Late last week, a jury in U.S. District Court determined that the NFL had violated antitrust laws in distributing out-of-market Sunday afternoon games on DirecTV’s “Sunday Ticket.” The jury awarded $4.7 billion in damages to 2.4 million residential subscribers and $96 million in damages to 48,000 businesses. The NFL plans to appeal the ruling. If the appeals fail, the total damages of nearly $4.8 billion will be split among the 32 NFL teams, meaning each team, including the New York Giants, would be obligated to pay out $449.6 million each. Antitrust cases like this generally result in tripled damages by law, bringing the potential total to over $14 billion. Post-trial motions will begin on Wednesday, July 31 [698e199a] [bce22bce].
In other news, the jury in the class-action lawsuit filed by 'Sunday Ticket' subscribers against the NFL is expected to begin deliberations on Wednesday. The lawsuit, which covers 2.4 million residential subscribers and 48,000 businesses, claims the league broke antitrust laws by selling its package of Sunday games at an inflated price and restricting competition by offering 'Sunday Ticket' only on a satellite provider. If the NFL is found liable, a jury could award $7 billion in damages, but that number could balloon to $21 billion because antitrust cases can triple damages. The lawsuit was originally filed in 2015 and was dismissed in 2017, but was reinstated by the 9th Circuit Court of Appeals. The losing side is expected to appeal to the 9th Circuit and possibly the Supreme Court [bce22bce].
The recent verdict in the NFL Sunday Ticket trial has shed light on the approach taken by Major League Baseball (MLB) and the National Hockey League (NHL) in similar broadcasting litigation [4242b013]. Nine years ago, MLB and NHL faced similar accusations of violating antitrust law by blacking out games to exploit TV and streaming deals. However, instead of going to trial, MLB and NHL settled the class actions, offering fans cheaper options to buy single-team broadcasts. Since then, the Regional Sports Network (RSN) model has faced challenges due to cord-cutting. In contrast, the NFL provides local fans with free access to games on TV, while out-of-town fans need to buy the Sunday Ticket for access to all teams' games. The NFL's decision to go to trial backfired, resulting in a jury imposing about $4.7 billion in damages. The NFL may still appeal the verdict or negotiate a deal with the plaintiffs' attorneys. However, if the verdict stands, the NFL may be forced to radically change its broadcasting arrangements, which have been highly successful in terms of TV ratings. The article concludes that MLB and NHL made a shrewder strategy by settling TV class actions instead of going to trial [4242b013].
According to an analysis by Jeffrey A. Cohen on Law.com International, the recent verdict in the NFL Sunday Ticket trial could have broad implications for all professional sports leagues. The jury's multibillion-dollar verdict against the NFL for violating antitrust laws raises questions about the actions of other leagues under Sections 1 and 2 of the Sherman Antitrust Act. The article highlights that professional sports leagues, including Major League Baseball (MLB), have faced scrutiny for their actions under the Sherman Act for over a century. The MLB was previously ruled exempt from the Sherman Act by the U.S. Supreme Court. The NFL's loss in the Sunday Ticket trial may prompt other leagues to reevaluate their broadcasting arrangements and potentially settle similar class-action lawsuits instead of going to trial. The article emphasizes that the NFL's decision to go to trial backfired, resulting in a significant financial blow. The outcome of the NFL Sunday Ticket trial could lead to significant changes in how professional sports leagues distribute their games and handle antitrust issues [2b7c42cd].