NFL Found Guilty of Antitrust Violation, Ordered to Pay Over $4.7 Billion in Damages

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ICARO Media Group
Politics
27/06/2024 22h03

7 Billion in Damages

In a landmark ruling, a jury in U.S. District Court has found the NFL guilty of violating antitrust laws by distributing out-of-market Sunday afternoon games on a premium subscription service. The verdict came with a hefty price tag, as the league has been ordered to pay over $4.7 billion in damages.

The jury's decision includes a payment of $4.7 billion in damages to the residential class and an additional $96 million in damages to the commercial class. However, the NFL has already announced its plans to appeal the verdict, expressing disappointment in the jury's decision.

The league released a statement defending its media distribution strategy, which they claim is the most fan-friendly model in all of sports and entertainment. They argue that their strategy includes airing all NFL games on free over-the-air television in the markets of the participating teams, as well as national distribution of popular games, supplemented by options like RedZone, Sunday Ticket, and NFL+.

The NFL plans to contest the decision, believing that the class action claims are baseless and lack merit. The league expressed gratitude towards the jury for their time and service, as well as the guidance and oversight from Judge Philip Gutierrez throughout the trial.

Post-trial motions are set to be heard on July 31, with one motion aiming to set aside the jury's verdict. If the verdict is not set aside, the NFL intends to appeal to the Ninth Circuit Court. As of now, the league has already received the order to pay the substantial damages.

The class action lawsuit involved 2.4 million residential subscribers and 48,000 businesses who paid for the package of out-of-market games between the 2011 and 2022 seasons on DirecTV. The lawsuit alleged that the NFL engaged in antitrust violations by selling their Sunday games package at an inflated price. Subscribers also claimed that the league stifled competition by exclusively offering "Sunday Ticket" on a satellite provider.

Plaintiffs attorney Bill Carmody highlighted the significance of the case, stating that it goes beyond football and encompasses issues of justice. He emphasized the need to hold the 32 team owners accountable, reminding them that even they cannot ignore antitrust laws or collude to overcharge consumers.

The NFL had been offering "Sunday Ticket" through DirecTV since 1994, up until the 2022 season. Starting in the 2023 season, the league entered a seven-year deal with Google's YouTube TV. This transition from DirecTV to YouTube TV raises additional questions regarding future distribution and any potential implications for the ongoing lawsuit.

The lawsuit was originally filed in 2015 by the Mucky Duck sports bar in San Francisco, but it was dismissed in 2017. The 9th U.S. Circuit Court of Appeals, which has jurisdiction over California and eight other states, reinstated the case two years later. Last year, Judge Gutierrez ruled that the case could proceed as a class action.

As this legal battle unfolds, the NFL faces a significant financial blow and the potential need to reassess their media distribution strategy. Meanwhile, consumers and businesses eagerly await the resolution of this case, hoping for a fair resolution that ensures competition and affordability in accessing out-of-market NFL games.

(Note: This article is generated using provided information and does not reflect the actual occurrence of events

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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