NFL Commissioner Roger Goodell testified in federal court on Monday, emphasizing that the league's 'Sunday Ticket' package is a premium product. Goodell defended the league's broadcast model during his nearly four-hour testimony in a Los Angeles courtroom.
Goodell stated that the 'Sunday Ticket' package is priced and valued as a premium offering, allowing fans to choose whether to purchase it based on its quality. The class-action lawsuit, covering millions of subscribers, alleges that the NFL violated antitrust laws by selling the out-of-market games at an inflated price and limiting competition by offering the package exclusively through a satellite provider.
The NFL argues that its broadcasting rights include the sale of 'Sunday Ticket' under its antitrust exemption, while the plaintiffs claim this exemption only applies to over-the-air broadcasts, not pay TV.
If found liable, the NFL could face damages of up to $21 billion due to the potential tripling of damages in antitrust cases.
During the trial, evidence presented by the plaintiffs revealed concerns from networks like Fox and CBS about the impact of a more widely distributed 'Sunday Ticket' package on local game ratings. The NFL's decision to partner with DirecTV for the package was attributed to the platform's national distribution compared to fragmented cable companies.
Goodell mentioned that the league was dissatisfied with DirecTV in the final years of their agreement, citing a decline in product innovation and marketing after AT&T acquired the satellite company. Despite considering terminating the contract, the NFL continued with DirecTV until 2022 due to streaming not being deemed ready to handle the package's demand.
The league eventually transitioned to streaming the 'Sunday Ticket' package through a deal with Google's YouTube TV starting in 2023. Goodell highlighted the NFL's commitment to reaching a broad audience through free television broadcasts, emphasizing the league's pro-consumer approach.
Goodell also discussed the decision to sell Thursday night games to various networks based on production quality, with Amazon Prime Video taking over the package in 2022. Dallas Cowboys owner Jerry Jones supported the league's broadcast model, expressing concerns about individual team TV deals.
The trial will continue with further testimonies from Jones and other key figures involved in the case.
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