ECONOMY

NFL being sued in the US: Why is NFL being sued in the US in an anti-trust law petition? Know the inside story

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In a lawsuit before a jury in Los Angeles, the National Football League (NFL) may be forced to shell out at least $7 billion while this amount may go up to $21 billion as this involves a potential violation of various anti-trust laws of the US. This is one of the most competitive lawsuits being filed in the sports world and what started as a frivolous legal petition, as seen by some turned into a textbook case study of anti-trust laws. This case has come up for a hearing on Wednesday. This journey of this lawsuit began in 2015.

What is the case?

This involves the sale of some broadcasting rights by the National Football League. In 2015, a San Francisco bar named Mucky Duck filed a case against the NFL on how it dealt with its out-of-market broadcasts. Over the years, the case went through the normal legal discourse and was dismissed before it was admitted on appeal.
The NFL and its teams have been accused of pooling in together concerning their broadcasting rights and preventing consumers from having larger choices. What exactly has been alleged in the class action suit is that the NFL Sunday Ticket is priced higher than a regular broadcast game and the broadcast of these off-season games was relatively higher than a regular game broadcast.

Further, the monopoly of the NFL restricted the consumers from exercising their rights towards other options and further, they were sold products which they didn’t want to purchase. The coming together of various teams that pooled their broadcasting rights resulted in a cartel and monopoly which caused massive losses to the viewers, pubs and other business establishments.

What happens?

Various officials of the NFL will be called to testify before the jury. DirectTv which offers these Sunday tickets will not be a part of this lawsuit as they are part of an arbitrary proceeding elsewhere.

What are the anti-trust laws?

These are anti-competition laws that prevent business mergers, cartels and business deals that create monopolies and restrict the rights of exercising options by the consumers. The anti-trust laws in the US triple the amount. This lawsuit involving $7 billion may go up to $21 billion.

FAQs:

What is the NFL Sunday Ticket?
These off-season games which are not broadcast on NBC, Fox Sports, or any other broadcasting channel are televised by the purchase of a Sunday Ticket. It is sold by DirectTV.

How much does a Sunday Ticket cost?
Its cost ranges from $112.25 to $449. It permits subscribers access to games on YouTube tv.

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