Sports Business Journal’s Post

🏈 𝐍𝐅𝐋 𝐒𝐞𝐞𝐤𝐬 𝐭𝐨 𝐔𝐧𝐝𝐨 $𝟒.𝟕 𝐁𝐢𝐥𝐥𝐢𝐨𝐧 𝐕𝐞𝐫𝐝𝐢𝐜𝐭 𝐢𝐧 𝐭𝐡𝐞 𝐃𝐢𝐫𝐞𝐜𝐓𝐕 𝐒𝐮𝐧𝐝𝐚𝐲 𝐓𝐢𝐜𝐤𝐞𝐭 𝐂𝐚𝐬𝐞 💰 The NFL is asking a California Federal Judge to undo the $4.7 billion jury verdict in what is known as the “Sunday Ticket Case.” 𝐖𝐡𝐚𝐭 𝐇𝐚𝐩𝐩𝐞𝐧𝐞𝐝 𝐈𝐧 𝐓𝐡𝐞 𝐂𝐚𝐬𝐞? Plaintiffs allege that between 2011 and 2023, the NFL, its teams, and DirecTV violated antitrust laws by artificially inflating the price of the Sunday Ticket, thus restraining trade and maintaining an illegal monopoly. Plaintiffs argued that the NFL's practice of pooling television rights for out-of-market games and alleged side agreements with DirecTV to keep prices high were anticompetitive. 𝐓𝐡𝐞 𝐍𝐅𝐋’𝐬 𝐌𝐨𝐭𝐢𝐨𝐧 The NFL has filed what is called a “Renewed Motion for Judgment as a Matter of Law or for a New Trial.” A copy of the Motion is attached. The NFL is trying to undo the jury’s verdict. Below is a summary of the main arguments. 1️⃣ 𝐉𝐮𝐫𝐲'𝐬 𝐃𝐚𝐦𝐚𝐠𝐞𝐬 𝐂𝐚𝐥𝐜𝐮𝐥𝐚𝐭𝐢𝐨𝐧: The NFL claims the jury improperly calculated damages, using a methodology not supported by any damages models presented by either party. They claim the jury effectively created their own damages model, which is deemed irrational and unsupported by the evidence presented at trial. 2️⃣ 𝐅𝐚𝐢𝐥𝐮𝐫𝐞 𝐨𝐟 𝐏𝐥𝐚𝐢𝐧𝐭𝐢𝐟𝐟𝐬' 𝐃𝐚𝐦𝐚𝐠𝐞𝐬 𝐌𝐨𝐝𝐞𝐥𝐬: According to the NFL, the plaintiffs failed to present viable class-wide damages theories that the jury could use to determine appropriate damages. The damages figures awarded ($96.9 million for the commercial class and $4.6 billion for the residential class) were allegedly not based on any proposed amounts from the plaintiffs during the trial. 3️⃣ 𝐋𝐞𝐠𝐚𝐥 𝐄𝐫𝐫𝐨𝐫𝐬 𝐚𝐧𝐝 𝐉𝐮𝐫𝐲 𝐈𝐧𝐬𝐭𝐫𝐮𝐜𝐭𝐢𝐨𝐧𝐬: The NFL contends that there were errors in how the court instructed the jury, particularly concerning the rule of reason and considerations of competitive harm versus procompetitive benefits. They argue that these errors may have influenced the jury's decision. 4️⃣ 𝐀𝐥𝐥𝐞𝐠𝐚𝐭𝐢𝐨𝐧𝐬 𝐨𝐟 𝐉𝐮𝐫𝐨𝐫 𝐁𝐢𝐚𝐬: The NFL raises concerns about potential bias from the jury foreperson, who disclosed during voir dire that they paid for a relative's Sunday Ticket through YouTubeTV, which wasn't part of the class period. The NFL argues that this bias should have disqualified the juror and affected the verdict. 𝐖𝐡𝐚𝐭 𝐇𝐚𝐩𝐩𝐞𝐧𝐬 𝐍𝐞𝐱𝐭? As I discussed in an earlier post, If the NFL loses at the District Court level it will almost certainly appeal to the Ninth Circuit Court of Appeals. In so doing, the NFL will ask for a stay of the judgment pending the appeal. To get the stay, the NFL may have to post a bond (that’s not going to be a problem for the NFL) and if a stay is granted it means everything is on hold pending the appeal. Bottom line, there is still a long way to go before the NFL must pay any money (if ever) or alter its broadcasting platform.

