NFL Ordered to Pay $4.7 Billion in Sunday Ticket Trial Verdict

A federal jury in Los Angeles Thursday found the NFL liable in the Sunday Ticket class action and awarded the plaintiffs more than $4 billion in damages. The NFL can appeal to U.S. District Judge Philip Gutierrez that the damages awards are excessive and unreasonable; the league can also appeal to the U.S. Court of Appeals for the Ninth Circuit and later the U.S. Supreme Court. The ruling could compel major changes to the league’s broadcasting arrangements, which last year accounted for 93 of the year’s 100 most-watched TV broadcasts in the U.S.

While the case is a defeat to the NFL, it’s possible the league won’t need to make any payments or change its broadcasting structure for years—if ever.

Gutierrez, who repeatedly expressed skepticism of the plaintiffs’ case during the trial, will hear post-trial motions on July 31. The NFL will likely see a judgment notwithstanding the verdict, where the judge would be asked to rule that no reasonably jury could have reached the verdict given the evidence presented at trial or that the jury simply misapplied the law. The NFL could also seek “remittitur,” where the league would argue the damages are so excessive it would constitute a miscarriage of justice to maintain the dollar amount. Further, the league could demand that Gutierrez table potential far-reaching changes to the Sunday Ticket structure that might result from the jury verdict.

If Gutierrez does not vacate the jury’s ruling, the NFL will appeal to the Ninth Circuit. As part of the appeal, the league would seek to halt the case pending appeal. That’s a major factor for class member fans who are expecting a check in the mail or fans thinking about whether to renew their subscriptions. The league would argue a stay is appropriate given the massive damages award and given the structural changes that would impact contracts for teams, the league and providers.  A stay would mean the NFL would not pay any damages or need to make any structural changes to the Sunday Ticket package would be stayed until all appeals have been concluded.

The Ninth Circuit’s appeals process is hardly fast. From start to finish, Ninth Circuit appeals often take in the ballpark of a year-and-half to nearly three years. The NFL could also petition the U.S. Supreme Court after the Ninth Circuit appeal plays out, which could extend the timeline into the late 2020s. As still another possibility, the NFL and the plaintiffs could reach a settlement before an appeal is heard where the league pays less and is required to make fewer changes but the plaintiffs—and their attorneys who will get a sizable cut of the proceeds—gain certainty of payment.

The class action is on behalf of more than 2.4 million residential subscribers and more than 48,000 restaurants, bars and other commercial establishments that purchased Sunday Ticket. According to journalist and trial observer Meghann Cuniff, the residential class has been awarded $4.7 billion, while the commercial class was awarded another $96 million. The plaintiffs insist NFL teams pooling their broadcasts through the Sunday Ticket, which is available through YouTube TV for $349/year (or less with discounts), violated antitrust law. 

The NFL disputed the finding. “We are disappointed with the jury’s verdict today in the NFL Sunday Ticket class action lawsuit,” the league said in a statement. “We will certainly contest this decision as we believe that the class action claims in this case are baseless and without merit. We thank the jury for their time and service and for the guidance and oversight from Judge Gutierrez throughout the trial.”

Unlike teams in other major pro leagues, NFL teams provide local fans the chance to watch games on TV for free. However, out-of-town fans need to buy the Sunday Ticket. If NFL teams compete with one another in broadcasting deals, some teams might strike deals to broadcast games in out-of-town markets and perhaps make those games available to watch for free or at least for less than the cost of the Sunday Ticket. 

The NFL raised several counterarguments, but none persuaded the jurors. One argument concerned the Sports Broadcasting Act (SBA), which exempts professional football, basketball, baseball and hockey leagues from antitrust scrutiny when they negotiate national TV deals for games watched freely and over-the air. The SBA doesn’t exempt the subscription-based Sunday Ticket from antitrust scrutiny, but the league maintained the Sunday Ticket is part of a broader TV arrangement that includes games broadcast locally free and over-the-air. 

The NFL also warned that if teams were compelled to compete in the licensing of out-of-town broadcasts, it would diminish the number of televised games available to fans. While the Sunday Ticket carries a cost, it ensures that fans can watch any game on TV regardless of their location in the U.S. If out-of-town fans were instead reliant on their favorite team finding a broadcast partner, some could lose TV access to certain games. 

In addition to appealing, the NFL will need to consider new broadcasting arrangements that feature teams competing in the sale of broadcasts. The league has maintained that consumers will be worse off without the Sunday Ticket but has economic incentives to ensure the NFL continues its broadcasting dominance—even if that means exploring new ways of teams televising games to out-of-town fans.

(This story has been updated throughout with details of the ruling and appeals process.)