A California federal jury delivered a stunning blow to the National Football League (NFL) and its teams, awarding two classes of DirecTV Sunday Ticket subscribers about $4.7 billion in damages. This antitrust trial centered on claims that the NFL and DirecTV illegally inflated the price of the sports broadcast package.
NFL Hit With $4.7B Verdict : Jury Reaches Verdict After Four-Week Trial
After a four-week trial and approximately six hours of deliberations over two days, the jury accepted allegations from millions of Sunday Ticket subscribers. The certified classes argued that the NFL, its 32 teams, and DirecTV violated the Sherman Act by unreasonably restraining trade and forming an illegal monopoly.
Plaintiffs Sought Over $7 Billion in Damages
The subscribers initially sought over $7 billion in damages. The verdict amount, however, did not match any of the three distinct damages models presented by the plaintiffs. The second-lowest model sought about $3.5 billion.
NFL Hit With $4.7B Verdict : Potential Impacts of the Verdict
This $4.7 billion verdict — which could potentially be tripled under federal antitrust law — may influence how the NFL markets and bundles Sunday games not broadcast for free on network television.
Reaction from the Parties Involved
Attorneys for the NFL declined to comment. William C. Carmody of Susman Godfrey LLP, representing the plaintiffs, hailed the verdict as a “great verdict for consumers in America.” The plaintiffs’ attorneys celebrated the win outside the courtroom.
Breakdown of the Award
The jury awarded over $4.6 billion to residential subscribers and almost $97 million to commercial subscribers, including bars and restaurants.
NFL Hit With $4.7B Verdict : High-Profile Testimonies
The trial featured testimonies from NFL Commissioner Rodger Goodell, Dallas Cowboys owner Jerry Jones, and several other high-ranking executives from the NFL, DirecTV, Fox Sports, and CBS Sports. The jury also viewed video depositions of New England Patriots owner Robert Kraft.
Evidence and Arguments
Plaintiffs relied on emails and internal documents from the NFL and DirecTV to demonstrate side agreements that kept the Sunday Ticket prices artificially high. The NFL, however, downplayed these documents as “snippets” taken out of context, instead relying on live testimonies to deny any collusion.
NFL Hit With $4.7B Verdict : Antitrust Law and Television Rights
The plaintiffs argued that the NFL’s policy of pooling television rights for out-of-market games violated antitrust laws. They presented several damage theories, including one suggesting that if teams had negotiated their own rights, like in college football, the Sunday Ticket package would not need to exist, and subscribers could claim a full refund.
Sports Broadcasting Act of 1961
The trial also touched on the Sports Broadcasting Act of 1961, which allows the NFL to pool its teams’ television rights for free over-the-air games. However, this act does not cover subscription models like the Sunday Ticket.
NFL Hit With $4.7B Verdict : Class Action Details
The sprawling class action included at least 2.4 million residential subscribers and 48,000 bars, restaurants, and other establishments that purchased the Sunday Ticket package after June 17, 2011.
Verdict Form and Conspiracy Findings
Although DirecTV was not a defendant, the jury needed to find it part of the conspiracy to rule in favor of the plaintiffs. The plaintiffs argued that pressure from CBS and Fox motivated the NFL to enter the antitrust conspiracy.
Future Implications
The victory may compel the NFL to consider alternative models for out-of-market games not broadcast for free. The case’s outcome and the ongoing shift of Sunday Ticket to YouTube TV, where prices remain high, underscore the evolving landscape of sports broadcasting rights.
Legal Representation
The subscribers were represented by a team from Susman Godfrey LLP, Hausfeld LLP, and Langer Grogan & Diver PC. The NFL and its clubs were represented by Wilkinson Stekloff LLP and Covington & Burling LLP.
