LOS ANGELES — NFL Commissioner Roger Goodell reiterated throughout testimony in federal court docket Monday that the league’s “Sunday Ticket” package deal, the topic of a class-action lawsuit, is a premium product whereas additionally defending the league’s broadcast mannequin.
Goodell was known as as a witness by the NFL because the trial for the lawsuit filed by “Sunday Ticket” subscribers entered its third week and was on the stand for almost 4 hours.
“We’ve been clear all through that it’s a premium product. Not simply on pricing however high quality,” Goodell stated throughout cross-examination in a Los Angeles courtroom. “Followers make that selection whether or not they wished it or not. I am positive there have been followers who stated it was too expensive.”
Goodell, who has been commissioner since 2006, stated he believes that is the primary time he has been known as to testify in federal court docket throughout his tenure.
The category-action, which covers 2.4 million residential subscribers and 48,000 companies who paid for the package deal from 2011 via 2022, claims the league broke antitrust legal guidelines by promoting its package deal of out-of-market Sunday afternoon video games at an inflated worth. The subscribers additionally say the league restricted competitors by providing “Sunday Ticket” solely on a satellite tv for pc supplier.
The NFL maintains it has the suitable to promote “Sunday Ticket” below its antitrust exemption for broadcasting. The plaintiffs say that solely covers over-the-air broadcasts and never pay TV.
If the NFL is discovered liable, a jury might award $7 billion in damages, however that quantity might balloon to $21 billion as a result of antitrust circumstances can triple damages.
Throughout the first two weeks of the trial, reveals by the plaintiffs confirmed that Fox and CBS have lengthy been involved about how competitors from a extra extensively distributed “Sunday Ticket” package deal might have an effect on scores for domestically aired video games.
Former CBS Sports activities chairman Sean McManus stated in an memo to the NFL that the community had all the time thought “the idea has all the time been that these packages are offered at a premium, thereby limiting distribution.”
Goodell stated the NFL determined to place “Sunday Ticket” on DirecTV from 1994 via 2022 as a result of it was one the few platforms accessible that had nationwide distribution. He cited the fragmented nature of cable firms for why it wasn’t accessible on cable.
Goodell additionally testified that the league was not proud of DirecTV in the course of the ultimate years of the settlement. AT&T purchased the satellite tv for pc firm in 2015, and the league seen that product innovation and advertising declined after that.
In a Nov. 6, 2018, electronic mail debating whether or not to train getting out of the contract after the 2019 season, league executives cited that advertising declined by 28% in the course of the 2018 season.
The league determined, although, to stick with DirecTV for the ultimate three seasons of the deal (2020 via 2022) as a result of streaming had not superior to the extent that the NFL thought it might deal with the demand of dealing with your entire package deal.
“Streaming was not prepared for prime time,” Goodell stated.
The league did finally go streaming for your entire “Sunday Ticket” package deal, signing a seven-year take care of Google’s YouTube TV that started with the 2023 season.
Goodell additionally stated the league’s broadcast mannequin, the place native video games can be found over the air for all video games, is why NFL video games are extremely rated.
“We sing it from the mountaintops, We wish to attain the broadest potential viewers on free tv,” he stated. “I believe we’re very pro-consumer. Our companions have discovered methods to construct our fan base.”
Goodell additionally stated that one cause the league determined to promote Thursday night time video games that had been solely on NFL Community from 2006 via 2013 to different networks was due to the standard of manufacturing.
Thursday night time video games have been shared by CBS and NBC from 2014 via 2016 earlier than Fox aired them for the following 5 seasons. Amazon Prime Video took over the package deal in 2022.
“I had my very own opinion that our manufacturing was beneath requirements that the networks (Fox and CBS) had set. We had not met that normal,” he stated.
Dallas Cowboys proprietor Jerry Jones, a member of the league’s media committee, was known as to the stand after Goodell. Jones additionally defended the league’s broadcast mannequin, though if groups might promote their out-of-market rights individually, the Cowboys could be one of many high groups to learn.
“I’m satisfied I might make much more cash than the Bengals,” Jones stated. “I am fully in opposition to every staff doing TV offers. It’s flawed.”
Jones will proceed his testimony on Tuesday. McManus can be anticipated to be known as to the stand.
