Judge Overturns $4.7 Billion Verdict Against NFL
The substantial $4.7 billion verdict rendered against the National Football League (NFL) for allegedly colluding to inflate prices for its Sunday Ticket television package was overturned late Thursday by a federal judge. The ruling disqualified key expert testimony that had been utilized by the jury to assess damages in the case.
U.S. District Judge Philip Gutierrez, based in Los Angeles, issued his decision just a day after NFL lawyers requested the exclusion of testimony from pivotal witnesses representing thousands of customers who purchased the Sunday Ticket package. This season-long offering provided fans with access to all out-of-town NFL games, originally sold by DirecTV.
The jury’s verdict, delivered five weeks prior, posed a significant threat to the NFL’s business model of exclusively selling television packages to broadcasters. In his detailed 16-page ruling, Judge Gutierrez criticized the plaintiffs’ two economic experts, stating that their methodology was fundamentally flawed in demonstrating that the NFL had overcharged Sunday Ticket customers.
According to the judge, the jury’s damage calculations had to be dismissed since they relied heavily on the questionable testimony of these experts, which included dubious comparisons to college game broadcasts and unfounded conjectures about how the NFL could sell games individually. Judge Gutierrez articulated his concerns, stating, “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 had failed to adhere to his instructions regarding the calculation of damages. In antitrust cases like this, damages are typically tripled, which could have resulted in a staggering $14.1 billion verdict against the league.
In response to 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.”
Attempts to reach Bill Carmody, the attorney representing the plaintiffs, were unsuccessful as calls and text messages went unanswered.
Prior to the judge’s decision, the NFL had indicated its readiness to appeal the jury’s verdict. The plaintiffs now have the option to appeal this latest ruling to the U.S. Court of Appeals for the Ninth Circuit.
The month-long trial featured notable testimonies from high-profile figures, including NFL Commissioner Roger Goodell, Dallas Cowboys owner Jerry Jones, and Sean McManus, who recently retired as the chairman of CBS Sports.
In a significant shift, last season, the NFL concluded its long-standing partnership with DirecTV and sold the rights to the Sunday Ticket package to YouTube for an estimated $2.5 billion annually.
