NFL Commissioner Testifies in Sunday Ticket Lawsuit, Defends Broadcast Model
ICARO Media Group
In a federal court, NFL Commissioner Roger Goodell took the stand on Monday to testify in a class action lawsuit related to the league's "Sunday Ticket" package. Goodell reaffirmed that the package is a premium product and defended the NFL's broadcast model.
During cross-examination in a Los Angeles courtroom, Goodell emphasized that the "Sunday Ticket" package is priced and marketed as a premium offering. He acknowledged that some fans may find the package too costly, but maintained that it provides a high-quality viewing experience. The commissioner stated that the decision to subscribe to the package rests with the fans, and their choice reflects its status as a premium product.
Goodell, who has been commissioner since 2006, highlighted that this is his first time testifying in federal court during his tenure. The class action lawsuit, brought forth by 2.4 million residential subscribers and 48,000 businesses, accuses the NFL of violating antitrust laws by selling the "Sunday Ticket" package at inflated prices. The plaintiffs also argue that the offering of the package exclusively through a satellite provider restricts competition.
The NFL, however, maintains its position that selling the "Sunday Ticket" falls within its antitrust exemption for broadcasting. The league argues that the exemption covers both over-the-air broadcasts and pay TV, which includes the satellite provider used for "Sunday Ticket." If the NFL is found liable, the potential damages could amount to $7 billion, but antitrust cases have the possibility of tripling damages, raising the number to $21 billion.
Throughout the trial, exhibits presented by the plaintiffs indicated that major broadcasters like Fox and CBS have expressed concerns about increased competition from a more widely distributed "Sunday Ticket" package, potentially impacting ratings for locally aired games. Goodell explained that the decision to partner with DirecTV for "Sunday Ticket" from 1994 to 2022 was due to its national distribution, as cable companies were too fragmented to provide a viable alternative.
Addressing the NFL's broadcast model, Goodell emphasized the league's commitment to reaching the broadest possible audience on free television. He presented this as a consumer-centric approach, asserting that the availability of local games on free-to-air networks contributes to the high viewership ratings enjoyed by NFL games.
In addition, Goodell mentioned that the decision to sell Thursday night games, which were initially exclusive to the NFL Network from 2006 to 2013, to other networks was driven by the desire to enhance the quality of production. CBS and NBC shared the broadcast rights for Thursday night games from 2014 to 2016, and Fox took over for the following five seasons. Amazon Prime Video secured the rights starting in 2022.
Following Goodell's testimony, Dallas Cowboys owner Jerry Jones, a member of the league's media committee, is expected to appear as a witness in the ongoing trial.
As the trial reaches its third week, the outcome will ultimately determine the future of the "Sunday Ticket" package and potentially have significant financial implications for the NFL.