Eagles fans living outside the Philadelphia area should be paying attention to the trial in a $21 billion legal battle happening in a Los Angeles courtroom.
The NFL is defending itself in a federal class-action lawsuit filed by “Sunday Ticket” subscribers — both fans at home and owners of bars and restaurants — that claims the league violated antitrust law by forcing consumers to pay top dollar to watch out-of-town games.
The lawsuit alleges the NFL conspired with its television partners to keep the price of its “Sunday Ticket” package high to prevent it from impacting viewership numbers, which the networks use to sell ads. The suit also contends the league gave the package to DirecTV, a satellite provider that required the installation of a dish, to further limit subscriptions. YouTube TV acquired the rights to “Sunday Ticket” last season.
U.S. District Judge Philip S. Gutierrez is presiding over the trial, which began June 6 in Los Angeles and is expected to conclude by the end of the month.
Among the evidence lawyers for the subscribers have presented to the jury so far is a 2020 term sheet revealing Fox Sports wanted “Sunday Ticket” priced above $293 per season to limit new subscribers. The NFL also rejected a 2022 bid by ESPN to stream “Sunday Ticket” on ESPN+ for $70 per season while offering a team-by-team product, according to court documents.
The NFL has countered that “Sunday Ticket” is a premium product that the league has a right to sell under the antitrust exemption that allows it to cut deals and set terms with other network partners.
“We have been clear throughout that it is a premium product. Not just on pricing but quality. Fans make that choice whether they wanted it or not,” NFL commissioner Roger Goodell testified this week, defending the league as “very pro-consumer” for offering many games for free on broadcast television.
Goodell also defended the decision to award “Sunday Ticket” to DirectTV from 1994 to 2022, claiming streaming wasn’t ready to handle the demand of the package and no single cable company had a similar national distribution.
“We sing it from the mountaintops, we want to reach the broadest possible audience on free television,” Goodell said. “Our partners have found ways to build our fan base.”
Here’s what Eagles fans should know.
What could change for Eagles fans?
If you live in the Philadelphia area, nothing. All Eagles games — even those that stream exclusively on Amazon’s Prime Video or air on ESPN — also air on broadcast television within the Philadelphia market, and are free to stream with a digital antenna.
But if you’re an Eagles fan who lives outside the region, and the NFL loses its antitrust lawsuit, it’s possible you could end up with more options to watch Birds games beyond “Sunday Ticket” or illegally streaming them.
One potential scenario could involve the Eagles setting up a streaming package that lets you purchase and watch out-of-town games. The NFL could also free up YouTube TV to come up with more creative and less-expensive packages. But it’s unclear what specifically would change if the NFL ultimately loses.
“There could be some injunctive relief going forward that would somehow compel the NFL to offer ‘Sunday Ticket’ at a competitive price,” Jacobsen said.
What about bars and restaurants that subscribe to ‘Sunday Ticket’?
Other than a lucrative payout, it remains unclear what options could emerge for bar and restaurant owners if the NFL loses the antitrust case.
Having teams sell their own TV rights might be less expensive for the average fan, but it could force business owners into a scenario where they’re subscribing to 31 services to show games from across the league, rather than one premium product.
“If the plaintiffs win, and they get their subscriptions refunded, they’re still going to have to pay moving forward,” said John Allgood, who teaches sports business management at the University of Delaware. “It’s not like it’s going to be free moving forward.”
Testifying this week, Dallas Cowboys owner Jerry Jones admitted selling out-of-town packages directly could be lucrative for his team, but doesn’t think it would be in the best interest of fans, business owners, or the league.
“I am convinced I would make a lot more money than the Bengals,” Jones said. “I’m completely against each team doing TV deals. It is flawed.”
What are the chances the NFL loses the lawsuit?
In a word: unclear.
It’s a gamble for the NFL to end up in a courtroom in the first place. The NFL settled a 2013 case involving concussions for $765 million and a 2021 case involving the Rams’ relocation from St. Louis to Los Angeles for $280 million, but could be on the hook for $21 billion if the jury’s verdict is against the league.
“I actually think the NFL has a great case. They didn’t need to settle,” Allgood said. “I think it’s the fair market. I don’t think the NFL is excluding anyone from bidding. I think the bars and restaurants don’t like paying the fee.”
Others aren’t quite as convinced the NFL will prevail.
“Obviously, the NFL thinks it has a strong position, but I think it’s a toss-up in terms of what the result is going to be in this case.” said Ken Jacobsen, who leads Temple University’s sports law program. “Anyone that says they know what the outcome is going to be are just not being intellectually honest.”
If the NFL loses the lawsuit, how long will it take before anything changes?
Regardless who prevails during the trial, Jacobsen said the stakes are so high it’s almost a given the loser will appeal the ruling.
That would send the case to the San Francisco-based U.S. Court of Appeals for the Ninth Circuit, which in 2019 ruled against the NFL’s argument that its “Sunday Ticket” deal is covered by its antitrust exemption. From there, the case could end up in the Supreme Court, though the court has previously declined to intervene on the NFL’s behalf.
“No matter what happens, this is going to be a long road,” Jacobsen said. “I think we’re two years out or longer before we’re going to get any definitive ruling.”
The Associated Press contributed to this report.