Goodell and Jones to Testify in Lawsuit That Could Cost NFL $21 Billion

Millions of die-hard NFL fans who live outside their team’s television market have had to make a choice between paying for hundreds of unwanted games or going without watching their favorite team play on Sunday.

That frustration is exactly what’s fueling a class-action lawsuit against the NFL, which has more than $20 billion on the line.

The league accustomed to touchdowns, might be facing a major fumble if they lose this case.

It’s something fans will want to keep a close eye on because this isn’t just a courtroom clash – it could impact how you watch your favorite team next season.

Previously held by DirecTV, “Sunday Ticket” has been marketed as the NFL’s way of allowing fans to watch out-of-market games throughout their season.

The service has always had one all-encompassing package that allows you to watch all the out-of-market games for every team.

For many faithful fans, that meant paying for games they were never going to watch.

The Allegations Brought Forward by the Prosecution

The class-action lawsuit includes over 2.4 million people and an additional 48,000 businesses

Back in 2015, a San Francisco sports bar called “Mucky Duck” originally filed the lawsuit.

As with most lawsuits, especially involving the NFL, the case took a long and windy road through multiple courtrooms receiving multiple verdicts until February of 2023 when it was finally given the first real “green light”.

The class-action lawsuit isn’t just about a few disgruntled fans. It represents over 2.4 million individual subscribers – passionate NFL fans who are the driving force of the league.

Additionally, the suit includes over 48,000 businesses, encompassing sports bars and restaurants that cater to football fans.

The potential impact for the NFL is a major piece of all this, with the lawsuit seeking $7 billion in damages. However, since this is an antitrust case, that number could be tripled, putting the potential financial liability for the NFL at a staggering $21 billion.

Antitrust Exemption: A Shield or a Loophole?

The NFL argues its Sunday Ticket deal falls under a historic antitrust exemption

The Sports Broadcasting Act of 1961 provided professional sports leagues like the NFL an antitrust exemption that allowed them to negotiate broadcast rights for all their teams collectively.

Its intent was to make for easier and more balanced revenue sharing between all the teams. The NFL is arguing that Sunday Ticket falls under the same umbrella as their other broadcast deals, just with a more unique structure.

On the other hand, the lawsuit challenging Sunday Ticket argues this exemption is a shield being used as a loophole.

They point out that “Sunday Ticket” operates as a separate product with its own pricing structure, doesn’t involve local TV stations (which is a core element protected by the exemption), and limits fans’ ability to watch their teams without paying for all 32.

The lawsuit even goes as far as to mention other major leagues like the MLB and NBA now allow games to be purchased on a team-by-team basis.

The NFL will likely have a hard time winning this case if it gets decided that the exemption doesn’t cover “Sunday Ticket”.

According to Joe Reed of the Associated Press, a 2020 term sheet from Fox Sports, shown as evidence in the case, revealed that the broadcast partner was “demanding the NFL ensure ‘Sunday Ticket’ would be priced above $293.96 per season.”

To further that point, Pro Football Talk’s Mike Florio went onto The Pat McAfee Show on Monday and said:

The Goodell and Jones Factor

What will Roger Goodell and Jerry Jones’ testimony provide to the case?

This isn’t Roger Goodell’s first time in court to defend the NFL; but in this scenario, there’s a chance he could do more harm than good.

As Florio pointed out, Goodell’s past courtroom demeanor raises concerns. His combative style during a deposition related to concussion settlements suggests a potential for “swordplay” with opposing lawyers, which might not play well with the judge or jury.

Jerry Jones was undoubtedly heavily involved in the Sunday Ticket negotiations as the owner of the most valuable franchise in North American sports, so it’s no surprise he was called as a witness.

Jones, known for his outspoken personality, has a unique opportunity to shed light on other owners’ perspectives regarding Sunday Ticket’s structure and potential benefits or drawbacks.

Ultimately, both Goodell and Jones hold valuable insights and their statements could significantly impact the court’s decision on the antitrust claims.

A Pivotal Moment for Fans

The Sunday Ticket lawsuit could change the future of NFL viewership.

The outcome of the Sunday Ticket lawsuit hinges on the court’s interpretation of the NFL’s antitrust exemption and the testimonies of Goodell and Jones.

A fan victory could reshape how out-of-market games are watched, while a win for the NFL likely means business as usual.

As we await a verdict, this case has the potential to be a turning point, impacting not just Sunday Ticket or NFL viewership but could have ripple effects on other sports as well.

Source: NBC Sports

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