US judge rules against classwide damages in sports blackout case

A federal judge has ruled US sports fans accusing Major League Baseball, the National Hockey League and broadcasters of illegally restricting their ability to watch their favourite teams on television cannot claim damages as a class.

Reuters said U.S. District Judge Shira Scheindlin said fans could still pursue class action claims that the defendants committed antitrust violations. However, the news agency said the verdict reduces the financial exposure of pro leagues, teams and broadcasters in the legal battle over how to broadcast sports programming, and how much to charge.

Two lawsuits brought forward by fans included MLB, NHL; media company Comcast; satellite television provider DirecTV; and regional network operators such as Madison Square Garden Co and Yes Network.

Teams involved included MLB’s New York Yankees; all New York-area NHL teams; the Chicago Cubs, White Sox and Blackhawks; and teams in Denver, Philadelphia, Pittsburgh, San Francisco, Seattle, among others.

The lawsuits argued that ‘blackouts’ were used to limit broadcasts of games outside teams' home markets. Plaintiffs claimed that this policy forced them to buy expensive television packages featuring games they did not want to watch, as opposed to a cheaper ‘a la carte’ option to follow a certain team’s contests.

Scheindlin said MLB and NHL fans could sue as a group to address the “dearth of choice” they now face. “Every class member, as a consumer in the market for baseball or hockey broadcasting, has been deprived of an option – a la carte channels – that would have been available absent the territorial restraints,” she wrote.

However, Scheindlin also said classwide damages could not be awarded as there was not enough evidence that all viewers were harmed.

Jonathan Schiller, a lawyer for the New York Yankees, told Reuters: “Striking damages from the class action is welcome to the Yankees. It now becomes an injunction case.”