A federal judge in Los Angeles overturned the $4.7 billion verdict in the class action lawsuit filed by “Sunday Ticket” subscribers against the NFL. The judge, Philip Gutierrez, ruled that the methodologies used by two witnesses for the subscribers were flawed and should have been excluded from the case. The witnesses, Dr. Daniel Rascher and Dr. John Zona, played a significant role in the initial verdict awarded to the subscribers.
The lawsuit was brought by 2.4 million residential subscribers and 48,000 businesses who paid for the out-of-market Sunday afternoon games on a premium subscription service from 2011 to 2022. The jury had initially awarded $4.7 billion in damages to the subscribers after finding that the NFL violated antitrust laws in distributing the games.
In response to the judge’s decision, the NFL expressed gratitude for the ruling and emphasized that their media distribution model provides fans with various ways to follow the game. They highlighted the availability of local broadcasts of every game on free television and expressed excitement for the upcoming 2024 NFL season.
The jury had found the NFL liable for over $4.7 billion in damages, which could have been tripled under federal antitrust laws. However, Judge Gutierrez raised concerns about the irrationality of the damages awarded by the jury and the flawed economic models presented by the witnesses.
Rascher’s testimony, based on college football models, was deemed unsound by the judge. He failed to provide a clear explanation of how out-of-market telecasts would have been available without an additional subscription. Similarly, Zona’s models predicting increased consumer payments lacked a proper foundation and assumptions.
The jury’s damages calculation did not align with the models presented by the witnesses, leading Judge Gutierrez to question the methodology used. He criticized the jury for not following his instructions and creating their own calculations not tied to the evidence presented.
This case has seen previous rulings in favor of the NFL, with the lawsuit being dismissed in 2017 by Judge Beverly Reid O’Connell. However, the 9th Circuit Court of Appeals reinstated the case two years later, leading to the recent judgment by Judge Gutierrez.
It is expected that the plaintiffs will appeal the decision once again to the 9th Circuit. The overturning of the verdict has brought relief to the NFL, but the legal battle surrounding the “Sunday Ticket” distribution is likely to continue in the coming months.