Courtesy of AP Photo / Adam Hunger
The Breakdown
The NFL Sunday Ticket lawsuit is a class action lawsuit that alleged that the NFL and DirecTV had violated antitrust laws by their exclusive agreement for the Sunday Ticket package.
This lawsuit covered 2.4 million residential subscribers, as well as 48,000 businesses, in the United States. All these subscribers had paid for the NFL “Sunday Ticket” package on DirecTV for out-of-market games. These games, because of local broadcasters’ (like CBS and Fox) exclusive rights, are unable to be live-streamed through traditional cable TV.
Claiming that the NFL broke antitrust laws by selling the package at a highly-inflated price, the subscribers affected also claim that the NFL restricted competition, as the “Sunday Ticket” was offered only through a satellite provider, which created an illegal monopoly over live NFL game broadcasts.
Hondo S. Carpenter Sr. and Attorney Jonathan Schopp explained the lawsuit well on a recent episode of the “Las Vegas Raiders Insider Podcast.”
"This is something that has gone on a long time," Schopp said. "It just went to a jury verdict, very interesting. What the plaintiffs are saying in this, is: 'Look, the NFL worked together with its broadcast partners to inflate the price of Sunday Ticket.' That is basically the simple argument the plaintiffs have made. The NFL, on the other hand, says: 'Hey, Sunday Ticket is expensive because it is a premium product. This is a case about choice, this is a valuable premium product. You think about all the choices available; we want as many people watching the free broadcast as they can, and this is a premium product.”
Courtesy of AP Photo / Damian Dovarganes
The Verdict
On June 27, 2024, a jury in the United States District Court ordered the NFL to pay $4,707,259,944.64 in damages after ruling that they did in fact violate antitrust laws. And, according to the U.S. Department of Justice, under federal antitrust laws, the damages to be given to those affected could be tripled. This means that the league could end up being liable for $14,121,779,833.92.
As the jury consisting of five men and three women approached their verdict, they narrowed down the numbers.
They found the league liable for $4,610,331,671.74 in damages to the residential class, or at-home subscribers. These at-home subscribers, making up most of the number of those affected, are people who bought the package on their personal TVs in their homes.
The remaining number of $96,928,272.90 totals the damages specific to the commercial class, or those that are business subscribers. These business subscribers are bars, restaurants, and other institutions that bought the package for their customers to watch while at the institution.
This verdict could, and will, have significant financial consequences on the league itself, but more specifically: its teams. Because damages are to be equally spread among the NFL’s 32 teams, each team will most likely owe $441.3 million.
Courtesy of Getty Images / Ezra Shaw
What This Means for the League
A $4.7 billion dollar judgment for the NFL is quite the consequence. However, an even greater repercussion we may see is the possibility of a change in the league’s revenue model.
For a long time, the league has had a practice of evenly distributing media dollars that it’s earned among its 32 teams. As the verdict of the trial holds fast, individual teams would be able to seek whatever the market would allow for their out-of-market games.
Since these out-of-market games are being taken away from “Sunday Ticket,” we might see some on streaming platforms like Amazon or Netflix. A crazy concept to some, but a possible new reality for many.
Courtesy of Getty Images / Rich Graessle / Icon Sportswire
What This Means for Fans
If you’ve subscribed to “Sunday Ticket,” here’s what you need to know:
Who is Eligible?
Millions of “residential” subscribers, as well as tens of thousands of bars, restaurants, and other “commercial” institutions, are eligible for a substantial payout from the settlement.
Before any nitty-gritty, let’s talk about who will qualify for these payments.
This class action lawsuit sets very vague parameters. Any subscriber who bought the “Sunday Ticket” package anywhere from June 2011 to February 2023 are eligible for a substantial payout.
One limit is made clear, though: these “Sunday Ticket” subscribers must have paid for the package through DirecTV. So, if a subscriber got the “Sunday Ticket” package for free through the NFLST.tv streaming service, they will not qualify for any settlement.
The Timeline
Unfortunately, these subscribers may not see any payouts for a number of years.
The league is set to file post-trial motions for the judge to hear on July 31.
If those motions do not work, the league has already stated that it will appeal the case. This would mean that the case would go to the U.S. Court of Appeals for the 9th Circuit. This Court has no time limit, but the U.S. Court of Appeals for the 9th Circuit does state that most cases are settled between three months and a year following its submission.
If the NFL and the “Sunday Ticket” subscribers continue to go back and forth, even following the appeals process, the case could go to the Supreme Court.
Because all damages are stayed, or “frozen”, until the appeals process ends. Simply, this means that it could take many years before the league will actually have to pay any amount of damages back to its subscribers.
The Payouts
If you are a subscriber yourself, you may be asking, “Well, how much money might I actually receive?” No one really knows.
The plaintiffs’ (subscribers’) attorneys might take up to 40% of the total payout designated to subscribers. What’s left after that could mean that each of the 2.4 million residential class members could get an average of $3,450.
“What if I paid for ‘Sunday Ticket’ for the entire period that the lawsuit covers?” “What if I only paid for one season?” Again, no one knows. It is all up to the courts.
The Fate of “Sunday Ticket”
Any changes to be made to the “Sunday Ticket” package are stayed on appeal. Simply put, the NFL will not have to make any required adjustments to their inflated package until the appeal process is over.
Because of this, “Sunday Ticket” is here to stay (for now), and it will not be getting any less expensive. Even though the lawsuit is focusing on the DirecTV-offered package of the “Sunday Ticket,” which began all the way back in 2015, the package is still currently being offered for $349 (annually) on the streaming platform, YouTubeTV.
If the verdict decided is upheld, the judge is able to consider petitioned structural changes to the package itself. However, any changes would not go into effect until after the appeals process has concluded and been finalized. So, really, we’re stuck with the dreaded “Sunday Ticket” for a while.
Courtesy of AP Photo / Damian Dovarganes
A Waiting Game
Any final outcomes we hope to see from this case depends on how it does in court.
As it goes through the appeals process, and possibly the Supreme Court, one ultimate thing has to happen for subscribers to see any cash: the league must choose to settle with the plaintiffs’ attorneys. However, so far, they’ve been quick to contest these attorneys, as well as any allegation, in the legal system.
On how long it will take to see any real, final conclusions: again, no one really knows.
Is it completely crazy to think any of these millions of subscribers of the “Sunday Ticket” will be paid back any damages? No, it’s not. But, it will be a while before anyone even hears talk of payouts being distributed. It will be quite the waiting game.
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