GOOGL - How Google And YouTube TV Are Impacted By The NFL's Antitrust Verdict

2024-06-28 13:16:19 ET

Summary

• A class action antitrust suit brought against the NFL for the NFL Sunday Ticket package resulted in a nearly $5 billion judgment against the league that, if upheld, could have massive repercussions.
• At the heart of the case is the arrangement between the NFL and DirecTV over its “Sunday Ticket" Package, which has since shifted over to Google’s YouTube TV.
• The plaintiffs claimed the league broke antitrust laws by selling this package at an inflated price and turning down bids that would have led to cheaper subscriptions and easier access.
• The league believes previous laws in effect given it specific exemptions to antitrust rules, and while the jury sided with the plaintiffs, the judge still may decide to intervene.
• For Google/YouTube TV, they're stuck in the middle as the deal should remain valid, but if freed (or forced) to make changes to the pricing, it could potentially lose the package.

A few years back when Google/YouTube TV (NASDAQ: GOOG ) won the rights to the “NFL Sunday Ticket” Package it was seen as a major win. After all, this was a powerful bundle that seemed perfectly suited to the company’s business plan and structure – although now investors are wondering if it could turn into a headache....

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