IN THE UNITED STATES DISTRICT COURT SOUTHERN DISTRICT

IN THE UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF NEW YORK

-------------------------------------------

Trilogy Holding, LLC d/b/a Bounce Sporting Club;

New Lounge 4324, LLC

d/b/a Bounce Sporting Club;

Pedal Haus

Brewery, LLC; Whiskey Rocks Tempe,

LLC

d/b/a Gringo Star Street Bar; and Jonathan

Frantz

, on behalf of themselves and a class of all

others similarly situated

Plaintiffs,

-against-

ational Football League, Inc.; NFL Enterprises LLC

;

rizona Cardinals Holdings, Inc.; Atlanta Falcons

ootball Club LLC; Baltimore Ravens Limited

artnership; Buffalo Bills, LLC; Panthers Football

LLC

; Chicago Bears Football Club, Inc.; Cleveland

rowns Football Company, LLC; Dallas Cowboys

ootball Club, Ltd.; PDB Sports, Ltd. d/b/a Denver

roncos Football Club; Detroit Lions, Inc.; Green B

ackers, Inc.; Houston NFL Holdings LP;

ndianapolis Colts, Inc.; Jacksonville Jaguars LLC;

ansas City Chiefs Football Club, Inc.; Miami

olphins, Ltd.; Minnesota Vikings Football Club

LLC

; New England Patriots, LP; New Orleans

ouisiana Saints LLC; New York Football Giants,

nc.; New York Jets LLC; Oakland Raiders LP;

hiladelphia Eagles Football Club, Inc.; Pittsburgh

Steelers Sports

, Inc.; Chargers Football Co., LLC; S

rancisco Forty Niners II, LLC; Football Northwest

LLC

; The Rams Football Company LLC; Buccaneers

imited Partnership; Tennessee Football, Inc.;

ashington Football, Inc.; CBS Corporation; Fox

roadcasting Company; NBCUniversal Media, LLC;

ESPN

Inc.; DirecTV Holdings, LLC; and DirecTV,

LLC

Defendants.

Case No

. 15-cv-8188

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COMPLAINT

1. The 32 professional football teams that compete in the National Football League

(“NFL”) have agreed among themselves to eliminate all competition in the broadcasting and sale

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of live video presentations of professional football games. As the Supreme Court has observed,

each team “is a substantial, independently owned, and independently managed business,”

competing with its rivals “not only on the playing field, but to attract fans, for gate receipts and

for contracts with managerial and playing personnel,” as well as “in the market for intellectual

property.” Am. Needle, Inc. v. NFL, 560 U.S. 183, 196-97 (2009). Yet rather than compete in the

multibillion-dollar football broadcasting market, they have joined forces to restrict supply and

raise prices.

2. It has been clear for more than half a century that such agreements unreasonably

restrain trade. In 1953, the Department of Justice sued the NFL and its teams, alleging among

other things that a far more limited agreement—an agreement merely prohibiting teams from

broadcasting within 75 miles of another team’s city when that team was playing a televised game

away from home—was illegal under the Sherman Act. See United States v. NFL, 116 F. Supp.

319 (E.D. Pa. 1953) (“NFL I”). The United States District Court for the Eastern District of

Pennsylvania readily agreed that that agreement was an unjustified attempt to “enable the clubs .

. . to sell monopoly rights” and “an unreasonable and illegal restraint of trade.” Id. at 326-27.

3. In 1961, the court applied this ruling to prevent the joint selling of broadcast

rights. United States v. NFL, 196 F. Supp. 445 (E.D. Pa. 1961) (“NFL II”). In response to this

ruling, the NFL lobbied for and obtained a carefully limited antitrust exemption that allows a

league of professional football clubs to jointly sell or transfer sponsored telecasting rights. This

bill, the Sports Broadcasting Act of 1961 (“SBA”), 15 U.S.C. § 1291, exempted only “the free

telecasting of professional sports contests,” as former NFL Commissioner Pete Rozelle

“[a]bsolutely” recognized. Congress expressly left the holdings of NFL I in place, 15 U.S.C.

§ 1292, and provided no exemption for pay television distribution.

Case 1:15-cv-08188 Document 1 Filed 10/16/15 Page 2 of 40

4. For some time after the SBA’s passage, the NFL and its Teams were content to

abide by its limits and jointly produce only free sponsored telecasts, available to anyone with a

television and a set of rabbit ears (or the modern equivalent, a digital antenna). As cable and

satellite television began to present lucrative opportunities, however, the Teams chose not to

compete in this new sphere. Instead, they agreed to forgo all competition and sell their valuable

products only jointly, throttling the supply of professional football telecasts in violation of the

holdings of NFL I and II, and outside the carefully limited exemption of the SBA.

5. No other major sports league in America has such a drastic, total elimination of

competition in the broadcasting market. While Major League Baseball (“MLB”), the National

Hockey League (“NHL”), and the National Basketball Association (“NBA”) have each allocated

markets geographically and pooled so-called “out-of-market” rights, none has agreed to

centralize control and sale of all broadcast rights.

6. The anticompetitive effects of this agreement are clear and significant. The

agreement has restricted the availability of live video presentations of regular season NFL

games. The Teams have agreed not to avail themselves of cable, satellite, or Internet distribution

channels individually. In the absence of an agreement, each team would have an incentive to

distribute its games nationally in these channels. Given the relatively low cost of Internet

streaming and satellite and cable television carriage, each team acting independently would offer

their games at a competitive price to anybody in the country who wanted to watch that particular

team.

Although not at issue here, these agreements are themselves anticompetitive and illegal

under the antitrust laws. See generally Laumann v. NHL, 56 F. Supp. 3d 280, 297-302 (S.D.N.Y.

2014).

Case 1:15-cv-08188 Document 1 Filed 10/16/15 Page 3 of 40

7. Instead, however, the Teams have all forgone this option in favor of creating a

more lucrative monopoly. The Teams have agreed to make an offering called “NFL Sunday

Ticket” (“Sunday Ticket”) the only way to view games other than the limited selection of games

broadcast through sponsored telecasts (or, as discussed below, the cable channels ESPN and

NFL Network) in any given area. Sunday Ticket bundles all other games into one package, sold

jointly by the NFL to DirecTV and then to consumers.

8. This scheme thus doubly overcharges Sunday Ticket purchasers. First, the total

elimination of competition allows the NFL, its Teams, and DirecTV to charge supracompetitive

monopoly prices, rather than the prices that would exist if the 32 teams were competing for

interest and distribution in a free market. Second, Class members must pay for access to all 32

teams’ games, even if they are only interested in viewing one or two teams’ games.

9. In addition to allowing Defendants to charge supracompetitive prices for Sunday

Ticket, this scheme protects the five networks that currently contract with the NFL to broadcast

regular season NFL games: the cable channels ESPN and NFL Network, and the terrestrial

networks CBS, NBC, and Fox (collectively, the “Network Defendants”). By limiting the

availability of competing products, the agreements drive up the market share and value of the

Network Defendants’ broadcasts. This allows the Network Defendants to increase advertising

revenue and demand higher affiliation or retransmission consent fees from multichannel video

programming distributors (“MVPDs”; i.e., cable and satellite providers), which in turn are passed

on to Plaintiffs, Class members, and others who purchase MVPD packages.

10. To obtain the benefits of this protection from competition, the Network

Defendants have insisted upon and knowingly abetted the Teams’ anticompetitive horizontal

agreement. Each has agreed to provide its broadcasts to Sunday Ticket, ensuring that individual

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teams will not need to create their own broadcasts competitive with the Network Defendants’

broadcasts. Their contracts guarantee the continuation of the horizontal scheme, and they have

insisted that the NFL restrict the distribution of competing games.

