The Ninth Circuit Federal Court has overturned an October 2017 ruling that DirecTV’s NFL Sunday Ticket package does not violate federal anti-trust laws. The case will now proceed to a circuit court judge, and if the plaintiffs win, that could mean more choices at a lower price tag for football fans.
Robert Litan of The Athletic reports that the three judges hearing the case voted 2-1 to hear the complaints of residential and commercial DirecTV subscribers. The plaintiffs argue that DirecTV forcing fans to pay for the entire NFL Sunday Ticket package, as opposed to offering an a la carte model that would allow fans to choose individual games or to follow a single team, is in direct violation of anti-trust laws.
In 1961, Congress passed the Sports Broadcast Act. It exempted all professional sports leagues from federal anti-trust laws in negotiating broadcast rights deals. The exemptions of the SBA do not apply to subscription-based cable systems or satellite TV providers. The plaintiffs allege that since the NFL Sunday Ticket package is a product sold to customers, it violates the anti-trust laws.
DirecTV charges nearly $300 for the full season of the NFL Sunday Ticket package for residential customers. The NFL Sunday Ticket Max package costs nearly $400. Commercial customers pay at least $590 for the package.
The plaintiffs in the case are seeking unspecified damages and an order that DirecTV and the NFL offer fans another way to view more than the three games aired on CBS and FOX every Sunday. While no specific dollar figure has been made public, at prices like the ones above, it is clear that a lot of money is at stake for the NFL and DirecTV.
Litan’s article has a full breakdown of the legal precedents both sides are expected to cite in making their arguments. He also makes it clear that the plaintiffs in this case are only DirecTV and the NFL. The lawsuit will have no effect on the broadcast TV deals that the NFL has with its major network partners.