A U.S. district court jury ruled that the National Football League (NFL) must pay over $4.7 billion in damages for violating antitrust laws through its distribution of out-of-market Sunday afternoon games in its "Sunday Ticket" subscription service. The verdict includes $4.7 billion to residential subscribers and $96 million to commercial entities. The lawsuit, initially filed in 2015 and reinstated by the 9th U.S. Circuit Court of Appeals, covers 2.4 million residential subscribers and 48,000 businesses who paid for out-of-market games from 2011 to 2022 on DIRECTV. The plaintiffs argued the #NFL inflated prices and restricted competition by offering #SundayTicket solely through satellite providers, forcing fans to purchase unnecessary games. The NFL plans to appeal the verdict, claiming its media distribution strategy benefits fans with free over-the-air broadcasts while offering additional options like #RedZone and NFL . Follow Amanda Newman to stay up to date with technology. https://lnkd.in/eKD6ecq3

Last week (27 June), a jury in the U.S. District Court ruled against the NFL, ordering it to pay over $4.7 billion in damages for violating antitrust laws with its 'Sunday Ticket' package. The ruling impacts 2.4 million residential subscribers and 48,000 businesses, potentially costing the NFL up to $14.39 billion under federal antitrust laws. Key Points: - Antitrust Violations: The NFL's exclusive satellite distribution through DirecTV was found to inflate prices and restrict competition. - Significant Damages: $4.7 billion awarded to residential class, $96 million to commercial class, with potential tripling under antitrust laws. - NFL’s Response: The league plans to appeal the decision, maintaining its media distribution strategy is fan-friendly and lawful. - Broader Implications: Other professional sports leagues are monitoring the case due to similar out-of-market package offerings. - Impact on Teams: Potential financial burden of $449.6 million per team if damages are upheld. The lawsuit, originally filed in 2015 by a sports bar in San Francisco, has been a long legal journey, culminating in this significant ruling. The NFL now faces the possibility of substantial financial repercussions and potential changes to its 'Sunday Ticket' distribution model. Stay informed and compliant with Global Regulatory Insights! #RegulatoryUpdates #Compliance #LegalNews #Antitrust #SportsLaw #NFL #SundayTicket #CompetitionLaw #GRI

🏈 The National Football League (NFL) made headlines for all of the wrong reasons just before July 4th, when a jury ruled against the league in a class action lawsuit that its NFL Sunday Ticket package violated antitrust law. The NFL sells its out-of-market games as a collective package. The 1961 Sports Broadcasting Act gave all professional leagues, including the NFL, an antitrust exemption to do a league-wide deals and negotiate collectively instead of by team with broadcast partners. In the modern media environment, fans can watch their local teams in market and the national exclusive games (i.e., Sunday Night Football), but they will need to purchase Sunday Ticket to watch those out of market games. The lawsuit alleges that the NFL violated its antitrust exemption by collectively splitting off out-of-market games and creating a standalone product well above market rate with a satellite service (DIRECTV) and now a streaming service (YouTube TV) that are not attainable on linear TV. Through a series of missteps by the NFL and some legitimate questions about the model, the jury ruled in favor of the plaintiffs. The case didn’t get a lot of publicity while it was happening, but the damages number sure did. Initially set at $4.7 billion, the figure ballooned to $14 billion because of the ability to “treble” damages in antitrust cases. This is obviously a monster number, and if you’re reading only the headlines, you’d think that David has dealt a major blow to Goliath. While this is a setback and it is surprising the league did not try to settle along the way, the NFL is going to attempt to get the verdict thrown out in late July and then escalate to higher appeals courts (including the Supreme Court potentially) if it fails. Based upon prior litigation, this would imply they believe they can win. The NFL is likely looking to score a knockout punch here because it wants to protect its “all for one, one for all” business model that has gotten it to where it is today. Losing this suit would likely require a restructuring of the media rights model and have far reaching implications on how the teams interact with each other/do business together. Making a definitive statement entrenches that model and bolsters the NFL's biggest moat. In this week's SBP, we're back to the courtroom! You'll learn: - How the NFL’s media deals operate - What happened in this case and where it goes from here - Why I think the NFL is fighting this so hard 👇 https://lnkd.in/gUADWCAB

