NFL Faces Multibillion-Dollar Antitrust Lawsuit Over Sunday Ticket Package

The NFL is currently facing a significant legal battle that could change the landscape of sports broadcasting. A class-action lawsuit, initiated nine years ago, accuses the league and DirecTV of maintaining an illegal monopoly on the out-of-market Sunday Ticket broadcast package. The trial began in Los Angeles this week and could have far-reaching implications for how football fans watch games and how television rights deals are structured in professional sports.

At the heart of the case is the NFL’s Sunday Ticket package, which allows fans to watch games that are not broadcast on their local CBS or Fox stations. Subscribers claim that this setup forces them to pay for a bundle of out-of-market games, even if they are only interested in one team. They argue that the NFL and DirecTV conspired to keep prices high by limiting the availability of these games to the Sunday Ticket package.

The plaintiffs seek a court order to end what they describe as “anticompetitive” agreements and are demanding changes to the NFL’s broadcast policies. They want teams to distribute games nationwide on cable, satellite, or online platforms at lower prices.

The NFL, however, contends that its exclusive TV deals are protected by the Sports Broadcasting Act, which grants an antitrust exemption for the sale of broadcasting rights. DirecTV, which was the home of Sunday Ticket from 1994 until 2022, is not on trial as it successfully moved customer claims against it to arbitration in 2021.

The class-action lawsuit covers more than 2.45 million commercial and residential subscribers from 2012 to 2022 and seeks $7.1 billion in damages. Under federal antitrust laws, these damages could be tripled, potentially making the NFL liable for up to $21 billion if it loses the case.

During the opening statements, the NFL’s attorney, Beth Wilkinson, argued that fans have a choice and that Sunday Ticket is a premium product. “The case is about choice. This is a valuable, premium product,” she told the jury, emphasizing that free broadcasts are available for local games.

On the other hand, Amanda Bonn, an attorney representing Sunday Ticket subscribers, criticized the NFL and its partners for creating a high-cost barrier that benefits them financially at the expense of fans. “NFL, Fox, CBS, and DirecTV agreed to make an expensive toll road that very few people would be able to afford,” she said.

Key figures expected to testify include NFL Commissioner Roger Goodell and Dallas Cowboys owner Jerry Jones. The trial could also reveal financial details about how much YouTube is paying for the current Sunday Ticket rights and the costs networks incur to produce NFL games.

The case has attracted significant attention, with a large crowd of attorneys and media members present in the courtroom. This trial is one of the rare occasions where the NFL’s financial practices are being publicly scrutinized without a prior settlement, unlike previous cases such as the $790 million settlement over the Rams’ relocation to Los Angeles.

This lawsuit challenges the traditional model of sports broadcasting and could lead to a significant shift in how games are distributed and priced. As the trial unfolds, the implications for the NFL, its broadcast partners, and millions of football fans will become clearer.