Federal Judge Overturns $4.7 Billion Verdict Against NFL in Sunday Ticket Case

Federal Judge Overturns $4.7 Billion Verdict Against NFL

A federal judge has overturned a staggering $4.7 billion verdict against the National Football League (NFL) concerning allegations of price collusion for its Sunday Ticket television package. The ruling, delivered late Thursday by Judge Philip Gutierrez of the U.S. District Court in Los Angeles, disqualified the expert testimony that had been pivotal in the jury’s determination of damages.

This significant decision came just a day after the NFL’s legal team requested the exclusion of testimony from key economic witnesses representing thousands of consumers who purchased the Sunday Ticket—a season-long package providing access to all out-of-town games, previously offered by DirecTV.

The jury’s verdict, delivered five weeks prior, posed a serious threat to the NFL’s long-standing strategy of selling exclusive television rights to broadcasters. In his 16-page ruling, Judge Gutierrez highlighted the flawed methodology utilized by the plaintiffs’ two economic experts, who aimed to establish that the league had unjustly charged customers for the Sunday Ticket.

According to the judge, the jury’s calculations of damages were fundamentally flawed as they relied on the experts’ testimony, which included dubious comparisons to college game broadcasts and speculative assertions about the NFL’s potential individual game sales. Judge Gutierrez stated, “The court finds that the jury’s damages awards were not based on the ‘evidence and reasonable inferences’ but instead were more akin to ‘guesswork or speculation.’”

Moreover, the judge pointed out that the jury failed to adhere to his instructions regarding the calculation of damages. In antitrust cases, such as this one, damages are typically tripled, which could have resulted in a staggering $14.1 billion verdict against the league.

In a statement following the ruling, the NFL expressed its gratitude, stating, “We are grateful for today’s ruling in the Sunday Ticket class action lawsuit. We believe that the NFL’s media distribution model provides our fans with an array of options to follow the game they love, including local broadcasts of every single game on free over-the-air television.”

Efforts to reach Bill Carmody, the attorney representing the plaintiffs, were unsuccessful as calls and messages went unanswered. Prior to the judge’s decision, the NFL indicated its readiness to appeal the jury’s verdict. The plaintiffs, on the other hand, may have the option to appeal this latest decision to the U.S. Court of Appeals for the Ninth Circuit.

The month-long trial featured notable testimonies from prominent figures, including NFL Commissioner Roger Goodell, Jerry Jones, owner of the Dallas Cowboys, and Sean McManus, who recently stepped down as the chairman of CBS Sports. In a significant shift, the NFL concluded its partnership with DirecTV last season, subsequently selling the rights to the Sunday Ticket package to YouTube for an impressive sum of up to $2.5 billion annually.