A class action case challenging the legality of the NFL’s Sunday Ticket package is set to shake up television rights deals in professional sports and the way teams generate revenue with opening arguments scheduled for Thursday. The case, which was first introduced in 2015, focuses on the NFL’s package of games that are not shown nationally on other networks and are outside of a local market. The lawsuit alleges that by limiting the broadcast of these “out-of-market” games to the Sunday Ticket package, the NFL is forcing customers who only want to watch one team or a small group of teams to pay more than they should.
The plaintiffs argue that if each team were to independently offer their games at a competitive price through internet streaming and satellite and cable television carriage, fans across the country would have more affordable access to watch their preferred team. Instead, the NFL has opted for creating a more lucrative monopoly by offering all games through the Sunday Ticket package. The plaintiffs are seeking billions in potential damages, which could be tripled under antitrust law. However, the NFL contends that the current arrangement provides fans with a broader selection of games at a reasonable value.
Potential witnesses in the case include NFL Commissioner Roger Goodell, team owners Jerry Jones and Robert Kraft, along with executives from various television networks and DirecTV. DirecTV had previously held the exclusive rights to the Sunday Ticket package until it was acquired by Google-owned YouTube TV at the beginning of last season for a reported $2 billion per year. YouTube TV charges fans $449 annually for the package. The case is being heard in federal court in Los Angeles after being dismissed by a district court in 2017 and reinstated by the US Court of Appeals in 2019. Lawyers from the national firm Susman Godfrey are arguing the case, known for settling major lawsuits such as the case against Fox News by Dominion Voting Systems for over $787 million before going to trial.
The NFL has a history of settling high-profile cases rather than having its practices scrutinized in open court, including a $790 million settlement in a case brought by plaintiffs in St. Louis objecting to the relocation of the Rams to Los Angeles in 2016. Another example is the $765 million settlement in 2013 that established a fund to compensate players who suffered brain injuries from concussions during their playing careers. The outcome of the ongoing case challenging the NFL’s Sunday Ticket package could have significant implications on television rights deals in professional sports and how teams monetize their games in the future. It remains to be seen how the court will rule and what impact it will have on the broadcasting landscape in the sports industry.
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