11. DirecTV has also willfully joined, encouraged, and entrenched the teams’

conspiracy. It contracted with the NFL to make Sunday Ticket exclusive to DirecTV, so that no

other cable or satellite distributor could sell it. In doing so, it required that the NFL and its Teams

preserve their anticompetitive agreement not to compete with one another. DirecTV’s agreement

to carry Sunday Ticket and not to deal individually with NFL teams is premised upon the

continued existence of the anticompetitive agreement not to create and distribute individual team

telecasts. On information and belief, DirecTV’s contracts with the NFL include clauses

mandating that the NFL and its Teams retain that anticompetitive scheme.

12. This exclusive distribution arrangement is unique among American sports. The

comparable bundles of MLB, NHL, and NBA games are each available from numerous

distributors, not only DirecTV but many cable companies and competing satellite providers. Not

coincidentally, they are all sold at significantly lower prices, despite being subject to

anticompetitive restraints of their own. Similarly, outside the United States, the NFL distributes

Sunday Ticket through numerous distributors, or even offers the games online without tying

them to an MVPD subscription.

13. Given these three sources of supracompetitive pricing and unlawfully protected

market power—the agreement not to compete; the agreement to allow only purchases of a bundle

of all 32 teams; and the agreement to sell exclusively through DirecTV—it is no surprise that

Defendants are able to charge exorbitant prices to Plaintiffs and other class members. Individuals

currently pay as much as $359 per season, roughly twice as much as the cost of any other major

Case 1:15-cv-08188 Document 1 Filed 10/16/15 Page 5 of 40

league sports package. Bars, restaurants, hotels, and other commercial establishments have it

even worse. Limited to only one source for the football programming that many of their

customers demand, commercial establishments pay anywhere from $1,458 a year to more than

$120,000 a year—as much as ten times more than they pay for other sports packages.

14. Several examples from other sports leagues confirm the harm such agreements

wreak on competition. After the Supreme Court condemned the NCAA’s broadcast restraints,

output exploded, such that dozens of NCAA football games are now televised every week in

every location in the United States. At least three professional sports teams have sued their

leagues alleging that their comparable restraints were anticompetitive. And courts have held

multiple trials to determine the competitive effects of similar agreements, always concluding that

they unreasonably restrained trade.

15. The agreements challenged in this complaint drastically curb output, reduce

choice, and increase price. They unreasonably restrain trade in violation of Section One of the

Sherman Act, 15 U.S.C. § 1, and allow the NFL to unlawfully monopolize the market for live

video presentation of professional football games in violation of Section Two of the Sherman

Act, 15 U.S.C. § 2. Accordingly, Plaintiffs, on behalf of themselves and a Class of others

similarly situated, seek injunctive relief putting an end to this anticompetitive scheme and

damages to compensate the Class for the supracompetitive overcharges they have paid.

JURISDICTION AND VENUE

16. This Court has subject matter jurisdiction over Plaintiffs’ federal claims pursuant

to 28 U.S.C. §§ 1331 and 1337.

17. Venue is proper in this District pursuant to 28 U.S.C. § 1391 and 15 U.S.C. § 22.

Defendants transact business in this District and are subject to personal jurisdiction here. Several

Case 1:15-cv-08188 Document 1 Filed 10/16/15 Page 6 of 40

Defendants, including National Football League, Inc., NFL Enterprises LLC, CBS Corporation,

Fox Broadcasting Company, and NBCUniversal, Inc. are headquartered in this District. Plaintiffs

Trilogy Holding, LLC and New Lounge 4324, LLC are also located and headquartered in this

District.

18. Tens of thousands if not hundreds of thousands of Class members were injured in

this District.

PARTIES

A. Plaintiffs

19. Plaintiff Trilogy Holding, LLC d/b/a Bounce Sporting Club is a New York

limited liability company with its principal place of business in New York. It owns and operates

Bounce Sporting Club, located at 1403 2nd Avenue in Manhattan. Bounce Sporting Club

purchased Sunday Ticket from DirecTV for the 2015 season and previous seasons.

20. New Lounge 4324, LLC d/b/a Bounce Sporting Club is a New York limited

liability company with its principal place of business in New York. It owns and operates Bounce

Sporting Club, located at 55 West 21st Street in Manhattan. Bounce Sporting Club purchased

Sunday Ticket from DirecTV for the 2015 season and previous seasons.

21. Plaintiff Pedal Haus Brewery, LLC is an Arizona limited liability company with

its principal place of business in Arizona. It owns and operates Pedal Haus Brewery, which

purchased Sunday Ticket from DirecTV for the 2015 season and previous seasons.

22. Plaintiff Whiskey Rocks Tempe, LLC is an Arizona limited liability company

with its principal place of business in Arizona. It owns and operates Gringo Star Street Bar,

which purchased Sunday Ticket from DirecTV for the 2015 season and previous seasons.

23. Plaintiff Jonathan Frantz is an individual residing in Oakland, California. Mr.

Frantz purchased Sunday Ticket from DirecTV for the 2015 season and previous seasons.

Case 1:15-cv-08188 Document 1 Filed 10/16/15 Page 7 of 40

B. The NFL Defendants

24. Defendant National Football League, Inc. is an incorporated association of the 32

football teams in the National Football League (the “Teams”) with its principal place of business

in New York, New York.

25. NFL Enterprises LLC is a limited liability company with its principal place of

business in New York, New York. On information and belief, the Teams have licensed all

television broadcasting rights to NFL Enterprises LLC, which negotiates with broadcasters to

distribute all live video presentations of NFL games and owns and operates NFL Network.

26. The 32 Teams are owned and operated by the following entities, each of which is

a defendant in this action:

a. Arizona Cardinals Holdings, Inc., an Arizona corporation with its

principal place of business in Arizona;

b. Atlanta Falcons Football Club LLC, a Georgia limited liability company

with its principal place of business in Georgia;

c. Baltimore Ravens Limited Partnership, a Maryland limited partnership

with its principal place of business in Maryland;

d. Buffalo Bills, LLC, a New York limited liability company with its

principal place of business in New York;

e. Panthers Football LLC, a North Carolina limited liability company with its

principal place of business in North Carolina;

f. Chicago Bears Football Club, Inc., a Delaware corporation with its

principal place of business in Illinois;

g. Cincinnati Bengals, Inc., an Ohio corporation with its principal place of

business in Ohio;

Case 1:15-cv-08188 Document 1 Filed 10/16/15 Page 8 of 40

h. Cleveland Browns Football Company, LLC, a Delaware limited liability

company with its principal place of business in Cleveland;

i. Dallas Cowboys Football Club, Ltd., a Texas limited partnership with its

principal place of business in Texas;

j. PDB Sports, Ltd. d/b/a Denver Broncos Football Club, a Colorado

corporation with its principal place of business in Colorado;

k. Detroit Lions, Inc., a Michigan corporation with its principal place of

business in Michigan;

l. Green Bay Packers, Inc., a Wisconsin corporation with its principal place

of business in Wisconsin;

m. Houston NFL Holdings LP, a Delaware limited partnership with its

principal place of business in Texas;

n. Indianapolis Colts, Inc., a Delaware corporation with its principal place of

business in Indiana;

o. Jacksonville Jaguars LLC, a Florida limited liability company with its

principal place of business in Florida;

p. Kansas City Chiefs Football Club, Inc., a Texas corporation with its

principal place of business in Missouri;

q. Miami Dolphins, Ltd., a Florida limited partnership with its principal

place of business in Florida;

r. Minnesota Vikings Football Club LLC, a Minnesota limited liability

company with its principal place of business in Minnesota;

