Judge Dismisses Multi-Billion Dollar Verdict Against NFL

A California judge has overturned a $4.7 billion verdict against the National Football League (NFL) in a lawsuit that accused the league of overcharging subscribers for its Sunday Ticket game broadcasts over more than ten years. U.S. District Judge Philip Gutierrez, based in Los Angeles, sided with the NFL, which argued that the verdict resulted from a “runaway” jury and was unjustified.

NFL’s Response to the Ruling

The NFL expressed approval of the judge’s decision, stating, “We believe that the NFL’s media distribution model provides our fans with an array of options to follow the game they love.” This statement reflects the league’s position that its current system offers various choices for fans to engage with NFL games.

Lack of Response from Subscribers’ Attorneys

Attorneys representing the subscribers have not yet commented on the ruling. The lawsuit centered around the claim that Sunday Ticket, the only way for NFL fans to watch out-of-market games, had inflated prices. Subscribers alleged that this pricing strategy was designed to limit subscriptions and protect the fees broadcast networks paid for airing games in local markets.

Judge’s Decision Based on Evidence

In his 16-page order, Judge Gutierrez dismissed the testimony of two crucial witnesses for the subscribers. He stated that the jury’s damages verdict lacked support from the evidence, highlighting numerous flaws in the case that prevented it from proceeding. “Plaintiffs failed to provide evidence from which a reasonable jury could make a finding of injury and an award of actual damages,” Gutierrez wrote.

Potential for Appeal

The court’s ruling, which grants judgment in favor of the NFL, can be appealed to the 9th U.S. Circuit Court of Appeals in San Francisco. A Los Angeles federal jury had previously determined on June 27 that the NFL restricted the availability of Sunday Ticket, allowing DirecTV, its former sole distributor, to charge artificially high prices. DirecTV itself was not on trial.

Jury’s Initial Damages Award

The jury’s initial award amounted to $4.6 billion based on 24.1 million residential subscriptions over a 12-year class period, alongside $96.9 million for approximately 506,780 commercial subscriptions used by bars and restaurants. The NFL labeled the damages amount as “nonsensical,” arguing that the evidence presented did not support the jury’s conclusions.

Dispute Over Jury’s Reasoning

The subscribers countered the NFL’s position, claiming that the league’s arguments were based on “pure conjecture” regarding the jury’s reasoning. They maintained that no evidence showed the jurors considered evidence they were instructed to disregard. Under U.S. antitrust law, damages awards can be tripled, potentially increasing the verdict’s value to $14 billion if upheld.