If you are an NFL fan and subscribed to Direct TV’s “NFL Sunday Ticket” you stand to receive a significant award from the recent jury verdict in the antitrust class action lawsuit against the NFL.

The lawsuit alleged that the NFL and DirectTV created an illegal monopoly over the broadcast of live NFL games. The plaintiffs argued that this led to limited options and inflated prices for consumers. 

In a three-week trial in Los Angeles in U.S. District Court, the jury determined that the National Football League broke antitrust laws by selling “Sunday Ticket” only on one distributor at an inflated price.

There were ten days of testimony, and the NFL brought in Commissioner Roger Goodell and Dallas Cowboys owner Jerry Jones to testify for the defense. After five hours of deliberation the jury found the NFL guilty. The jury awarded $4.7 billion to residential subscribers and $96 million to businesses. Under federal antitrust laws damages are tripled, so the NFL could end up being liable for $14.39 billion unless they reach a settlement, or the judgement is reduced.

The damages will be spread equally to the NFL teams; so each team could owe $441 million.

The class action applied to more than 2.4 million residential subscribers and 48,000 businesses (bars and restaurants) who purchased “NFL Sunday Ticket” from June 17, 2011 to February 7, 2023. The estimated award to residential subscribers is between $2,000 and $5,800. The NFL has said that they will appeal, so it may be several years before subscribers receive any award.

There is currently a stay on the verdict pending appeals. The stay also means that the NFL is not required to make any changes in the current subscription model until all appeals are exhausted.

Major League Baseball and the National Hockey League negotiated settlements nine years ago for class actions involving similar broadcasting issues, so it is very possible that the NFL will also try and settle this case.

If you were a subscriber to NFL Sunday Ticket, make a mental note to watch for further news about his case and the settlement that you may receive. Unlike most class action lawsuits, your award is likely to be significant.

Ralph Broadwater, M.D., CFP®

© 2024 The Arkansas Financial Group, Inc., All rights reserved.

The Arkansas Financial Group, Inc. is a Fee-Only Financial Planning Firm located in Little Rock, AR serving clients in Arkansas and throughout the country.

Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by The Arkansas Financial Group, Inc. [“AFG]), or any non-investment related content, made reference to directly or indirectly in this commentary will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this commentary serves as the receipt of, or as a substitute for, personalized investment advice from AFG. AFG is neither a law firm, nor a certified public accounting firm, and no portion of the commentary content should be construed as legal or accounting advice. A copy of the AFG’s current written disclosure Brochure discussing our advisory services and fees continues to remain available upon request or at www.arfinancial.com.

Please Remember: If you are a AFG client, please contact AFG, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently. Please Also Remember to advise us if you have not been receiving account statements (at least quarterly) from the account custodian.