Case 1:15-cv-08188 Document 1 Filed 10/16/15 Page 9 of 40

s. New England Patriots, LP, a Delaware limited partnership with its

principal place of business in Massachusetts;

t. New Orleans Louisiana Saints LLC, a Texas limited liability company

with its principal place of business in Louisiana;

u. New York Football Giants, Inc., a New York corporation with its principal

place of business in New Jersey;

v. New York Jets LLC, a Delaware limited liability company with its

principal place of business in New Jersey;

w. Oakland Raiders LP, a California limited partnership with its principal

place of business in California;

x. Philadelphia Eagles Football Club, Inc., a Delaware corporation with its

principal place of business in Philadelphia;

y. Pittsburgh Steelers Sports, Inc., a Pennsylvania corporation with its

principal place of business in Pennsylvania;

z. Chargers Football Company, LLC, a California limited liability company

with its principal place of business in California;

aa. San Francisco Forty Niners II, LLC, a California limited liability company

with its principal place of business in California;

bb. Football Northwest LLC, a Washington limited liability company with its

principal place of business in Washington;

cc. The Rams Football Company LLC, a Delaware limited liability company

with its principal place of business in Missouri;

Case 1:15-cv-08188 Document 1 Filed 10/16/15 Page 10 of 40

dd. Buccaneers Limited Partnership, a Delaware limited partnership with its

principal place of business in Florida;

ee. Tennessee Football, Inc., a Delaware corporation with its principal place

of business in Tennessee; and

ff. Washington Football, Inc., a Maryland corporation with its principal place

of business in Washington, D.C.

27. This complaint uses “NFL” to refer collectively to the 32 Teams, National

Football League, Inc., and NFL Enterprises, LLC.

C. The Network Defendants

28. Defendant CBS Corporation (“CBS”) is a Delaware corporation with its principal

place of business in New York, New York. On information and belief, CBS contracts with NFL

to produce and broadcast live video presentations of regular season NFL games.

29. Defendant Fox Broadcasting Company (“Fox”) is a Delaware corporation with its

principal place of business in New York, New York. On information and belief, Fox contracts

with NFL to produce and broadcast live video presentations of regular season NFL games.

30. NBCUniversal Media, LLC (“NBC”) is a Delaware limited liability company

with its principal place of business in New York, New York. On information and belief, NBC

contracts with NFL to produce and broadcast live video presentations of regular season NFL

games.

31. ESPN Inc. (“ESPN”) is a Delaware corporation with its principal place of

business in Bristol, Connecticut. On information and belief, ESPN contracts with NFL to

produce and broadcast live video presentations of regular season NFL games.

32. This Complaint uses “Network Defendants” to refer collectively to CBS, Fox,

NBC, and ESPN.

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D. DirecTV

33. Defendant DirecTV Holdings, LLC is a Delaware limited liability company with

its principal place of business in El Segundo, California. DirecTV Holdings LLC is the principal

United States operating arm of DirecTV, Inc.

34. Defendant DirecTV, LLC is a California limited liability company with its

principal place of business in El Segundo, California. DirecTV, LLC issues bills to commercial

subscribers to its satellite television packages, including Sunday Ticket.

35. This Complaint uses “DirecTV” to refer collectively to these two entities.

FACTUAL ALLEGATIONS

A. The NFL and Its Teams’ Monopoly Control of the Relevant Market

36. The NFL is the largest and most popular sports league in America, and the only

professional football league of any significance in the country.

37. The NFL currently comprises 32 Teams. Each of those Teams is an independently

owned and operated business. While the Teams must collaborate on certain sport-related topics,

such as roster size and game rules, they are otherwise horizontal competitors vying for revenue,

fans, personnel, and other economic goods.

38. The NFL itself is a trade association of the 32 Teams. Until 2015, it was

organized as a nonprofit, albeit one whose principal executive officer, Commissioner Roger

Goodell, earned roughly $30 million per year.

39. As that salary illustrates, professional American football is big business. The NFL

and its clubs take in an estimated $7.3 billion in annual revenue. While much of that revenue is

earned from the Teams’ independent competitive activity—gate receipts, concessions,

merchandising, and the like—the largest share comes from broadcast revenue. The Teams have

pooled their broadcast rights, agreeing that none shall individually license the rights to broadcast

Case 1:15-cv-08188 Document 1 Filed 10/16/15 Page 12 of 40

their games or otherwise individually offer them in the market. The NFL licenses these pooled

rights for an estimated $6 billion annually.

40. One reason the NFL can command such high rights fees is its monopoly power in

the relevant market. The live video presentation of regular season NFL games is a cognizable

product market. NFL broadcasts have unique attributes that set them apart from other sports or

leisure activities. No other professional major league sport combines the ritual of once-a-week

games, the rhythm and explosive energy of football, the intricate strategy of NFL playcalling,

and countless other intangible attributes that have made football uniquely appealing to American

sports fans.

41. Similarly, no other entity competes to any significant degree with the NFL in

offering professional football games in the United States or broadcasting those games to fans.

Since the NFL was created in 1920, no new entrant has had any durable success in entering the

market without being co-opted by the NFL. Every attempt at introducing a new league in the

United States has folded within a few years, save for the American Football League in 1960,

which merged with the NFL once it showed competitive promise.

42. The two other professional football leagues currently operating in America

illustrate the NFL’s dominance. The Arena Football League, an indoor league with substantially

different rules, plays in spring and summer to avoid overlapping with the NFL’s schedule and

broadcasts many of its games online for free, for lack of any substantial market success. The Fall

Experimental Football League, founded in 2014, is not intended as a competitor to the NFL but a

“feeder” league to train prospective NFL officials and develop players not currently on NFL

teams. It gives away its broadcasts for free and has stated that it does not expect to be profitable

without official NFL support.

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43. Geographically, the market is contiguous with the United States. The NFL and its

broadcast partners have limited their contracts to the United States, recognizing the geographic

extent of the market. Moreover, consumers interested in watching regular season NFL games

consider games from all over the country, basing viewing decisions on the availability and

particular appeal of individual games due to factors such as team loyalty, the quality of players,

and the importance to playoff races.

44. In the absence of the horizontal agreement to restrain output in this market, the 32

Teams would compete with one another for viewership, advertising revenues, and rights fees.

But the horizontal agreement to eliminate all such competition makes the NFL the only

competitor of any significance, giving it monopoly power within the relevant market.

B. Relevant History of NFL Broadcasting Agreements

45. Television coverage of NFL games began in 1939, with regular broadcasting

beginning after World War II. By 1950, teams in Los Angeles and Washington, D.C. had

negotiated contracts for all of their games to be televised, with many other teams following suit

over the course of the 1950s.

46. As these early clubs worked to get their nascent broadcasting contracts in place,

they jointly agreed to restrict broadcasting competition. As of 1953, Article X of the NFL’s by-

laws prohibited any team from broadcasting its games within 75 miles of another team’s home

city if that second team was either playing a game at home or playing a game on the road and

broadcasting it back home. These restrictions “effectively prevent[ed] ‘live’ broadcasts or

telecasts of practically all outside games in all the home territories.” NFL I, 116 F. Supp. at 321.

“Outside games” were defined as games “played outside the home territory of a particular

home club and in which that home club [was] not a participant.” Id.

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47. The Department of Justice sued to enjoin enforcement of Article X, contending

that it was illegal under Section One of the Sherman Act.

48. The United States District Court for the Eastern District of Pennsylvania (writing

before the Supreme Court had explained that market allocation was per se illegal) considered the

competitive effects of the restriction. After noting that, at that time, “less than half the clubs over

a period of years are likely to be financially successful” and some teams were “close to financial

failure,” it found that “[r]easonable protection of home game attendance [was] essential to the

very existence of the individual clubs” and that prohibiting broadcasting of outside games while

a team was playing a home game was reasonable. Id. at 323-25.

49. At the same time, the NFL I court rejected the argument that teams could legally

agree not to broadcast in each other’s territories when the local team was not playing a home

game, which “obvious[ly] . . . cannot serve to protect game attendance.” Id. at 326. Rather, it

found, “the testimony of defendants’ witnesses consistently indicates that the primary reason for

the restrictions in this situation actually is to enable the clubs in the home territories to sell

monopoly rights to purchasers of television rights to [their] away games.” Id. (footnote omitted).

