Trending News|July 21, 2015 09:53 EDT
NFL 2015 News: League's $12 Billion Deal with DirecTV faces Major Antitrust Lawsuit
The NFL and DirecTV will be facing a major class-action lawsuit after prominent antitrust lawyer Michael Hausfeld and colleagues at Hausfeld LLP filed one on Monday.
As reported by The Hollywood Reporter, Hausfeld seeks to represent a class of "commercial subscribers" to DirecTV's Sunday Ticket, with plaintiffs being bars and restaurants across the U.S. San Francisco pub The Mucky Duck is leading the charge towards ending what the plaintiffs consider a conspiracy.
DirecTV's Sunday Ticket is a package of all out-of-market NFL games. As noted by the report, if bars and restaurants want to show those games, they have no choice but to go through DirecTV, which as an exclusive $12 billion deal with the league.
The lawsuit points out that a bar with an occupancy of up to 100 patrons will pay $2,314 for Sunday Ticket in 2015, while larger establishments like hotels are charged more than $120,000 per year.
The complaint states that for NFL teams' agreement in which DirecTV has joined, teams would be competing against each other in the market for NFL football programming, a situation that is believed to induce more competitive pricing.
The report notes that last month, lawyers representing football fans filed their own class-action lawsuit over Sunday Ticket, which sought to end a system of blackouts and all-or-nothing out-of-market TV game packages.
"Of the four major professional sports in this country"”baseball, basketball, hockey, and football"”the only one with an exclusive out of market broadcasting arrangement is the NFL/DirecTV Sunday Ticket," states the complaint. "Major League Baseball, the National Basketball Association, and the National Hockey League all distribute live out of market games through multiple MVPDs [multichannel video programing distributors], including, for example, DirecTV, Dish Network, Comcast, Cox Cable and Time Warner.
The Hollywood Reporter points out that the plaintiffs are seeking the recovery of damages for "supracompetitive premiums" that DirecTV has charged for NFL Sunday Ticket, as well as an injunction on a deal renewed in 2014.