W.G. Brady
What ‘Sunday Ticket’ Lawsuit Could Cost Detroit Lions
The NFL is facing significant legal challenges over its “Sunday Ticket” service, with serious implications for the league’s financial health and its member teams, including our Detroit Lions. A jury recently found that the NFL violated antitrust laws by limiting “Sunday Ticket” to DirecTV at high prices.
According to the verdict, the strategy restricted subscriber numbers and protected local broadcast ratings for CBS and Fox. The NFL, accused of using this model to increase its wealth, is now liable for $4.7 billion to the residential class and $96 million to the commercial class. Importantly, under antitrust laws, this amount must be tripled, bringing the total to $14.39 billion.
“Justice was done. The verdict upholds protection for the consumers in our class. It was a great day for consumers,” plaintiffs attorney Bill Carmody said.
What Will it Cost The Detroit Lions?
This financial blow implies that each of the 32 NFL franchises will have to cover $$449.6 million, nearly $200 million more than this year’s salary cap per team ($255.4 million).
NFL’s Response and Appeal
“We are disappointed with the jury’s verdict today in the NFL Sunday Ticket class action lawsuit. We continue to believe that our media distribution strategy, which features all NFL games broadcast on free over-the-air television in the markets of the participating teams and national distribution of our most popular games, supplemented by many additional choices including RedZone, Sunday Ticket and NFL+, is by far the most fan friendly distribution model in all of sports and entertainment,” the league said.
“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 [Philip] Gutierrez throughout the trial.”
The ongoing legal battle over the “Sunday Ticket” service not only threatens the NFL’s financial stability but also raises questions about the future of its media distribution strategies and their impact on fans and local broadcasters.
