Why is the NFL facing legal action under US anti-trust law? Know The Full Story

The National Football League (NFL) could have to pay at least $7 billion in violation of many anti-trust US Laws. The pay amount could even go as high as $21 billion.

The National Football League (NFL) could have to pay at least $7 billion in violation of many anti-trust US Laws. The pay amount could even go as high as $21 billion. This is one of the most competitive disputes in the sports industry, and against the opinions of some, it began as a pointless court petition that eventually became a classic example of an antitrust law case study. There will be a hearing on this case on Wednesday. The lawsuit’s journey started in 2015. 

What is the Case NFL Antitrust Lawsuit?

NFL commissioner Roger Goodell is among those who are expected to testify during a trial in Los Angeles that is set to open this week. (George Walker IV / Associated Press)
NFL commissioner Roger Goodell is among those who are expected to testify during a trial in Los Angeles that is set to open this week. (George Walker IV / Associated Press)

The National Football League is selling a portion of its TV rights in this deal. The NFL was sued in 2015 by Mucky Duck, a bar in San Francisco for handling its out-of-market broadcasts. The lawsuit proceeded through the standard court proceedings throughout the years and was dropped before being accepted on appeal.

It has been alleged that the NFL and its clubs are united in their pursuit of television rights, thereby limiting the options available to consumers. The NFL Sunday Ticket is more expensive than a typical broadcast match, and the cost of broadcasting these off-season games was higher overall, according to the class action lawsuit.   

Additionally, consumers were forced to purchase products they didn’t want to by the NFL’s monopoly, which prevented them from exercising their right to select another business. A cartel and monopoly were created when different teams combined to pool their broadcasting rights, causing enormous losses for fans, bars, and other businesses.

Also Read: 5 NFL Teams Poised for Breakout Seasons in 2024

What Happens Exactly?

Several NFL officials will be called to testify in front of the jury. Since these Sunday tickets are part of an existing proceeding elsewhere, DirectTv, the company that offers them, will not be involved in this action. 

What are the US anti-trust laws? 

These anti-competition laws forbid business mergers, cartels, and transactions that establish monopolies and limit the ability of customers to exercise their options. In the US, antitrust laws triple the amount and now the $7 billion lawsuit may potentially reach $21 billion.