NFL Faces $14.1 Billion Verdict in ‘Sunday Ticket’ Antitrust Case

On Thursday, a jury ruled that the NFL must pay over $4.7 billion for anti-trust violations related to its “Sunday Ticket” package. This package allows fans to watch out-of-market games but requires them to purchase a bundle of games to do so. Given the anti-trust nature of the case, the damages could be tripled to $14.1 billion if the verdict is upheld. The NFL, however, has stated its intention to appeal the decision.

Should the appeal fail, this substantial financial penalty would significantly impact the NFL, the wealthiest and most popular sport in America. Last year, the league’s revenue exceeded $18 billion, and Commissioner Roger Goodell has a goal of reaching $25 billion in annual revenue by 2027. Rights fees, which are a primary revenue source, could be destabilized by this decision, potentially affecting financial models across professional sports.

The lawsuit, initiated in 2015, challenged the NFL’s practice of bundling out-of-market games into the “Sunday Ticket” package, limiting the ability for fans to watch specific teams without paying for the entire package. The plaintiffs’ attorneys argued that this practice forced fans to overpay, as individual teams could offer their games at more competitive prices if allowed to do so independently.

Bill Carmody, the lead attorney for the plaintiffs, expressed satisfaction with the swift decision by the Los Angeles jury, who deliberated for less than two hours. “Justice was done, and it was a great day for consumers everywhere,” Carmody told CNN.

The plaintiffs had argued for the option to purchase packages of specific games or teams rather than the entire league’s out-of-market games. However, the jury’s decision focused solely on the damages and did not mandate changes to how the games are packaged and sold. Carmody hopes the court will address this issue separately.

The NFL defended its distribution strategy, emphasizing that it provides fans with a wide range of games for free on broadcast networks and additional games without extra charges for cable, satellite, or streaming service subscribers. In response to the verdict, the NFL stated, “We are disappointed with the jury’s verdict today in the NFL Sunday Ticket class action lawsuit. We believe that our media distribution strategy, which offers all NFL games on free over-the-air television in the participating teams’ markets and national distribution of our most popular games, is the most fan-friendly model in sports and entertainment. We will certainly contest this decision as we believe the class action claims in this case are baseless and without merit.”

The case primarily addressed the package as offered by DirecTV, which previously held the exclusive “Sunday Ticket” package until Google-owned YouTube TV acquired it at the beginning of last season. The Wall Street Journal reported that this deal cost $2 billion annually. YouTube currently charges fans $449 per year for the package.