A federal jury issued a verdict on Thursday that orders the National Football League to pay $4.7 billion in damages, finding the league liable in the class action lawsuit surrounding NFL Sunday Ticket. This ruling could lead to changes in the way the NFL broadcasts, although a spokesperson for the league said in a statement that the league plans to appeal the ruling. U.S. District Judge Philip Gutierrez will hear post-trial motions for the case on July 31 and has the ability to forsake the ruling of the jury. Michael Kay, during The Michael Kay Show in afternoon drive on ESPN New York on Thursday, spoke about the ramifications that the ruling could have.
Kay cited reporting from Spotrac explaining that while the dollar amount could draw headlines, which is tripled under federal antitrust law, the news embedded within the decision is that fans could soon be able to purchase single-team streaming packages. Moreover, blackout restrictions may no longer be part of the equation as well, potentially setting a precedent for other professional sports leagues. After 28 years distributing NFL Sunday Ticket, the out-of-market viewing package moved from DirecTV to YouTube/YouTube TV in a deal reported to be worth $2 billion over seven years.
“This is a huge win for the Cowboys, and although Jerry Jones testified in the trial and said he didn’t want this to happen, the Dallas Cowboys, whether you hate them or not, they’re the most popular team in the NFL,” Kay said. “If he sold his Dallas Cowboy games alone, he’s going to make billions of dollars, and it’s going to affect teams like the Cincinnati Bengals where they don’t have nearly the following, so this could upset the entire NFL apple cart right now – this one lawsuit.”
Co-host Peter Rosenberg explained that he would only subscribe to Washington Commanders games and watch the local games. While some people would want every game, partially because of sports betting and gambling, fans may be afforded the option to choose how they want to subscribe. Rosenberg articulated that he could see a package where someone pays for a few teams or a division, but feels that the league was always ripping consumers off on was the inability to purchase games à la carte.
“If I’m a Cowboy fan in New York, I might not buy as many games as say a fan of Cincinnati because if I’m in New York, they’re going to play the Giants twice, they’re going to be on Monday Night Football three times, they’re going to be on Sunday Night Football, they’re going to be on Thanksgiving,” co-host Don La Greca said. “Half the games are available for free.”
Rosenberg believes that the ability to buy individual games would work best for marquee teams other than the Cowboys, including the New York Giants, Minnesota Vikings and San Francisco 49ers. La Greca believes that buying games à la carte would work but that it would put several channels out of business and affect the balance of power in the league. The NFL currently splits its media revenue and distributes it among the 32 franchises.
“But that’s why in a league that’s essentially socialism, that’s why they’re ahead of baseball because baseball’s a regional sport where the Yankees could make the most money and they put them at an advantage over the Rays, but everybody gets the same money TV-wise in the NFL,” Kay said. “If this becomes a thing, then everybody’s not going to get the same money.”
Kay questioned the rationale behind the lawsuit, estimating that the Cowboys could charge $200 just to watch individual games throughout the season. When he asked about the price of NFL Sunday Ticket, he was informed that it was $400 for the year. In reality, YouTube TV currently charges $349 for the annual package of NFL games. Utilizing the $400 figure, however, he stated that it was an “unbelievable deal” for the amount of content the consumer is receiving.
“It’s not like the NFL charges you serious rates,” Kay said. “If it was like thousands of dollars, I get it. $400? What are we suing about? If you get individual teams, you know how much they’re going to charge? They’re going to make it back.”
