LOS ANGELES (AP) — The NFL has been found guilty of breaking antitrust laws in its distribution of out-of-market Sunday afternoon games on the “Sunday Ticket” premium subscription service.
Even though the jury of five men and three women in a U.S. District Court awarded nearly $4.8 billion in damages Thursday to residential and commercial subscribers of “Sunday Ticket,” don’t expect any settlement checks or the shuttering of the service anytime soon.
What did the jury determine?
The league broke antitrust laws by selling “Sunday Ticket” only on DirecTV and at an inflated price. By offering the service on only one distributor and with a high price, that limited the subscriber base and satisfied concerns by CBS and Fox about preserving local ratings while the NFL got a lot of money for its broadcast rights.
How long was the trial?
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 coming to a decision.
The NFL brought in Commissioner Roger Goodell and Dallas Cowboys owner Jerry Jones to testify, but it didn’t help. The plaintiffs’ mostly used economists and video from pre-trial depositions.
Who were the plaintiffs?
The class action applied to more than 2.4 million residential subscribers and 48,000 businesses, mostly bars and restaurants, that purchased “NFL Sunday Ticket” from June 17, 2011, to Feb. 7, 2023.
What is the breakdown of the damages?
The jury awarded $4.7 billion to residential subscribers and $96 million to businesses. Because damages are trebled under federal antitrust laws, the NFL could end up being liable for $14.39 billion unless it reaches a settlement or it is reduced
The residential damages were slightly less than the $5.6 billion offered under the plaintiffs’ College Football Model but more than a model where “Sunday Ticket” would have multiple carriers and a 49.7% reduction in the subscription cost ($2.81 billion).
The business damages were much lower than the plaintiffs presented in any of their three models. The lowest was $332 million under what was called the “NFL Tax” model.
How would the NFL pay damages?
It would be spread equally among the 32 teams. That means each one could be paying as much as $449.6 million.
