In a stunning ruling, a California federal jury has ordered the National Football League to pay over $4.7 billion in class-action damages for allegedly overcharging subscribers of its popular “Sunday Ticket” telecasts. Jurors in Los Angeles found that the NFL collaborated with its member teams to artificially inflate the prices for millions of residential and commercial subscribers. The jury awarded $4.6 billion to residential subscribers and $96 million to commercial subscribers, such as bars and restaurants.
If a judge decides to award triple damages under US antitrust law, the total judgment could exceed $14 billion. The NFL expressed disappointment with the verdict, stating, “We will certainly contest this decision as we believe that the class action claims in this case are baseless and without merit.” Despite the verdict, the league had previously requested the court to rule in their favor, which could potentially nullify the jury’s decision.
On the other hand, attorneys representing the plaintiffs welcomed the outcome, declaring, “We are pleased with today’s result on behalf of the classes we represent.” This landmark trial, which began on June 5, marked the conclusion of more than a decade of legal battles over the pricing of “Sunday Ticket” broadcasts. Subscribers accused the NFL of maintaining a stranglehold over distribution agreements with broadcast partners, which allowed for artificially high pricing by DirecTV, the exclusive distributor of “Sunday Ticket” at the time.
Although DirecTV and Google (the current distributor) were not involved in the trial, residential subscriptions for “Sunday Ticket” now reach as high as $449. The plaintiffs alleged that the prices were inflated to limit subscriptions and protect distribution rights fees paid by CBS and Fox for local game broadcasts. The NFL, however, defended its practices, arguing that “Sunday Ticket” offers a premium viewing experience that expands access to games already available on local networks for free.
The plaintiffs in this case consist of DirecTV subscribers who purchased “NFL Sunday Ticket” between June 2011 and February 2023, totaling at least 2.4 million residential customers and 48,000 commercial subscribers. DirecTV is a subsidiary of AT&T, while Google is owned by Alphabet.
