A class-action lawsuit against the NFL regarding its 'Sunday Ticket' package of out-of-market games is currently underway in federal court in Los Angeles. Subscribers allege that the league violated antitrust laws by selling the package at inflated prices and restricting competition by offering it exclusively through a satellite provider.
The lawsuit, initially filed in 2015 by a sports bar in San Francisco, has evolved to include over 2.4 million residential subscribers and 48,000 businesses that purchased 'Sunday Ticket' between June 2011 and February 2023. The case was reinstated by the 9th Circuit Court of Appeals after being dismissed by a district court judge.
Despite the NFL's assertion of its right to sell 'Sunday Ticket' under broadcasting antitrust exemptions, the plaintiffs argue that the league's practices harm competition. The case has the potential to result in significant damages, with estimates ranging from $7 billion to $21 billion if the NFL is found liable.
The lawsuit sheds light on the negotiations between the NFL and broadcasters like Fox and CBS, who reportedly pushed for premium pricing to protect local ratings. The outcome of this case could have implications beyond the NFL, as other major sports leagues offering out-of-market packages are monitoring the proceedings closely.
If the NFL is held accountable, the league is likely to appeal the decision, prolonging the legal process. The case also raises questions about potential changes to the pricing and distribution of 'Sunday Ticket,' with suggestions for team-specific packages and weekly offerings to provide subscribers with more affordable options.
As the trial continues, the NFL faces uncertainty regarding the outcome of the lawsuit and the potential financial implications. The case represents a rare instance of a high-profile legal battle involving the league's financial practices being brought to court, highlighting the complexities of antitrust regulations in the sports broadcasting industry.
