Antitrust Law Daily Wrap Up, ANTITRUST—S.D.N.Y.: NHL, DIRECTV, Comcast settle hockey fans’ unlawful bundling claims, (Jun 17, 2015)

By Greg Hammond, J.D.

A class action settlement between consumers and the National Hockey League (NHL), DIRECTV, and Comcast has been preliminarily approved by the federal district court in New York City. The agreement settles claims that the NHL, DIRECTV, Comcast, and others conspired, by way of black-out or non-compete agreements, requiring consumers to purchase all “out-of-market” hockey or baseball games, even if they were only interested in viewing a particular game or games of one particular team located outside of their local markets (Laumann v. National Hockey League, June 15, 2015, Scheindlin, S.).

The settlement, according to plaintiffs’ memorandum in support of their motion for preliminary approval, will increase consumer choice and lower prices. Specifically, the NHL will offer an unbundled Game Center Live Internet package for five years, allowing consumers to purchase single-team packages for a price that is at least 20 percent below the price of the bundled package. Consumers consequently will be able, “for the first time in any major-league sport in the United States,” to choose between a season-long package of an individual team from outside their local markets or to purchase the league-wide out-of-market bundle.

The NHL also has agreed to discount early-bird, renewal, and full season prices for the 2015-2016 Game Center Live Internet package season by 17.25 percent over the prior year’s prices. Additionally, Comcast and DIRECTV will provide three weeks of free access to NHL Center Ice for their subscribers for the next two seasons, reducing the package price by 12.5 percent. The settlement also allows the plaintiffs to seek up to $6.5 million in attorney fees and costs, and each named plaintiff will seek service payments of $10,000 each.

The court granted preliminary approval, finding that the settlement agreement is the product of arm’s length negotiation by experienced counsel; is fair, reasonable, and adequate; is in the best interests of the class; and is within the range of possible approval. A class consequently was certified, including all individuals in the United States who purchased television service from DIRECTV and/or Comcast, or their subsidiaries, which included Center Ice, and/or who purchased NHL GameCenter Live from the NHL or its subsidiaries, between March 12, 2008, and June 10, 2015.

The proposed settlement has no effect on Garber v. Major League Baseball, which was previously consolidated with Laumann v. National Hockey League. A fairness hearing has been scheduled for August 31, 2015.

The case number is 12-cv-1817 (SAS).

Attorneys: Edward Diver (Langer, Grogan & Diver, P.e.) for Plaintiffs. Shepard Goldfein (Skadden, Arps, Slate, Meagher & Flom LLP) for National Hockey League. Andrew E. Paris (Alston & Bird LLP) for DIRECTV. Arthur J. Burke (Davis Polk & Wardwell LLP) for Comcast Corp.

Companies: National Hockey League; DIRECTV; Comcast Corp.

Cases: Antitrust NewYorkNews