In a major setback for the National Football League (NFL), a jury in U.S. District Court has ordered the NFL to pay nearly $4.8 billion in damages. The jury ruled that the NFL violated antitrust laws regarding its distribution of out-of-market Sunday afternoon games on a premium subscription service. Out-of-market game packages broadcast sporting events to areas where they are not available on local TV networks.
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Details of the Lawsuit and the Damages
The lawsuit covered 2.4 million residential subscribers and 48,000 businesses who paid for AT&T’s (NYSE:T) DirecTV’s out-of-market games from 2011 to 2022. It claimed the league violated antitrust laws by inflating prices and restricting competition by offering “Sunday Ticket” only through a satellite provider. The trial lasted for three weeks and included testimony from NFL Commissioner Roger Goodell and Dallas Cowboys owner Jerry Jones.
After ruling the league violated antitrust laws, the jury awarded $4.7 billion to the residential class and $96 million to the commercial class. These damages could be tripled under federal antitrust laws, making the NFL liable for paying up to $14.39 billion.
Commenting on the ruling, the NFL stated that it would appeal the verdict. The appeal would go to the 9th Circuit Court of Appeals and could possibly end up in the U.S. Supreme Court. If the NFL does end up paying the damages, each of the 32 teams in the NFL could end up paying around $449.6 million.
The NFL has signed a seven-year “Sunday Ticket” deal with Google’s (NASDAQ:GOOGL) YouTube that started with the 2023 season, moving away from the previous exclusive arrangement with DirecTV.
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