What’s next after NFL loses $4.7 billion ‘Sunday Ticket’ trial

 

[June 29, 2024]  By Mike Scarcella

(Reuters) - A $4.7 billion U.S. verdict against the National Football League over the cost of its "Sunday Ticket" broadcast package could reshape how games are distributed — if it holds up.

The blockbuster June 27 verdict could be tripled under antitrust law to more than $14 billion, but the NFL said it will fight to overturn it as the decade-long legal battle enters its next stage.

Here is more about the case and what’s coming next.

WHAT IS THE CASE ABOUT?

"Sunday Ticket" provides access to out-of-market NFL games, letting fans watch their team if a matchup is not broadcast locally on CBS or Fox. The subscriber plaintiffs said the league and its teams conspired to keep the price of "Sunday Ticket" uncompetitively high to maximize profit while protecting local broadcast deals.

The plaintiffs had asked for about $7 billion in damages in Los Angeles federal court.

WHAT HAPPENED AT THE TRIAL?

The NFL denied violating U.S. antitrust law during the three-week trial, defending what it described as a premium product with a commensurate price tag.

The league argued that pooling telecast rights “promotes innovation, and incentivizes, enhances, and maintains high quality telecasts.”

NFL Commissioner Roger Goodell was among the witnesses who testified in support of the league's exclusive distribution model.

On its second day of deliberations, the jury awarded $4.6 billion to a class of 2.4 million residential subscribers, and $96 million to about 48,000 commercial subscribers such as bars and restaurants that purchased "Sunday Ticket" between 2011 and 2023, when it was distributed on DirecTV.

DirecTV was not on trial, and neither was Alphabet, whose YouTube TV now holds Sunday Ticket rights.

A ball with the National Football League (NFL) logo is spotted on a lush green field during a drill exercise at the talent identification camp for the NFL, in Lagos, Nigeria, June 17, 2024. REUTERS/Akintunde Akinleye/File Photo

COULD THE VERDICT BE OVERTURNED?

Yes. The NFL has already asked U.S. District Judge Philip Gutierrez to rule for the league as a matter of law, arguing that the evidence did not support the plaintiffs’ antitrust claims. The decision, which could come in the next few weeks, would wipe out the verdict if the judge sides with the NFL.

If the court rules for the plaintiffs, an appeal by the NFL would be decided by the San Francisco-based 9th U.S. Circuit Court of Appeals. The appeals court would likely not rule in the case until next year.

The two sides could also still reach a settlement.

WHAT'S NEXT FOR SUBSCRIBERS?

The verdict does not usher in any immediate changes for fans. Lawyers for the plaintiffs could ask the court to issue an order aimed at opening up competition for Sunday Ticket and lowering its price.

The plaintiffs, for example, have argued that individual teams could negotiate their own broadcast deals for out-of-market games given the high demand for pro football programming.

If the verdict is not overturned, the class members would be in line to receive checks in the mail for their share of the award, though legal fees and other expenses would affect the total.

(Reporting by Mike Scarcella; Editing by David Bario and Josie Kao)

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