It therefore held this restriction to be illegal. Id. at 327. It similarly condemned a provision

prohibiting radio broadcasts of outside games, finding that even when teams were playing at

home there was no evidence of “any significant adverse effect on gate attendance” but only an

enhancement of “the value of such rights to purchasers.” Id.

50. In the years following this ruling, NFL teams expanded their broadcasting output.

By 1960—just a decade after the first clubs obtained distribution for all of their games—most

NFL teams were broadcasting their entire seasons, and Sunday games were available on every

national network.

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51. Despite this growing success, the NFL and the Teams were not satisfied with

competitive results. Instead, they determined that they could make significantly more money by

pooling and thus monopolizing their rights, allowing them both to demand higher rights fees

from networks and offer networks the ability to be the sole source of NFL games. The Teams

therefore transferred their rights to the NFL, which then sold to CBS “the sole and exclusive

right to televise all League games.” NFL II, 196 F. Supp. at 446.

52. The United States District Court for the Eastern District of Pennsylvania again

had no trouble finding that “the member clubs of the League have eliminated competition among

themselves in the sale of television rights to their games.” Id. at 447. It therefore found the CBS

contract to violate its judgment in NFL I and prohibited the enforcement of the contract. Id.

53. The NFL next turned to Congress, lobbying for an antitrust exemption that would

overturn NFL II and allow them to pool their rights for the purpose of selling games to over-the-

air networks that were available to all viewers for free. This lobbying resulted in the passage of

the SBA, which exempted from the Sherman Act

any agreement by or among persons engaging in or conducting the organized

professional team sport[] of football . . . , by which any league of clubs

participating in professional football . . . contests sells or otherwise transfers all or

any part of the rights of such league’s member clubs in the sponsored telecasting

of the game[] of football . . . engaged in or conducted by such clubs.

15 U.S.C. § 1291.

54. “[S]ponsored telecasting” as used in the SBA includes “only the free telecasting

of professional sports contests, and does not cover pay T.V.” Shaw v. Dallas Cowboys Football

Club, Ltd., No. 97-cv-5184, 1998 WL 419765, at *4 (E.D. Pa. June 23, 1998), aff’d, 172 F.3d

299 (3d Cir. 1999) (quoting Telecasting of Professional Sports Contests: Hearing before the

Antitrust Committee of the House Committee on the Judiciary on H.R. 8757, 87th Cong. 1st

Sess. at 36 (Sept. 13, 1961). Even then-Commissioner Rozelle acknowledged that this was

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“[a]bsolutely” correct. Id. “Subscription television,” such as cable and satellite television, was

excluded from the exemption. See, e.g., Shaw, 172 F.3d at 301-03; Laumann v. NHL, 907 F.

Supp. 2d 465, 489 n.141 (S.D.N.Y. 2012).

55. The NFL and its Teams were content to abide by this limitation for some 25

years, broadcasting on as many as three free, over-the-air networks simultaneously. Once again,

however, the lure of increased revenues proved irresistible. With the growth of cable

television—which, unlike the sponsored telecasts envisioned by the SBA, are available only to

paying subscribers—and its lucrative subscriber base, the NFL and its Teams chose to ignore the

limitations on the exemption they had received in the SBA and instead to sell their horizontally

pooled rights to cable networks.

56. In 1987, ESPN became the first cable broadcaster of NFL games—games that

were subject to the same restrictive horizontal agreement that had previously been used only to

arrange the publicly available sponsored telecasts.

57. As a result of the NFL and its Teams’ output restrictions, consumers in any given

area had no authorized means of watching most regular season NFL games, despite the

increasing capacity to distribute the games and the decreasing cost of doing so. Instead, they

were artificially limited to those few games, usually no more than four or five per week (and no

more than two at any given time), that the Network Defendants and the NFL chose to broadcast

in their area. This artificially constrained output created a large, unserved demand for the

inaccessible games, leading to a surge in piracy of distant feeds in the 1980s.

58. The NFL wanted to cut down on this piracy (which, though it fueled interest in

football, did not directly profit the NFL or its Teams) and capitalize on the pent-up demand

created by the horizontal supply restriction, but without forgoing its monopoly control of all

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broadcast rights. In 1987, it developed a plan that prefigured the modern Sunday Ticket package:

market an encrypted package of all games that could be viewed by consumers who purchased a

decoder.

59. According to sports journalist Gregg Easterbrook, CBS opposed the idea, fearing

that the dilution of their ratings would decrease their advertising revenue, and this plan was not

implemented as originally conceived.

60. In December 1993, however, Fox outbid CBS for broadcast rights, removing an

important obstacle to the planned package. At the same time, the advent of direct-broadcast

satellite television service (“DBS”) made distribution of all games easy and inexpensive. Those

early DBS providers could carry a larger number of channels than contemporaneous cable

providers without running into capacity constraints. (Capacity constraints are no longer a

significant factor for either DBS or cable providers.)

61. For the 1994 season, the NFL bundled together a package of games that could be

sold nationwide, allowing the NFL and its Teams to offer a single, monopolized product

containing the various products they would otherwise sell individually. This package would

become the product known today as Sunday Ticket.

62. DirecTV, the second commercial DBS provider in America, also launched in

1994, just a few months before the NFL season began. It contracted with the NFL to license

Sunday Ticket exclusively, making it the only source for the vast majority of regular season NFL

games in any part of the country. Since then, DirecTV has successfully convinced the NFL to

continue licensing Sunday Ticket exclusively, even though the technological impediments to

carriage by cable providers or on the Internet have long since faded away.

Case 1:15-cv-08188 Document 1 Filed 10/16/15 Page 18 of 40

63. Even with CBS temporarily out of the picture,

the NFL still encountered

resistance from its other broadcast networks. Moreover, it could not create Sunday Ticket

without the networks’ agreement to provide their feeds of games to DirecTV. The networks

demanded concessions and limitations on Sunday Ticket in exchange. For example, Fox insisted

on and received a commitment that Sunday Ticket be capped at one million subscribers annually.

This cap has slightly increased over the years but, on information and belief, remains a

contractual obligation.

C. Current Broadcasting Agreements

64. Today, the NFL and its 32 Teams maintain the horizontal agreements that prevent

any Team from selling its games individually, restricting supply and immunizing the Teams from

the effects of horizontal competition.

65. Regular season NFL games are currently broadcast in two principal ways.

a. Over-the-Air and Cable Broadcasts

66. First, as they have done since 1987, the NFL and its Teams sell their pooled rights

to over-the-air and cable networks. Currently, they contract with five networks: the over-the-air

networks NBC, Fox, and CBS; the subscription network ESPN; and the NFL’s own subscription

network, NFL Network. When the NFL most recently negotiated these contracts, in 2011, it was

reported that the deals lasted at least 8 years and until 2022 in some cases, and totaled some $27

billion in licensing fees.

67. The Network Defendants produce broadcasts of each game to which they hold the

rights, such that one television broadcast is created for each regular-season or playoff game.

CBS resumed broadcasting NFL games in 1998.

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68. During the regular season, most games take place on Sunday afternoons at

approximately 1 p.m. or 4:25 p.m. Eastern time. These games are split between CBS and Fox,

with CBS holding the exclusive rights to broadcast American Football Conference (“AFC”)

games and Fox the exclusive rights to broadcast National Football Conference (“NFC”) games.

In most weeks, there are between eleven and thirteen Sunday afternoon games. In addition, the

NFL typically schedules one game on Sunday, Monday, and Thursday nights. These night games

are licensed exclusively to NBC, ESPN, and NFL Network, respectively, for national

distribution.