Touchdown for Consumers? NFL Sacked by $4.7 Billion Verdict Today, a significant legal decision rocked the National Football League (NFL) as it faces approximately $4.7 billion in damages—an amount that could triple to $14 billion under federal law—due to anticompetitive practices linked to its Sunday Ticket broadcast package. https://lnkd.in/gbeKB-Qg A jury in Los Angeles sided with football fans who argued that the NFL and DirecTV conspired to inflate subscription prices for out-of-market games. This consumer class-action lawsuit culminated in a verdict after a three-week trial, highlighting that viewers were forced to pay for games even when their team wasn’t playing, leading to higher costs. The NFL’s strategy, which was defended by Commissioner Roger Goodell, emphasized that subscription fees were determined by DirecTV alone. However, the plaintiffs argued that this model limited game distribution and led to inflated prices, suggesting that a basic cable distribution could potentially double the average game availability. Despite the NFL's stance on their current model being "the most fan-friendly distribution model in all of sports and entertainment," the jury saw otherwise. Damages were awarded to both commercial subscribers, including sports bars ($96.9 million), and residential customers ($4.61 billion). Antitrust cases like these rarely go to trial due to the potential tripling of damages under U.S. law. The NFL, while planning an appeal, could still see the judge potentially reducing the jury’s verdict. This decision underscores the importance of fair competition and consumer rights. It’s a strong reminder for businesses across all sectors to ensure their practices align with consumer interests and legal standards. Understanding and respecting consumer expectations isn't just good ethics—it's good business. #NFL #ConsumerRights #Antitrust #BusinessStrategy

In a new court filing in the NFL Sunday Ticket federal litigation, the NFL says the league and its 32 teams are a single entity--and thus exempt from antitrust scrutiny--for purposes of telecast licensing and that forcing NFL to change its TV deals would harm fans by sending more games on free TV to paid channels. If "single entity" sounds familiar, that's because it came up in American Needle v. NFL, the U.S. Supreme Court case from 2009. I discuss what all this means in a new Sportico story. #sportslaw #sportsbusiness #antitrust #antitrustlaw #sportsbroadcasting #NFL

A federal jury in Los Angeles Thursday found the NFL liable in the Sunday Ticket class action and awarded the plaintiffs more than $4 billion in damages. However, it’s possible, and likely, that the NFL will not have to pay any money for years and potentially never pay a dime. 🏈What is this case about? Fans of their local NFL team can watch their games for free on local tv. However, to watch an out-of-town team, a fan needs to buy the NFL Sunday Ticket. The case is a class action on behalf of more than 2.4 million residential subscribers and more than 48,000 restaurants, bars and other commercial establishments that purchased Sunday Ticket. The plaintiffs argue that NFL teams pooling their broadcasts through the Sunday Ticket violated antitrust law. Basically, the plaintiffs are saying that if NFL teams competed for broadcasting deals, it would result in competition which may lower the cost for out-of-market games or make them free all together. 🏈🏈 The NFL Will Appeal The NFL can, and likely will, appeal to U.S. District Judge Philip Gutierrez. Specifically, the NFL will likely seek something called a “judgment notwithstanding the verdict.” In short, the NFL will ask the judge to overrule the jury’s verdict arguing that no reasonably jury could have reached the verdict given the evidence presented at trial or that the jury simply misapplied the law. The NFL will also likely ask the judge, in lieu of overruling the verdict, to substantially reduce the damage award. If the NFL loses at the District Court level it will almost certainly appeal to the Ninth Circuit Court of Appeals. In so doing, the NFL will ask for a stay of the judgment pending the appeal. To get the stay, the NFL may have to post a bond (that’s not going to be a problem for the NFL) and if a stay is granted it means everything is on hold pending the appeal. Of course, the parties could always settle, but don’t hold your breath. 🏈🏈🏈 What’s the bottom line? Once again, we have spicey headlines of a massive jury verdict. However, as with most jury verdicts in civil cases, there is a lot more to the story. There is a long road ahead before the NFL pays any money or alters its broadcasting structure. If you are or were an NFL Sunday Ticket subscriber, the check is not in the mail. Stay tuned for more updates. #law #sportslaw

In an effort to try to hide from last nights awful debate - here is some news: A U.S. District Court jury has ruled that the NFL violated antitrust laws, with a $4.7Billion verdict, maybe leading to a potential $14.39 billion in damages! This case revolves around the league's distribution of out-of-market Sunday afternoon games via a premium subscription service. But what does this mean for fans and businesses? Could this reshape how we watch our favorite Sunday games? Will the NFL’s media strategy change drastically? How will this impact other professional sports leagues with similar packages? With the league planning to appeal, the final outcome is still uncertain. Each NFL team might face a hefty $449.6 million bill if damages are upheld. Is this a win for consumers and competition, or a setback for the NFL’s broadcasting model? Share your thoughts below! 👇 #NFL #Antitrust #SundayTicket #SportsLaw #BroadcastingRights #ConsumerRights