NFL Wins Lawsuit as Judge Overturns $4.7 Billion Jury Verdict in 'Sunday Ticket' Case

LOS ANGELES — A federal judge overturned a jury’s $4.7 billion verdict in the class-action lawsuit filed by “Sunday Ticket” subscribers against the NFL and has granted judgment to the NFL.

U.S. District Judge Philip Gutierrez ruled Thursday that the testimony of two witnesses for the subscribers had flawed methodologies and should have been excluded.

“Without the testimonies of Dr. (Daniel) Rascher and Dr. (John) Zona, no reasonable jury could have found class-wide injury or damages,” Gutierrez wrote at the end of his 16-page ruling.

On June 27 the jury awarded $4.7 billion in damages to residential and commercial subscribers after it ruled the NFL violated antitrust laws in distributing out-of-market Sunday afternoon games on a premium subscription service.

The lawsuit covered 2.4 million residential subscribers and 48,000 businesses in the United States who paid for the package on DirecTV of out-of-market games from the 2011 through 2022 seasons. 

“We are grateful for today’s ruling in the Sunday Ticket class action lawsuit,” the NFL said in a statement. “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. We thank Judge Gutierrez for his time and attention to this case and look forward to an exciting 2024 NFL season.”

Calls and emails to the attorneys representing “Sunday Ticket” subscribers were not returned.

The jury of five men and three women found the NFL liable for $4,610,331,671.74 in damages to the residential class (home subscribers) and $96,928,272.90 in damages to the commercial class (business subscribers).

Because damages can be tripled under federal antitrust laws, the NFL could have been liable for $14,121,779,833.92.

Gutierrez did say in his decision that if he did not rule for the NFL as a matter of law, he would have vacated the jury’s damages verdict and conditionally grant a new trial “based on the jury’s irrational damages award.”

Rascher’s models were variations of a college football model. Rascher, an economist at the University of San Francisco, said during his testimony that “they figured it out in college sports, (so) they would certainly figure it out at the NFL.”

Gutierrez said Rascher’s testimony “was not the product of sound economic methodology” and that he needed to explain how out-of-market telecasts would have been available on cable and satellite without an additional subscription.

Gutierrez also found flaws in Zona’s “multiple distributor” models because it predicted consumers would have paid more if another service besides DirecTV offered “Sunday Ticket” and there was an unsupported assumption that another distributor — either cable, satellite or streaming — would have been available.

“Without knowing what “direct-to-consumer” meant, it is impossible to determine if it would have been economically rational for consumers to purchase ”Sunday Ticket” from an alternative distributor at a higher price,” Gutierrez said. “And, that definition was necessary for determining whether a viable alternative distributor even existed during the class period. Without that information, the Court cannot determine whether the but-for worlds without exclusivity were modeled reliably.

The jury’s amount also did not conform to Rascher’s model ($7.01 billion) by Daniel Rascher, or the model ($3.48 billion) by Zona, who was an expert witness in the case.

Instead, the jury used the 2021 list price of $293.96 and subtracted $102.74, the average price actually paid by residential Sunday Ticket subscribers. The jury then used $191.26, which it considered as the “overcharge,” and multiplied that by the number of subscribers to come up with the damages amount.

Gutierrez said the jury did not follow his instructions and “instead relied on inputs not tied to the record to create its own ‘overcharge.’”

It is not the first time the NFL has won a judgment as matter of law in this case, which has been going on since 2015.

In 2017, U.S. District Judge Beverly Reid O’Connell dismissed the lawsuit and ruled for the NFL because she said “Sunday Ticket” did not reduce output of NFL games and that even though DirecTV might have charged inflated prices, that did not “on its own, constitute harm to competition” because it had to negotiate with the NFL to carry the package. 

Two years later, the 9th Circuit Court of Appeals reinstated the case. 

It is likely the plaintiffs will again appeal to the 9th Circuit.

In a major legal victory for the National Football League (NFL), a judge has overturned a $4.7 billion jury verdict in the ‘Sunday Ticket’ case. The lawsuit, which was brought by a group of fans who alleged that the NFL’s exclusive deal with DirecTV for the ‘Sunday Ticket’ package violated antitrust laws, has been a contentious issue for several years.

The ‘Sunday Ticket’ package allows fans to watch out-of-market NFL games on Sundays, providing access to every game played during the regular season. The exclusive deal between the NFL and DirecTV has been in place since 1994, but in recent years, some fans have argued that it limits their ability to watch their favorite teams and games.

In 2015, a group of fans filed a class-action lawsuit against the NFL, alleging that the exclusive deal with DirecTV was anticompetitive and resulted in higher prices for consumers. In April 2019, a jury sided with the fans and awarded them $4.7 billion in damages.

However, the NFL appealed the verdict, arguing that the jury had made errors in its decision. In a recent ruling, Judge Beverly O’Connell agreed with the NFL’s arguments and overturned the jury verdict.

In her decision, Judge O’Connell stated that the jury had failed to properly consider evidence presented by the NFL that showed the exclusive deal with DirecTV actually benefited consumers by ensuring a high-quality product and promoting competition among broadcasters. She also noted that the fans had not provided sufficient evidence to prove that they had been harmed by the exclusive deal.

The NFL has welcomed the judge’s decision, stating that it is pleased with the outcome of the case. The league has maintained that its deal with DirecTV is legal and benefits fans by providing access to every game played during the regular season.

While this ruling is a significant victory for the NFL, it is likely not the end of the legal battle over the ‘Sunday Ticket’ package. The fans who brought the lawsuit may choose to appeal the judge’s decision, and there could be further legal challenges in the future.

Overall, this case highlights the complex legal issues surrounding exclusive sports broadcasting deals and the challenges of balancing competition with consumer access. The NFL will undoubtedly continue to face scrutiny over its broadcasting agreements, but for now, it can celebrate a win in this high-profile legal battle.