Roger Goodell (Photo by Ethan Miller/Getty Images)
The NFL is facing a lawsuit that has exposed it for turning down multiple opportunities to make ‘Sunday Ticket’ more affordable and accessible to fans.
The league is currently fighting a suit that, if it loses, could result in a payout of up to $21 billion.
According to Courthouse News Service, the suit states that “exclusive packaging of teams’ out-of-market rights in NFL Sunday Ticket violates U.S. antitrust law and creates artificially high prices.”
As we know, streaming giants YouTube secured the rights for ‘Sunday Ticket’ and ‘RedZone’ before the start of last season following the expiration of DirecTV’s longstanding contract.
YouTube was just one among several companies vying to get the service.
Robert Kraft, the owner of the New England Patriots, confirmed in court that the NFL was against a non-exclusive ‘Sunday Ticket’ deal because a low-price bundle would decrease the value of TV rights deals. His argument that FOX and CBS would not want to pay what they currently do for NFL games has merit.
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There’s more, though.
The NFL Wanted To Keep ‘Sunday Ticket’ As A “Premium Offering”
Apple and ESPN made offers that would have seen the subscription price drop significantly, with Apple pointing out that it could bring 15 million to 20 million new subscribers.
“We’re not looking to get lots of people,” Kraft said in his deposition. “We want to keep it as a premium offering.”
An email shown in court revealed that ESPN made a proposal to the league that would have seen ‘Sunday Ticket’ offered to fans at just $70 a season with the option of buying a one-team package.
The league rejected the proposal, opting to go with YouTube, which charges $349 a season on top of the YouTube TV streaming service.
REPORT: NFL Facing A $6 Billion Class Action Lawsuit Over ‘Sunday Ticket’ Prices
Sunday Ticket is set to move from DirecTV to YouTube TV, but there are still some issues that are going on in the legal world.
DirecTV had rights until the end of the 2022 season.
Via the report:
“The case will have two plaintiffs classes — individual “Sunday Ticket” residential subscribers and commercial establishments.
There are reportedly at least 2.4 million members in the residential class.
The commercial class has around 48,000 members.
Lawyers for the NFL and its teams claim the plaintiffs’ lawyers failed to meet the legal requirements needed to form classes.
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“We are reviewing the judge’s order,” an NFL spokesperson said. “We continue to believe that the plaintiffs’ claims have no merit and will vigorously defend our position in this matter.”
The plaintiffs seek not only monetary compensation for what they say are “overcharges” but also a court-ordered injunction that would restrain the NFL from continuing its so-called anti-competitive conduct.
The expansion of the case to a class action means if the league loses, it could be forced to pay a massive bill that would total $6.1 billion. Because of that, it could motivate the league to seek a settlement.
Back in December, the NFL announced Google’s YouTube would be the future home of its “Sunday Ticket” package of out-of-market games beginning next season.
“Sunday Ticket” will be available through YouTube TV, a digital bundle, and a la carte through YouTube’s Primetime Channels. Pricing has yet to be determined.
