The NFL faces a monumental legal and financial challenge in the wake of a federal judge's ruling on Thursday. The league has been ordered to compensate $4.7 billion in residential class damages and an additional $96 million in commercial class damages. This decision is the latest development in a nearly decade-long class-action lawsuit concerning the NFL's “Sunday Ticket” package.
Originally filed in 2015, the lawsuit contends that the NFL violated antitrust laws through its offering of "Sunday Ticket." Launched in 1994, "Sunday Ticket" provided a unique option for out-of-market fans eager to watch their home teams. According to the plaintiffs, all residential and commercial subscribers who used the service between 2012 and 2022—totaling nearly 2.5 million customers—were affected by these alleged violations. Plaintiffs had initially aimed to secure $7 billion in damages, a figure the court ultimately reduced.
In response to the ruling, the NFL expressed disappointment with the verdict. "We are disappointed with the jury's verdict today in the NFL Sunday Ticket class action lawsuit. We continue to believe that our media distribution strategy...is by far the most fan-friendly distribution model in all of sports and entertainment. We will certainly contest this decision as we believe that the class action claims in this case are baseless and without merit," read the league's statement.
The ruling has stirred a mix of reactions. Amanda Bonn, representing the plaintiffs, criticized the arrangement agreed upon by NFL, Fox, and DirecTV, saying, "NFL, Fox, and DirecTV agreed to make an expensive toll road that very few people would be able to afford." She added, "Every single competitor in this scheme benefited."
Conversely, defense attorney Beth Wilkinson argued the case is fundamentally about choice. "The case is about choice. This is a valuable, premium product. Think about all the choices available to fans. We want as many people as possible to watch the free broadcasts," Wilkinson stated, emphasizing the variety of viewing options available to consumers.
Steve Bornstein, a senior figure within the NFL, reiterated the league’s long-standing strategy regarding "Sunday Ticket." "The NFL always wanted 'Sunday Ticket' to be an additional package. That is how it was designed since its inception," he commented.
Pending an appeal to the 9th Circuit, the decision opens the door to further scrutiny over exclusive sports broadcasting packages. With DirecTV holding the "Sunday Ticket" rights from 1994 through 2022 and the rights recently transferred to YouTube TV, the landscape of sports media distribution appears poised for significant change.
This lawsuit isn't the first high-profile legal battle for the NFL in recent years. In 2021, the league settled for $790 million with the city of St. Louis and several other entities over the relocation of the Rams. As the league braces for a potential appeal, a hearing for post-trial motions is scheduled for July 31. These motions include the possibility of overturning the verdict altogether.
This recent development signifies more than just a financial setback for the NFL; it serves as a bellwether for the evolving dynamics of sports broadcasting and consumer rights. As the situation unfolds, the industry will undoubtedly be watching closely, awaiting the reverberations from this landmark legal decision.