case.
Could this affect other sports?
All of the major leagues in the United States offer out-of-market packages. They are closely watching this case because the sale of out-of-market broadcast rights by teams, especially in baseball, would further separate the haves from the have-nots.
However, one major difference is that the MLB, NBA and NHL sell their out-of-market packages at multiple distributors and share revenue per subscriber rather than receiving a direct fee for the rights.
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