69. For the Sunday afternoon games, CBS and Fox, in consultation with the NFL,

determine which games will be broadcast in which locations. Typically, each network makes

only one game available in any given location at a time. Each week, one network has the rights

to air one game in each timeslot, while the other network may air a game only in one timeslot.

For example, in a given week, CBS would choose one AFC game to make available in a given

location at 1 p.m. and one to make available at 4:25 p.m. Fox would have the right to air NFC

games in only one timeslot in a week that CBS was permitted to show two games. On another

week, CBS’s and Fox’s roles would be reversed, with Fox broadcasting two games and CBS

broadcasting one. League rules further limit the games available in a market in which a team is

playing a Sunday afternoon game, such that under certain circumstances only one other game

will be available.

70. Thus, in any location in America, there are no more than two regular-season

games available on television at any given time—even though there may be as many as seven

games being played simultaneously, by fourteen teams. In total, no more than three Sunday

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afternoon games are typically shown in a given location, despite as many as thirteen games being

played on Sunday afternoon.

a. NFL Sunday Ticket

71. Second, the NFL licenses Sunday Ticket exclusively to DirecTV for United States

distribution, as it has done at all times since the 1994 season. Although the Sunday Ticket

licensing contract has repeatedly been up for renegotiation, DirecTV has consistently offered a

premium to ensure that it remains exclusive to DirecTV. Simultaneously, the NFL has sought to

restrict Sunday Ticket to DirecTV, rather than make it more broadly available—i.e., at a cheaper

price or to more consumers—to satisfy the Network Defendants’ concerns and ensure that each

participant in the scheme retains monopoly profits to the greatest extent possible.

72. The NFL and DirecTV signed their most recent Sunday Ticket contract in 2014,

reportedly guaranteeing DirecTV eight years of exclusivity for $12 billion in licensing fees.

73. Currently, in any given area, DirecTV makes the Network Defendants’ telecasts

of most games available nationwide to Sunday Ticket subscribers, but blacks out games that the

Network Defendants are broadcasting in each subscriber’s location. Those games are available

only through the particular Network Defendant’s own channel.

74. Beginning in 2010, DirecTV also made Sunday Ticket available over the Internet

to residents of apartment buildings in New York, Philadelphia, or San Francisco who could not

install DirecTV satellite dishes. Shortly after DirecTV’s merger with AT&T in August 2015,

DirecTV slightly expanded this plan, making Sunday Ticket available over the Internet to certain

other consumers who could not install DirecTV. Consumers who do not qualify have no

authorized means to view live regular season NFL games on the Internet, and all consumers are

required to purchase the package through DirecTV.

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D. The Challenged Agreements Harm Competition

1. The Agreements Restrict Output and Raise Prices

75. The NFL and its Teams’ agreement to pool broadcasts is a classic horizontal

supply restriction. Bedrock economic principles teach that a horizontal agreement by 32 market

participants not to compete, but rather to sell their products collectively, will reduce output, raise

prices, and harm consumers.

76. This harm is evident in many forms. First, the availability of football broadcasts

on standard over-the-air and cable channels is vastly lower than it would otherwise be. NFL

football has the highest ratings of all sports programs. Yet only two or three Sunday afternoon

games are available to fans. By contrast, NCAA football, whose similar restraints were found to

violate the antitrust laws by the Supreme Court, is now available on dozens of different networks

on Saturday afternoons, with no limit on the number of games aired at the same time.

77. Second, the output of NFL broadcasts, considered on a per-game basis, is half the

output of the other major American sports leagues.

In the NHL, NBA, and MLB, where teams

are allowed to negotiate with broadcasters, teams typically produce two broadcasts per game,

each with distinct characteristics appealing to different consumers. In the NFL, by contrast, the

NFL and the Network Defendants create just one broadcast for each game.

78. Unsurprisingly, these supply restrictions come with correspondingly astronomic

prices, just as antitrust economics predict. Sunday Ticket costs up to ten times as much as the

other major sports leagues’ comparable packages (and at a minimum, nearly twice as much),

despite containing far less content both on an absolute and a per-game basis. For the 2015

season, DirecTV and the NFL charge as much as $359 for a full season of Sunday Ticket to

On an absolute basis, the disparity is even greater, but this is because the NFL season has

roughly 10-20% as many games as the other leagues.

Case 1:15-cv-08188 Document 1 Filed 10/16/15 Page 22 of 40

individual subscribers, and anywhere from $1,458 to more than $120,000 for commercial

subscribers. Prices increase nearly every year; between the 2014 and 2015 seasons, for example,

DirecTV and the NFL increased prices roughly 11.5%.

79. But for the anticompetitive agreements, each Team would create its own

broadcasts and sell those broadcasts in a competitive marketplace. This would naturally force

prices down at the same time it increased output. A bundle of games, whether sold as Sunday

Ticket or in another form, would continue to be profitable enough that the Teams would have an

incentive to continue offering it—but its prices would necessarily decrease in the face of

nationwide competition from individual Teams.

80. The contrast between NFL radio broadcasting and NFL television broadcasting

illustrates this harm. NFL Teams negotiate individual radio broadcasting contracts, rather than

consolidating all broadcasting in the NFL itself. Each Team produces (or contracts with a third

party to produce) its own radio broadcast of its games, so that a fan of each Team in a game can

consume a broadcast catering to that fan base. As a result, there are twice as many NFL radio

broadcasts as there are television broadcasts. The Team or its radio partner licenses those

broadcasts to multiple radio stations—many of which broadcast the game free on the Internet

nationwide. Thus, despite there being less demand for radio broadcasts, the NFL and its Teams

produce more output and make it more broadly available—a disparity that can only be explained

by the anticompetitive effect of the horizontal restraint on television broadcasting.

81. The NFL and its Teams’ agreement to sell the bundled games through an

exclusive distributor significantly exacerbates the anticompetitive effect of the agreements. By

licensing their artificial, highly valuable monopoly to DirecTV exclusively—rather than offering

it through multiple distributors as they do outside the United States and as all other sports

Case 1:15-cv-08188 Document 1 Filed 10/16/15 Page 23 of 40

leagues do—they not only increase prices and restrict availability for Sunday Ticket, but they

distort competition among MVPDs and between MVPDs and the Internet. Indeed, in service to

this agreement to distribute exclusively, which is unique among major American sports leagues,

the NFL does not provide any means of online availability for many consumers, drastically

limiting output compared to the other leagues.

2. There Are No Procompetitive Benefits, and Any That Might Exist

Could Be Achieved through Less Restrictive Means

82. These output restrictions have no procompetitive benefits—and even if they did,

any such benefits could be achieved through less restrictive means. Even though other major

sports leagues engage in anticompetitive horizontal restrictions of their own, none has sought to

completely eliminate individual teams’ output—and yet none of them have any problems

broadcasting all or nearly all of their games. Indeed, as discussed above, the other leagues have

more per-game output.

83. Moreover, NFL broadcasting rights—even without the scheme to monopolize and

restrict them—are an extraordinarily valuable commodity. The Nielsen Company estimated that

the 2014 regular season alone reached 202.3 million unique viewers, representing 80 percent of

all television homes and 68% percent of all potential viewers in the United States.

Viewership

for NFL games regularly eclipses that of any other program on television. During the 2014

regular season, every one of the 20 most-watched programs in America was an NFL game, as

were 25 of the next 30. Indeed, for the past three years, an NFL game was the most-watched

program on television for each week of the NFL season. This trend shows no signs of abating.

For example, a preseason game between the Minnesota Vikings and the Pittsburgh Steelers on

On information and belief, the statistics in this paragraph do not include viewership

through Sunday Ticket—meaning that even these impressive statistics underestimate the demand

for football broadcasts.

