Los Angeles — A significant legal verdict against the National Football League, which initially ordered them to pay $4.7 billion over their Sunday Ticket game-broadcast package pricing, was overturned by a federal judge. The judge ruled that a Los Angeles jury improperly calculated the damages, dealing a blow to claims of the league’s anticompetitive conduct regarding its telecasting agreement.
In the judgment issued by U.S. District Judge Philip S. Gutierrez, he highlighted that while the evidence presented could suggest anticompetitive behavior by the NFL, the jury’s conclusion that subscribers had been overcharged did not align with the presented proofs. The plaintiffs argued that NFL’s arrangement with DirecTV unfairly hiked the subscription rates for viewing out-of-market games.
This ruling came after a detailed three-week trial that resulted in a jury siding with the football fans in June. Had the initial verdict been upheld, the NFL could have faced liabilities up to $14 billion, as under federal law, damages in antitrust cases can be tripled.
The NFL responded to the dismissal with relief, emphasizing through a statement that their media distribution model includes various options for fans, ensuring accessibility to games, including free local broadcasts.
The lawsuits consolidated under this case accused the NFL and DirecTV of creating a monopoly with their Sunday Ticket package, resulting in inflated prices for consumers wishing to watch games outside their local markets. The jury had found this arrangement to be anticompetitive.
However, dispute arose on how the damages were calculated. According to the court documents, jurors based their assessment on the list price of the NFL Sunday Ticket during the 2018 and 2019 seasons. But subtracting what residential subscribers actually paid on average from 2011 to 2023, they derived an estimated discount rather than an overcharge, leading to confusion and what Judge Gutierrez termed “nonsensical” calculations.
Adding complexity to the case, DirecTV, despite denying any wrongdoing, wasn’t on trial directly due to a 2021 ruling that pushed customer claims against the company into arbitration. The NFL has since moved its Sunday Ticket broadcasting responsibilities from DirecTV to Alphabet Inc.’s YouTube unit starting this season.
Attorneys representing the subscribers challenged the assertion that the jury’s methodology was flawed, stating the damages awarded were already significantly less than the $7 billion originally sought by the subscribers.
This legal battle emphasizes the ongoing issues and debates surrounding content distribution and pricing in professional sports, particularly as they pertain to monopolistic practices and consumer rights. The question of fair pricing for sports broadcasting continues to be a heated topic among stakeholders, including leagues, broadcasters, and fans. Meanwhile, the NFL maintains its stance on providing varied viewing options to cater to a diverse fan base. The case is officially titled In re National Football Leagues Sunday Ticket Antitrust Litigation and is filed in the U.S. District Court, Central District of California in Los Angeles.