NHL and Subscribers Reach Antitrust Class Action Settlement

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The National Hockey League reached a class action settlement with television subscribers who alleged that they were overcharged for out-of-market hockey games.

NHL has agreed to allow subscribers to watch out-of-market hockey games for less and charge less for team-specific subscription packages as well. The class action settlement amounts to price cuts as well as a variety of subscription options.

However, the hockey league will not make any additional fundamental changes to the prime issue in the NHL class action lawsuit, which is the so-called territorial exclusivity.

However, in the motion for preliminary approval of the NHL class action settlement, the Class Members said that the deal will give all subscribers more choices and better prices.

“The Agreement provides relief for Class members and the broader public through increased consumer choice and lower prices,” the Class Members explain.

“The NHL will offer an unbundled Game Center Live Internet package (GCL) for the next five years — allowing for the purchase of single-team packages for a price at least twenty percent below the price of the bundled package,” they write.

“For the first time in any major-league sport in the United States, consumers will be able to choose between a season-long package of an individual team from outside their local markets, or they can choose to purchase the league-wide out-of-market bundle,” the NHL class action settlement says.

“For both packages, the league’s territorial structure will otherwise remain unchanged,” the settlement adds.

The changes will begin with the 2015-2016 season.

“The NHL will discount early-bird, renewal and full season prices by 17.25 percent over the prior year’s prices,” the National Hockey League class action settlement says.

“As a result of this and the discounted single team stream, a fan of a particular team who presently pays $159 for a full season package (at the discounted ‘early bird’ price) will be able obtain a single team stream of his favorite team for approximately $105,” according to the terms of the proposed settlement.

“In addition, Comcast and DirecTV will provide three weeks of free access to NHL Center Ice for their subscribers for the next two seasons, thereby reducing the package price by 12.5 percent,” it adds.

The Class Members said that “the parties believe that the agreement is fair, reasonable, and adequate,” and the benefits of this settlement will be implemented immediately upon approval by the New York federal judge.

In addition, “NHL has agreed to implement a significant component of the relief — the unbundled packages, — in this coming season if final approval is granted by Sept. 15, even if objector appeals are pending.”

For this reason, the Class Members are asking that “the court expedite consideration of this motion so that Class Members can receive notice and the heart of the settlement can be implemented in advance of the 2015-2016 NHL season,” the motion for approval of the class action settlement adds.

Major League Baseball was hit with a similar antitrust class action lawsuit over similar “territorial exclusive” allegations, but no settlement has been reached.

The class action lawsuits allege that NHL, MLB, Comcast Corp. and DirecTV had agreements that live sporting events would be subject to a “black out” so that local television networks wouldn’t have to face competition. The sports fans alleged that it meant that they were left with having to pay excessive prices by having to buy both online and TV packages in order to watch live games.

The plaintiffs are represented by Edward A. Diver, Howard I. Langer and Peter E. Leckman of Langer Grogan & Diver PC, Michael Morris Buchman and John A. Ioannou of Motley Rice LLC, Kevin M. Costello and Gary E. Klein of Klein Kavanagh Costello LLP, Marc I. Gross and Adam G. Kurtz of Pomerantz LLP, Robert LaRocca of Kohn Swift & Graf PC, Michael J. Boni and Joshua D. Snyder of Boni & Zack LLC, Robert LaRocca of Kohn Swift & Graf PC, and J. Douglas Richards and Jeffrey Dubner of Cohen Milstein Sellers & Toll PLLC.

The NHL is represented by Shepard Goldfein, James A. Keyte, Paul M. Eckles and Matthew M. Martino of Skadden Arps Slate Meagher & Flom LLP.

DirecTV is represented by Andrew E. Paris, Louis A. Karasik and Stephanie A. Jones ofAlston & Bird LLP. Comcast is represented by Arthur J. Burke and James W. Haldin ofDavis Polk & Wardwell LLP.

MLB is represented by Bradley Ruskin, Jennifer Scullion and Colin Kass of Proskauer Rose LLP, Beth A. Wilkinson and Samantha P. Bateman of Paul Weiss Rifkind Wharton & Garrison LLP, and Thomas J. Ostertag from the Office of the Commissioner of Baseball.

The NHL Class Action Lawsuit is Thomas Laumann et al. v. National Hockey League et al., Case No. 1:12-cv-01817, in the U.S. District Court for the Southern District of New York.

The MLB Class Action Lawsuit is Marc Lerner et al. v. Office of the Commissioner of Baseball et al., Case No. 1:12-cv-03704, in the U.S. District Court for the Southern District of New York.

UPDATE: On June 15, 2015, a New York federal judge preliminarily approved the NHL broadcast monopoly class action settlement.