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August 11, 2015 was the most-watched program in America for the entire week, according to the

Nielsen ratings service—despite being a preseason game, rather than a regular season game, and

between two relatively small-market teams. As Nielsen summarized earlier this year, “NFL fans

make every game a Super Bowl.”

84. Given this tremendous viewership, there can be no serious argument that NFL

Teams would have trouble obtaining distribution without their horizontal restraint. The supply

restriction has the effect and purpose of concentrating viewership in a limited number of

broadcasts, allowing the Network Defendants to charge higher fees for advertising and demand

greater affiliation or broadcast retransmission fees from cable and satellite providers. But even

though revenues—and prices to advertisers and consumers—would be lower without the

restraint, they would still be more than sufficient to incentivize Teams to broadcast their

individual games as broadly as possible, particularly giving the relatively low costs of

distribution.

85. Similarly, restrictions are not necessary to preserve attendance at games, as they

were thought to have been in the 1950s. Industry observers and participants widely believe the

notion that video broadcasts hurt attendance to be antiquated and wrong; rather, the consensus is

that they are complementary products that increase interest and thus increase attendance,

merchandise purchases, and other valuable forms of fan engagement. Indeed, many less popular

leagues, such as the Arena Football League, give their broadcasts away for free on the Internet in

the hopes of generating interest. The NFL itself has now abandoned all blackouts of non-sold-out

local games, having been the last major sports league to limit broadcasts to encourage ticket

sales.

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86. Even if the restrictions did protect game attendance, that protection is no longer

justified as it may have been in the 1950s. The NFL I court relied heavily on its findings that

“less than half the clubs over a period of years are likely to be financially successful” and that

“the very existence of the individual clubs” required “protection of home game attendance.” NFL

I, 116 F. Supp. at 323, 325.

Today, the average NFL Team is worth $2 billion, according to

Forbes, with even the least valuable team valued at $1.4 billion. There is no plausible risk that

any Teams would be driven out of business if required to license its lucrative broadcast rights

individually.

87. Nor are the restrictions necessary to foster competitive balance. Whatever

measures may be acceptable in pursuing the goal of competitive balance, they cannot justify

eliminating all broadcasting competition and thereby restricting supply, raising prices and

revenues. The NFL and its Teams engage in a variety of other measures to ensure competitive

balance, such as salary caps that are exempt from antitrust scrutiny under labor exemptions; there

is no need to monopolize the broadcasting market as well. If the NFL and its Teams were simply

interested in competitive balance, they could generate revenues through ordinary competitive

means and then engage in some permissible form of revenue sharing, or otherwise participate in

less restrictive agreements.

Even in 1953, this finding was at best debatable. It is true that 48 teams went out of

business in the 1920s and early 1930s, including such marginal and short-lived entrants as the

Duluth Eskimos and the Toledo Maroons. However, television broadcasting and the NFL’s

restriction of entry into the league largely put a stop to that competitive challenge. As of 1953,

only two teams had gone out of business in the fourteen years since television broadcasting of

football began. Despite the NFL’s predictions during the NFL I trial, no teams have gone out of

business since NFL I struck down part of the NFL’s broadcast restrictions.

Case 1:15-cv-08188 Document 1 Filed 10/16/15 Page 26 of 40

3. Examples from Other Leagues Confirm That Comparable

Agreements Harm Competition

88. Both empirical evidence and the opinions of sports teams themselves confirm that

restrictions such as these harm competition—and that eliminating them produces an explosion in

output.

89. The example of Division I college football is an instructive comparison. Before

1984, the NCAA limited the total number of televised intercollegiate football games and the

number of games that any one college could televise. It also prohibited colleges from

broadcasting through sources other than ABC and CBS.

90. Two universities sued the NCAA, leading the Supreme Court to find that the

NCAA’s plan violated Section One of the Sherman Act. After a full trial, the United States

District Court for the Western District of Oklahoma found that the NCAA was a “classic cartel”

that had “sought and achieved a price for their product which is, in most instances, artificially

high.” NCAA v. Bd. of Regents of Okla., 468 U,S, 85, 96 (1984) (quoting 546 F. Supp. 1276,

1300-01 (W.D. Okla. 1982)). The district court found the plan to constitute price-fixing, a group

boycott, and artificial limit on production. It rejected the NCAA’s proffered justifications that

competition would adversely affect gate attendance or harm competitive balance.

91. The United States Court of Appeals for the Tenth Circuit affirmed,

as did the

Supreme Court. The Supreme Court found the NCAA’s plan to be “a horizontal restraint” that

both “create[d] a limitation on output” and “constitut[ed] horizontal price fixing.” Id. at 99-100.

This created “a significant potential for anticompetitive effects”—a potential that “ha[d] been

realized.” Id. at 104-05. As the district court had found, “if member institutions were free to sell

television rights, many more games would be shown on television”; prices were not only inflated

The appellate court did remand to modify the district court’s injunctive decree.

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but “unresponsive to viewer demand and unrelated to the prices that would prevail in a

competitive market.” Id. at 105-06. The “anticompetitive consequences of this arrangement,” the

Supreme Court said, were “apparent.” Id. at 106. Nor were there “any procompetitive

efficiencies which enhanced the competitiveness of college football television rights; to the

contrary . . . NCAA football could be marketed just as effectively without the television plan.”

Id. at 114.

92. After the NCAA’s plan was abolished, the Supreme Court’s prediction that “many

more games would be shown on television” proved true. Today, Division I college football and

basketball are among the most heavily televised sports in the country. All four major broadcast

networks nationally televise college football games, as do at least three ESPN channels (ESPN,

ESPN 2, and ESPNU), Fox Sports 1, CBS Sports Network, and NBC Sports Network. Most

regional sports networks (“RSNs”) also carry college football, as do three regional Fox College

Sports Networks and various NCAA conference-created channels. Similarly, at least 10 networks

carry college basketball nationally, along with many RSNs and the Fox College Sports

Networks.

93. This example confirms the obvious: agreements to monopolize and restrict the

availability of sports broadcasts raise the prices of those broadcasts and reduce their output,

exactly as intended. It strongly suggests that, in the absence of the agreements challenged here,

teams would have no difficulty finding national distributors for their currently untelevised

games. Indeed, given the far higher popularity of professional football and the far lower number

of games, the most likely outcome would be that every team would find a national distributor for

every one of its games.

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94. Sports teams themselves have acknowledged these facts, when they have become

dissatisfied with the terms under which their league’s monopoly rents were shared. In addition to

the University of Oklahoma and the University of Georgia, professional hockey and basketball

teams have sued their leagues, alleging that their broadcasting restrictions unlawfully restrained

trade.

95. Madison Square Garden Company, (“MSG”) the owner of the New York Rangers

professional ice hockey club and two RSNs, sued the NHL in 2007, alleging that its television

and Internet restrictions—which, as noted above, do not eliminate all club broadcasts as the NFL

does—were anticompetitive and unlawful. See Madison Square Garden, L.P. v. Nat’l Hockey

League, No. 07-8455 (S.D.N.Y.). MSG alleged in its complaint that the NHL’s restraints

“reduced output, diminished product quality, diminished choice and suppressed price

competition,” and that “[t]here are no legitimate, procompetitive justifications for these

‘exclusive’ agreements and other competitive restraints, which have harmed consumers in

various ways.” After this Court denied the NHL’s motion to dismiss, MSG and the NHL settled

their lawsuit on a confidential basis, allowing the anticompetitive restraint to stay in place (and,

presumably, giving MSG a greater share of the bounty).

96. Similarly, in a bankruptcy adversary action brought by the Phoenix Coyotes

hockey club against the NHL, the Coyotes alleged that “[t]he NHL and its members have

conspired to create exclusive television and radio broadcast rights . . . thereby maintaining

monopoly power.” Coyotes Hockey LLC v. NHL, Av. No. 09-494 (Bankr. D. Ariz. June 5, 2009).

