NFL's Future After $4.7B 'Sunday Ticket' Trial Loss Explained

The recent $4.7 billion verdict against the National Football League (NFL) over its "Sunday Ticket" broadcast package could potentially reshape how games are distributed, if it holds up in court. This colossal judgment, delivered on June 27, could be tripled under antitrust law to more than $14 billion. However, the NFL has stated it will fight to overturn this decision as the decade-long legal battle enters its next phase.

For those unfamiliar with "Sunday Ticket,"  it is a service that provides access to out-of-market NFL games, letting fans watch their team when a matchup isn't broadcast locally on CBS or Fox. The plaintiffs in this case argued that the league and its teams conspired to keep these costs uncompetitively high so they could maximize profits while preserving local broadcast deals.

During the trial held at Los Angeles federal court, where about $7 billion in damages were sought by plaintiffs, the NFL staunchly denied violating U.S. antitrust laws over a three-week period of intense deliberation. They defended their product as premium, with an appropriate price tag attached.

The league further contended that pooling telecast rights promotes innovation and incentivizes high-quality broadcasts—arguments supported by testimonies from key witnesses, including none other than NFL Commissioner Roger Goodell himself.

However, after just two days of consideration, the jury awarded $4.6 billion to a class consisting of 2.4 million residential subscribers and another $96 million to approximately 48 thousand commercial subscribers, such as bars and restaurants, who purchased "Sunday Ticket" between 2011 and 2023 via DirecTV distribution services.

It's important to note that neither DirecTV nor Alphabet (whose YouTube TV currently holds Sunday Ticket rights) were put on trial during this process.

As far as potential appeals go, yes, there is indeed scope for overturning this verdict since the NFL has already appealed before U.S. District Judge Philip Gutierrez, arguing a lack of supporting evidence for the plaintiffs' antitrust claims. Should Judge Gutierrez side with the NFL in his ruling, expected within a few weeks, it would nullify the verdict.

However, if the court rules in favor of plaintiffs, then any appeal by the NFL will be decided by the San Francisco-based 9th U.S. Circuit Court of Appeals, though this won't likely happen until next year at the earliest. There's also still a possibility for both sides to reach a settlement before that point.

As per immediate implications for subscribers post-verdict, there aren't any as such. Lawyers representing plaintiffs could request the court issue an order aimed at promoting competition and reducing prices for Sunday Ticket service.

The verdict has brought forth suggestions from the plaintiff camp, like allowing individual teams to negotiate their own broadcast deals considering the high demand for professional football programming.

If this verdict is not overturned, class members (subscribers) stand a chance to receive checks via mail reflecting their share of the award, although legal fees and other related expenses might reduce the overall payout amount.