LOS ANGELES (NEWSnet/AP) — National Football League has been found guilty of breaking antitrust laws in its distribution of out-of-market games on the “Sunday Ticket” premium subscription service.
A jury in a U.S. District Court awarded nearly $4.8 billion in damages to residential and commercial subscribers.
The league broke antitrust laws by selling “Sunday Ticket” only on DirecTV, at an inflated price. By offering the service on only one distributor and at a high price, that limited the subscriber base and satisfied concerns by CBS and Fox about preserving local ratings, while the NFL got money for its broadcast rights.
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Who were the plaintiffs?
The class action applied to more than 2.4 million residential subscribers and 48,000 businesses, mostly bars and restaurants, that purchased “NFL Sunday Ticket” from June 17, 2011, to Feb. 7, 2023.
Summary of damages:
It awards $4.7 billion to residential subscribers and $96 million to businesses. Because damages are under federal antitrust laws, the NFL could be liable for $14.39 billion, unless it reaches a settlement or it is reduced. It would be spread equally among the 32 teams. That means each could pay as much as $449.6 million.
Are there immediate changes?
Changes to “Sunday Ticket” or the ways the NFL carries its Sunday afternoon games would be stayed until appeals conclude. It could consider offering team-by-team or week-by-week packages, along with a reduced cost.
What’s next?
Judge Philip S. Gutierrez Gutierrez is scheduled to hear post-trial motions on July 31. That will include the NFL’s request to have him rule in favor of the league, because the judge determined the plaintiffs did not prove their case.
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