Jury orders NFL to pay nearly $4.8 billion in ‘Sunday Ticket’ case for violating antitrust laws – Troy Record

FILE – The NFL logo is seen during the NFL Super Bowl 58 football game on Sunday, Feb. 11, 2024, in Las Vegas. Opening arguments are expected to begin Thursday, June 6, 2024, in federal court in a class action lawsuit brought by “Sunday Ticket” subscribers who allege the NFL violated antitrust laws. The lawsuit was filed in 2015 and has weathered numerous challenges, including a dismissal that was overturned. (AP Photo/Adam Hunger, File)

By JOE REEDY

LOS ANGELES (AP) — A jury in U.S. District Court on Thursday ordered the NFL to pay nearly $4.8 billion in damages after finding that the league violated antitrust laws by distributing Sunday afternoon games out of market through a premium subscription service.

The jury awarded $4.7 billion in damages to the residential class and $96 million in damages to the commercial class.

The lawsuit involves 2.4 million residential subscribers and 48,000 businesses who paid for the out-of-market package of games from the 2011 through 2022 seasons on DirecTV. The lawsuit alleges the league violated antitrust laws by selling its Sunday game package at an inflated price. Subscribers also say the league restricted competition by offering “Sunday Ticket” only through a satellite provider.

The NFL said it would appeal the ruling, which would go to the 9th Circuit and then possibly to the Supreme Court.

“We are disappointed with today’s jury verdict in the NFL Sunday Ticket class action lawsuit,” the league said in a statement. “We continue to believe that our media distribution strategy of airing all NFL games on free over-the-air television in our participating teams’ markets and national distribution of our most popular games, complemented by many additional choices including RedZone, Sunday Ticket and NFL+, is by far the most fan-friendly distribution model in sports and entertainment.”

“We will certainly appeal this decision as we believe the claims in this case are unfounded and without merit.”

The jury, consisting of five men and three women, deliberated for nearly five hours before reaching a decision.

“This case transcends football. This case is important,” said Bill Carmody, attorney for the plaintiffs, during Wednesday’s closing arguments. “It’s about fairness. It’s about telling the 32 team owners who collectively own all the major TV rights, the most popular content in the history of TV, that that’s what they have. It’s about telling them that even you violate antitrust laws can’t ignore. Even you can’t conspire to overcharge consumers. Even you can’t hide the truth and think you can get away with it.”

The league insisted it has the right to sell “Sunday Ticket” under its broadcast antitrust exemption. The plaintiffs say this only applies to terrestrial broadcasts and not to paid TV.

DirecTV carried “Sunday Ticket” from its inception in 1994 through 2022. The league signed a seven-year deal with Google’s YouTube TV that began with the 2023 season.

The lawsuit was originally filed in 2015 by San Francisco’s Mucky Duck sports bar, but was dismissed in 2017. Two years later, the 9th US Circuit Court of Appeals, which has jurisdiction over California and eight other states, reinstated the case. Gutierrez ruled last year that the case could proceed as a class action.

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AP NFL: https://apnews.com/hub/nfl