Judge Overturns Massive $4.7 Billion Verdict Against NFL Over 'Sunday Ticket' Antitrust Claims

Thứ sáu, 02/08/2024 | 13:42 (GMT+7)

A California judge threw out a jury verdict ordering the NFL to pay more than $4.7 billion for anti-trust violations surrounding its “Sunday Ticket” package, which lets fans watch games outside of their home markets but required them to buy access to a bundle of games to do so.

Judge Overturns Massive $4.7 Billion Verdict Against NFL Over 'Sunday Ticket' Antitrust Claims

Judge Overturns $4.7 Billion Verdict Against NFL in 'Sunday Ticket' Antitrust Case

A significant legal battle involving the NFL and its "Sunday Ticket" package reached a pivotal moment on Thursday when a California judge overturned a jury's $4.7 billion verdict against the league. The case, initially filed in 2015, accused the NFL of anti-trust violations, alleging that the league's package forced fans to buy a bundle of out-of-market games, thereby restricting consumer choice and inflating prices.

Background of the Case

The lawsuit was brought by plaintiffs who argued that the NFL’s "Sunday Ticket" package unfairly monopolized out-of-market games, compelling customers who wished to follow specific teams to purchase the entire bundle of games rather than allowing them to choose individual matches. The plaintiffs contended that this practice was a violation of anti-trust laws, designed to create a more lucrative monopoly for the NFL at the expense of consumer choice and fair competition.

A detail view of the NFL shield logo painted on the field before the NFL Super Bowl LVIII football game between the Kansas City Chiefs and San Francisco 49ers at Allegiant Stadium on February 11, 2024 in Las Vegas, Nevada
A detail view of the NFL shield logo painted on the field before the NFL Super Bowl LVIII football game between the Kansas City Chiefs and San Francisco 49ers at Allegiant Stadium on February 11, 2024 in Las Vegas, Nevada

The Ruling

U.S. District Judge Philip Gutierrez, in his ruling, found issues with the methodologies used by the plaintiffs' expert witnesses, Dr. Daniel Rascher and Dr. Roger Noll. The judge stated that their testimonies were based on flawed methodologies, rendering them inadmissible. Without these testimonies, the plaintiffs could not substantiate their claims of class-wide injury and damages.

“The Court agrees that Dr. Rascher’s and Dr. Noll’s testimonies based on their flawed methodologies should be excluded. And because there was no other support for the class-wide injury and damages elements of Plaintiffs’… claims, judgment as a matter of law for the Defendants is appropriate,” Judge Gutierrez wrote in the court filing.

Implications of the Verdict

Had the jury's verdict been upheld, the NFL would have faced a tripled penalty under anti-trust law, amounting to $14.1 billion in damages. The plaintiffs had argued that each NFL team should independently offer their games at competitive prices, which would have provided a more affordable and fair option for consumers compared to the bundled "Sunday Ticket" package.

NFL’s Response

In a statement following the judge’s ruling, the NFL expressed relief and reiterated its commitment to providing fans with diverse viewing options. The league emphasized that its media distribution model includes local broadcasts of every single game on free over-the-air television, offering fans various ways to follow their favorite teams.

The ruling marks a significant victory for the NFL, potentially setting a precedent for how sports leagues package and sell their broadcasting rights. The case underscores the ongoing debate over consumer rights and fair competition in the realm of sports broadcasting.