NFL
What is the NFL Sunday Ticket trial? Who are the parties involved?
The National Football League is on trial, and the stakes are rising. Key figures are set to testify this week on the out-of-market game package.
NFL commissioner Roger Goodell began his testimony on Monday in the Los Angeles–based trial, with Cowboys owner Jerry Jones scheduled to follow. But beyond these presumptuous names, the main disputes on both sides of the NFL Sunday ticket are now being unconcealed in court, and we do not know what effect it can produce in the future. The expectations are distinctively polarized.
What’s behind the NFL Sunday Ticket case?
Jury selection began Wednesday in a decade-long class-action antitrust case involving over 2.4 million residential and 48,000 commercial NFL Sunday Ticket subscribers. They are seeking up to $7 billion in damages, which could be tripled under federal rules, potentially resulting in a $21 billion bill for the NFL.
The case highlights the NFL’s unique media rights management. While other leagues offer team-specific out-of-market game packages, the NFL does not. The residential portion of NFL Sunday Ticket has moved to YouTube, but the streamer is not involved in the lawsuit. Claims against DirecTV are on hold pending arbitration.
The agreement with YouTube is estimated to be worth $14 billion over seven years. Therefore, if the plaintiffs received a consequential award, it could nullify the YouTube deal’s economic value.
The parties involved
Plaintiffs argue that the NFL’s practice of bundling out-of-market rights violates antitrust law and increases consumer prices. Testimony has shown that ESPN suggested reducing the usual $349 cost of NFL Sunday Ticket to just $70 for the 2023 season, which would likely have led to a surge in subscriptions. If the plaintiffs succeed, NFL teams could negotiate individual and market-specific out-of-market rights deals, allowing consumers to purchase individual games or team-specific packages. On the other hand, the league is likely to present NFL Sunday Ticket as a high-level product that increases consumers’ access to games.
The case could also lead to prominent figures such as NFL commissioner Roger Goodell, Cowboys owner Jerry Jones, Patriots owner Robert Kraft, and former CBS Sports chairman Sean McManus being called to testify, providing a rare glimpse into the inner workings of how the league negotiates major business contracts like this one. The NFL is in a unique situation as the judge is in charge, and the league’s aggressive tactics may backfire. Industry sources suggest that the NFL’s decision to contest the case rather than settle is not solely about its confidence in its position but also about avoiding further class action challenges.