Judge Throws Out $4.7 Billion NFL "Sunday Ticket" Verdict
A California judge has thrown out a $4.7 billion jury verdict against the NFL over claims it overcharged subscribers for its "Sunday Ticket" game telecasts. The ruling by U.S. District Judge Philip Gutierrez follows the NFL's argument that the verdict was unjustified and resulted from a "runaway" jury. The NFL welcomed the judge's decision, stating that their media distribution model offers fans various options to follow their favourite games.
The lawsuit, which dates back to 2015, was brought by subscribers who alleged that "Sunday Ticket" prices were inflated to limit subscriptions and protect distribution rights fees paid by broadcast networks for local games. The subscribers claimed the NFL's practice of offering out-of-market games exclusively through the "Sunday Ticket" package forced customers to pay more than necessary.
Judge Gutierrez Critisises Two Key Witness Testimonies
Judge Gutierrez found several defects in the case, particularly criticising the testimonies of two key witnesses for the subscribers. He stated, "Plaintiffs failed to provide evidence from which a reasonable jury could make a finding of injury and an award of actual damages." The judge noted that the jury's damages calculation was unsupported by the evidence and resembled "guesswork or speculation."
NFL State Jury Damage Calculation Is Nonsensical
The jury had awarded $4.6 billion based on 24.1 million residential subscriptions over a 12-year period, and $96.9 million for about 506,780 commercial subscriptions for bars and restaurants.
The jury used the 2021 list price of about $294 and subtracted $102.74, the average price paid by subscribers, to calculate an "overcharge" of $191.26 per subscriber, which they multiplied by the number of subscribers to arrive at the damages amount.
The NFL argued that the damages amount was "nonsensical" and based on flawed methodologies. They also stated that their media distribution model remains one of the most fan-friendly in sports, offering all games on free over-the-air television in addition to the "Sunday Ticket" package. The plaintiffs, however, contended that the NFL's practices restricted competition and forced fans to pay higher prices.
The case's nature as an antitrust matter meant that the initial $4.7 billion verdict could have been tripled to $14.1 billion under federal antitrust laws. The NFL had planned to appeal the verdict, which would have gone to the 9th Circuit Court of Appeals and possibly the Supreme Court.
