The NFL suffered a major legal setback on Thursday as a federal judge delivered a significant ruling against the league. The ruling mandates the NFL to pay a staggering $4.7 billion in residential class damages, accompanied by an additional $96 million in commercial class damages. This decision comes at the end of a class-action lawsuit that has been winding its way through the court system for nearly a decade.
The lawsuit, originally filed in 2015, focuses on the NFL's "Sunday Ticket" package, a service that has allowed out-of-market fans to watch their home teams since its launch in 1994. Subscribers to this package between 2012 and 2022, totaling nearly 2.5 million residential and commercial customers, are at the heart of the litigation. These subscribers contend that the NFL violated antitrust laws by offering the "Sunday Ticket" as a unique and exclusive option.
The plaintiffs initially sought as much as $7 billion in damages, but the jury’s verdict fell short of that amount. Despite the lower figure, the NFL expressed its disappointment with the outcome and indicated plans to appeal the decision to the 9th Circuit.
"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," read an official NFL statement.
A contentious issue throughout the trial was the exclusivity arrangement. DirecTV held the rights to "Sunday Ticket" from its inception until 2022, after which the rights were transferred to YouTube TV last season. Critics of the NFL's strategy argue that it limited accessibility for many fans.
Amanda Bonn, representing the plaintiffs, pointed out the financial burden placed on fans. "NFL, Fox, and DirecTV agreed to make an expensive toll road that very few people would be able to afford," she said. She also emphasized the broader impact on market competition: "Every single competitor in this scheme benefited."
On the other side, Beth Wilkinson, who defended the NFL, articulated the value and choices available through "Sunday Ticket": "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, a former NFL executive, underscored the intentional design of "Sunday Ticket" as an additional offering rather than a primary one: "The NFL always wanted 'Sunday Ticket' to be an additional package. That is how it was designed since its inception."
This ruling adds another chapter to the NFL's recent legal troubles, coming on the heels of a $790 million settlement with the city of St. Louis and other entities over the 2021 relocation of the Rams.
With a hearing scheduled for July 31 for post-trial motions, one key issue that could be raised is the possibility of overturning the verdict. An appeal could also lead to more scrutiny over exclusive sports broadcasting packages moving forward, potentially impacting how sports media rights are managed in the future.
As the NFL prepares for its appeal, the ramifications of this decision may ripple through the sports industry, influencing how exclusive content is distributed and accessed by fans nationwide. The league's certainty in its media distribution model will face rigorous legal testing in the upcoming months.