NFL Wins Appeal, $4.7 Billion 'Sunday Ticket' Verdict Tossed

In a surprising turn of events for football fans, a U.S. judge in California has overturned a $4.7 billion ruling against the NFL that stemmed from a lawsuit accusing the NFL of overcharging subscribers for its Sunday Ticket game telecasts for over a decade.

The ruling by Los Angeles-based U.S. District Judge Philip Gutierrez followed arguments from the NFL that the verdict was the result of a "runaway" jury. In his 16-page order, Gutierrez dismissed the testimony from two key witnesses for the subscribers and concluded that the jury's damages verdict was unsupported by evidence, citing too many defects in the case for it to proceed, Reuters reports.

Lawsuit accused NFL of monopolizing football broadcasts

The class action lawsuit, filed in 2015 by a San Francisco sports bar, focused on the NFL's exclusive agreement with DirecTV to offer the "Sunday Ticket" package from 1994 to 2022. Football fans argued the agreement between the two companies resulted in exclusivity that limited competition and inflated prices. 

While the case was dismissed in 2017, the 9th Circuit Court reinstated it in 2019 and Gutierrez allowed it to proceed as a class action lawsuit, leading to the June 6 trial and subsequent verdict. 

Sports economist Daniel Rascher testified that partnering with a cable provider could have expanded the reach to 90 million potential customers, compared to DirecTV's 13 million subscribers. Lawyers also argued the NFL colluded with CBS and Fox to restrict competition and protect their Sunday afternoon broadcast ratings.

Judge finds insufficient evidence to support jury's verdict

The jury awarded $4.6 billion based on residential subscriptions and $96.9 million for commercial subscriptions, totaling $14 billion under federal antitrust law due to triple damages. 

The NFL responded by labeling the damages "nonsensical" and denied overcharging subscribers. The organization warned that upholding the verdict could disrupt the entire sports broadcasting industry and invite legal challenges against similar out-of-market packages by other leagues. It argued that "Sunday Ticket" is a premium product for out-of-market fans, reflecting its value. They emphasized that local market games are available for free over-the-air broadcasts.

Subscribers fired back, saying the NFL’s claims were "pure conjecture" and lacked evidence that jurors relied on excluded evidence. However, Judge Gutierrez found that plaintiffs "failed to provide evidence from which a reasonable jury could make a finding of injury and an award of actual damages."

The NFL welcomed the ruling, stating, "we believe that the NFL's media distribution model provides our fans with an array of options to follow the game they love." 

The football fans can appeal the court’s decision to the San Francisco-based 9th U.S. Circuit Court of Appeals.

NFL faces other legal battles amid 'Sunday Ticket' victory

While the “Sunday Ticket” debacle has been one of the largest legal actions the NFL has faced in recent years, it isn’t the only one. The NFL Pro Football Hall of Fame settled a lawsuit over the cancellation of a 2016 preseason game due to field conditions, setting aside $750,000 for ticket compensation. 

Additionally, the NFL and Rams owner Stan Kroenke agreed to a $790 million settlement with St. Louis over the team's relocation to Los Angeles. Meanwhile, coach Brian Flores continues his lawsuit against the NFL, alleging racially discriminatory hiring practices.

Case Details

• Lawsuit: In re: National Football League’s “Sunday Ticket” Antitrust Litigation
• Case Number: 2:15-mdl-02668
• Court: U.S. District Court for the Central District of California

Plaintiffs' Attorneys

• Marc M. Seltzer, Kalpana Srinivasan, Amanda Bonn, William C. Carmody, Seth Ard, Tyler Finn and Ian M. Gore (Susman Godfrey LLP)
• Scott Martin, Sathya S. Gosselin, Christopher L. Lebsock, Samuel Maida and Farhad Mirzadeh (Hausfeld LLP)
• Howard Langer, Edward Diver, Peter Leckman and Kevin Trainer (Langer Grogan & Diver PC)

What are your thoughts on the judge's decision to overturn the $4.7 billion verdict against the NFL? Do you believe this ruling was fair to "Sunday Ticket" subscribers? Tell us in the comments.