This claim was similarly resolved without upsetting the anticompetitive scheme, as the NHL

obtained ownership of the Coyotes through the bankruptcy.

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97. In basketball, too, at least one team has acknowledged the anticompetitive effect

of broadcasting restraints. The Chicago Bulls challenged NBA limitations on distribution on so-

called “superstations,” reducing the number of games shown nationwide. The Bulls took the

NBA to trial twice and proved the restraints’ unlawfulness both times.

As the United States

District Court for the Eastern District of Illinois found, the restraints “reduce availability and

competition in the hope of raising the price of the product in the future. Such a restraint is

unreasonable and therefore unlawful.” Chicago Prof’l Sports L.P. v. NBA, 754 F. Supp. 1336,

1364 (E.D. Ill. 1991), aff’d, 961 F.2d 667 (7th Cir. 1992).

98. Thus a natural experiment in college football, the views of multiple sports teams,

and the verdicts from multiple bench trials all support the same conclusion: sports leagues that

restrict their teams’ broadcasting rights unlawfully restrain trade.

E. The Network Defendants and DirecTV Have Participated in This

Anticompetitive Scheme

99. Although the principal agreements challenged here are the horizontal agreements

among the Teams, those agreements have been facilitated, encouraged, and expanded by the

Network Defendants and DirecTV.

100. The main purpose of the restrictions is to make rights more valuable to

broadcasters, thus allowing them to earn more money from the sale of NFL broadcasts. Networks

are able to charge more to advertisers and more to MVPDs (in the form of affiliation fees, in the

case of ESPN and the NFL Network; in the form of retransmission consent fees, in the case of

Fox, CBS, and NBC). They ensure that no more than six games will be broadcast on television in

Ultimately the NBA defeated the second suit, but on the basis of a “single entity” defense

that the Supreme Court definitively rejected in American Needle.

Case 1:15-cv-08188 Document 1 Filed 10/16/15 Page 30 of 40

any given week, cutting the competition that each broadcaster would face from fourteen or

fifteen games to five.

101. This effect is particularly pronounced for the Sunday afternoon games broadcast

by CBS and Fox. In a competitive market, up to seven games would be broadcast simultaneously

(which would still be significantly less than the number of college football games that are

typically broadcast at the same time). This would represent a massive increase in consumer

choice—but would give CBS and Fox direct competitors that would reduce their ratings and

revenue. By keeping those games off regular television and restricting them only to DirecTV

subscribers who are willing to pay for the supracompetitively priced bundle, the scheme gives

CBS and Fox an artificial duopoly over one of the most valuable commodities in all of

television.

102. The Network Defendants and DirecTV have paid more—and made clear to the

NFL that they will pay more—for that exclusivity. On information and belief, each of the

Network Defendants and DirecTV has insisted on contractual clauses guaranteeing that the

Teams will continue to sell their rights only through the NFL, putting the NFL at risk of facing

serious monetary consequences if they should end their scheme.

103. Similarly, the Network Defendants pressured the NFL not to market Sunday

Ticket or to limit its availability. As discussed above, CBS opposed the creation of Sunday

Ticket, and Fox demanded limits on the number of subscribers. These subscriber limits

effectively required the NFL and the Teams to ensure that Sunday Ticket would have high prices

and low availability.

104. Moreover, the participation of cable networks ESPN and NFL Network

exacerbates the anticompetitive harms wrought by the agreements. Because of the scheme to

Case 1:15-cv-08188 Document 1 Filed 10/16/15 Page 31 of 40

reduce competition, ESPN and NFL Network are able to charge inordinately large subscription

fees to MVPDs, which are then passed on to consumers. In part due to the exclusivity it has

purchased from the horizontal cartel, ESPN is the single most expensive cable channel in

America. Indeed, according to a 2014 Wall Street Journal analysis, ESPN cost $6.04 a month on

average, more than four times as much as the second-most expensive channel, TNT, which cost

just $1.48 a month. MVPDs’ robust profit margins suggest that much of this exorbitant price is

passed on to consumers.

105. Much like the Network Defendants, DirecTV requires the NFL and its Teams to

maintain their anticompetitive agreement, and has paid handsomely to ensure compliance.

Indeed, DirecTV has significantly expanded the agreement, preventing online distribution of live

games until recent years, and even today limiting online distribution primarily to individuals

unable to install DirecTV in their households. Because of DirecTV’s participation in the scheme,

the United States is one of the only countries in the world where NFL games are not offered

online to all consumers. Similarly, the NFL and its teams have licensed Sunday Ticket to more

than a dozen satellite and cable providers in Canada, which they would have done in the United

States as well but for DirecTV’s inducements and demands.

106. There are no procompetitive benefits to the exclusive distribution arrangement.

Exclusive distribution can sometimes promote inter-brand competition, but because the NFL is

the only provider of major-league professional football telecasts in the United States, there is no

relevant inter-brand competition.

F. Plaintiffs Have Suffered Antitrust Injury

107. Plaintiffs have been overcharged for live video presentations of regular season

NFL games.

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108. As subscribers to NFL Sunday Ticket, Plaintiffs have been charged

supracompetitive prices for live video presentations of regular season NFL games because of the

horizontal output restrictions and the participation of the Network Defendants and DirecTV in

limiting availability and increasing the price of the Sunday Ticket package.

109. As purchasers of MVPD service that includes NFL programming, Plaintiffs have

been charged supracompetitive prices for live video presentations of regular season NFL games

because of the horizontal output restrictions and the participation of the Network Defendants and

DirecTV in limiting competition among and availability of such presentations.

110. Plaintiffs have been injured by the unavailability of live video presentations of

regular season NFL games over the Internet, which they would consider as competitive

substitutes if they were made available by NFL Teams or the NFL. The horizontal output

restrictions and the participation of the Network Defendants and DirecTV in limiting competition

among and availability of such presentations have prevented such Internet distribution.

111. Plaintiffs have been injured by the Teams’ joint refusal to offer the vast majority

of live video presentations of regular season NFL games over the Internet, on free over-the-air

networks, or as part of any pay television service other than DirecTV.

CLASS ACTION ALLEGATIONS

112. Plaintiffs bring this action on behalf of themselves and as a class action under the

provisions of Rule 23(a), (b)(2), and (b)(3) of the Federal Rules of Civil Procedure on behalf of

all persons in the United States who purchased Sunday Ticket between June 17, 2011 and the

present, excluding Defendants and their present and former parents, subsidiaries, affiliates, and

Case 1:15-cv-08188 Document 1 Filed 10/16/15 Page 33 of 40

co-conspirators, as well as the District Court and any individuals required to be excluded under

28 U.S.C. § 455(b)(4)-(5).

113. This class is so numerous and geographically dispersed that joinder of all

members is impracticable. According to a 2013 Bloomberg analysis, more than 2 million people

subscribed to Sunday Ticket in the United States. The exact number and identity of all Class

members can be ascertained through Defendants’ records.

114. There are questions of law and fact common to the Class, including:

a. Whether the NFL and its Teams engaged in a contract, combination, or

conspiracy to reduce output and/or fix, raise, maintain or stabilize prices

of live video presentations of regular season NFL games by agreeing that

all video presentations would be licensed exclusively by the NFL;

b. Whether the Network Defendants and DirecTV participated in any such

contract, combination, or conspiracy;

c. The effect of Defendants’ agreements on the prices of Sunday Ticket in

the United States during the class period;

d. The effect of Defendants’ agreements on the retransmission consent and

affiliate fees charged by the Network Defendants to MVPDs;

e. The effect of Defendants’ agreements on the subscription fees charged by

MVPDs that carry the Network Defendants;

f. Whether per se, quick look, or rule of reason analysis is appropriate;

Although individuals or businesses who did not purchase Sunday Ticket during the Class

Period may also have valid claims, Plaintiffs do not seek to represent them in this action.

Case 1:15-cv-08188 Document 1 Filed 10/16/15 Page 34 of 40

g. Whether, if per se analysis is inappropriate, there are any procompetitive

benefits to the challenged agreements that could not be achieved by less

restrictive means;

h. whether the alleged conspiracy violated Section 1 of the Sherman Act, 15

U.S. C. § 1;

i. Whether the alleged agreements violated Section 2 of the Sherman Act, 15

U.S.C. § 2;

j. Whether the conduct of Defendants and their co-conspirators, as alleged in

this complaint, caused injury to the Plaintiffs and the other members of the

Class; and

k. The appropriate class-wide measure of damages.

115. Plaintiffs purchased Sunday Ticket for the 2015 season and previous seasons.

Their claims are typical of the claims of other Class members, and they are committed to fairly

and adequately protecting the interests of the Class.

116. Plaintiffs’ counsel are competent and experienced in the prosecution of antitrust

and class action litigation.

117. Given the high cost of establishing that the Defendants’ agreements violated the

antitrust laws (including, but not limited to, substantial expert witness costs and attorneys’ fees),

a class action is the only economically feasible means for any plaintiff to enforce his or her

statutory rights.

118. The prosecution of separate actions by individual members of the Class would

create a risk of inconsistent or varying adjudications, potentially establishing incompatible

standards of conduct for Defendants.

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119. The questions of law and fact common to the members of the Class predominate

over any questions affecting only individual members, including legal and factual issues relating

to liability and damages.

120. A class action is superior to other available methods for the fair and efficient

adjudication of this controversy. The Class is readily definable and is one for which Defendants

should possess purchase records making Class members readily ascertainable. Prosecution as a

class action will eliminate the possibility of repetitious litigation that is burdensome on both

Defendants and the judicial system. Treatment as a class action will permit a large number of

similarly situated persons to adjudicate their common claims in a single forum simultaneously,

efficiently, and without the duplication of effort and expense that numerous individual actions

would engender. This class action presents no difficulties in management that would preclude

maintenance as a class action.

CLAIMS FOR RELIEF

Count One—Violation of Section One of the Sherman Act

121. Plaintiffs incorporate by reference the allegations in the above paragraphs as if

fully set forth herein.

122. Defendants, by and through their officers, directors, employees, agents, or other

representatives, have entered into an unlawful agreement, combination, and conspiracy in

restraint of trade, in violation of 15 U.S.C. § 1. Specifically, Defendants agreed to restrain

competition in the licensing and distribution of live video presentations of regular season NFL

games, with the purpose, intent, and effect of restraining trade and commerce and increasing

prices paid by consumers and advertisers to distributors of live video presentations of regular

season NFL games.

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123. Defendants’ anticompetitive conduct injured class members by decreasing the

availability of live video presentations of regular season NFL games, decreasing choice among

game broadcasts and among distributors, and increasing the cost of accessing live video

presentations, including but not limited to increasing the price charged by DirecTV for Sunday

Ticket.

124. Defendants’ anticompetitive conduct harms competition and lacks any

procompetitive benefits; if any procompetitive benefits do exist, they can be achieved by less

restrictive means and do not outweigh the harm to competition.

Count Two—Violation of Section Two of the Sherman Act

125. Plaintiffs incorporate by reference the allegations in the above paragraphs as if

fully set forth herein.

126. All Defendants, by and through their officers, directors, employees, agents, or

other representatives, have unlawfully conspired to monopolize the market for live video

presentations of regular season NFL games, in violation of 15 U.S.C. § 2.

127. Specifically, the NFL and its Teams agreed to consolidate all licensing rights for

live video presentations of regular season NFL games into a single entity, with the purpose,

intent, and effect of monopolizing the market for licensing and increasing prices paid by

consumers and advertisers to distributors of live video presentations of regular season NFL

games (and thereby increasing prices paid by distributors for the rights to distribute such

presentations). These activities have gone beyond those which could be considered “legitimate

business activities” and are an abuse of market power. The Network Defendants and DirecTV

have conspired to sustain and retrench this monopoly by insisting on its continuation in contracts

with the NFL.

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128. Defendants, by and through their officers, directors, employees, agents, or other

representatives, have conspired to give DirecTV a monopoly in the distribution of live video

presentations of regular season NFL games, making it the only source for the vast majority of

NFL games in any given location, including as many as ten (of eleven to thirteen) Sunday

afternoon games. This has allowed DirecTV to charge supracompetitive prices and insulated the

Network Defendants from the competition that they would face in the presence of competitive,

non-monopolized distribution.

129. Defendants’ anticompetitive conduct injured class members by decreasing the

availability of live video presentations of regular season NFL games, decreasing choice among

game broadcasts and among distributors, and increasing the cost of accessing live video

presentations, including but not limited to increasing the price charged by DirecTV for Sunday

Ticket.

PRAYER FOR RELIEF

130. WHEREFORE, Plaintiffs, on behalf of themselves and a class of all others

similarly situated, request that the Court enter an order or judgment against Defendants including

the following:

a. Certification of the class described herein pursuant to Rule 23 of the

Federal Rules of Civil Procedure;

b. Appointment of Plaintiffs Trilogy Holding, LLC, New Lounge 4324,

LLC, Pedal Haus Brewery, LLC, Whiskey Rocks Tempe, LLC, and

Jonathan Frantz as Class Representatives and their counsel of record as

Class Counsel;

Case 1:15-cv-08188 Document 1 Filed 10/16/15 Page 38 of 40

c. Compensatory damages in an amount to be proven at trial and trebled

thereafter;

d. Pre-judgment and post-judgment interest as provided for by law or

allowed in equity;

e. A permanent injunction prohibiting Defendants from hereafter agreeing to

restrain competition in the licensing and broadcasting of live video

presentations of regular-season NFL games;

f. The costs of bringing this suit, including reasonable attorneys’ fees and

expenses;

g. Service awards to compensate Plaintiffs Trilogy Holding, LLC, New

Lounge 4324, LLC, Pedal Haus Brewery, LLC, Whiskey Rocks Tempe,

LLC, and Jonathan Frantz for their efforts in pursuit of this litigation; and

h. All other relief to which Plaintiffs Trilogy Holding, LLC, New Lounge

4324, LLC, Pedal Haus Brewery, LLC, Whiskey Rocks Tempe, LLC,

Jonathan Frantz, and the Class may be entitled at law or in equity.

JURY DEMAND

131. Pursuant to Federal Rule of Civil Procedure 38(b), Plaintiff demands a trial by

jury on all issues so triable.

Case 1:15-cv-08188 Document 1 Filed 10/16/15 Page 39 of 40

Dated: October 16, 2015

Respectfully submitted,

/s/ Jeffrey B. Dubner

Jeffrey B. Dubner (JD4545)

Richard A. Koffman (pro hac pending)

COHEN MILSTEIN SELLERS & TOLL

PLLC

1100 New York Ave. NW

Suite 500

Washington, DC 20005

Telephone: (202) 408

-4600

Facsimile: (202) 408

-4699

Daniel B. Rehns

(DR5506)

COHEN MILSTEIN SELLERS & TOLL

PLLC

88 Pine Street

14th Floor

New York, NY

10005

Telephone: (212) 838

-7797

Facsimile: (212 838

-7745

Howard Langer (

pro hac pending)

Edward Diver (

pro hac pending)

Peter Leckman (

pro hac pending)

LANGER, GROGAN & DIVER, P.C.

1717 Arch Street, Suite 4130

Philadelphia, PA 19103

Telephone: (215) 320

-5660

Facsimile: (215) 320-5703

Attorneys for

Plaintiffs and the Proposed

Class

Case 1:15-cv-08188 Document 1 Filed 10/16/15 Page 40 of 40