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Judge Questions Jury’s Decision in NFL “Sunday Ticket” Lawsuit

By  |  July 31, 2024
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In a development following the Sunday Ticket class-action lawsuit against the NFL, U.S. District Judge Philip Gutierrez has expressed concerns over the jury’s determination of damages, suggesting they did not adhere to his instructions. According to Fox News, the judge raised these issues during the NFL’s post-trial motion, where the league requested a ruling in its favor if it is found that the plaintiffs failed to substantiate their case.

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    The class-action lawsuit was filed by subscribers of the NFL’s “Sunday Ticket” service, alleging that the league violated antitrust laws by selling out-of-market Sunday afternoon games at inflated prices through a premium subscription service on DirecTV. The lawsuit, representing 2.4 million residential subscribers and 48,000 businesses, argued that this exclusivity restricted competition and unfairly drove up costs for consumers.

    On June 27, a federal jury awarded a staggering $4.7 billion in damages to the plaintiffs. However, per Fox News, Judge Gutierrez noted that the jury deviated from his explicit instructions, which emphasized that damages “may not be based on guesswork or speculation” and must be grounded in reasonable assumptions.

    The jury’s calculation was notably different from the expert models presented during the trial. They utilized the 2021 list price of $293.96 for the Sunday Ticket package, subtracted the average price actually paid ($102.74), and arrived at an overcharge of $191.26. This figure was then multiplied by the number of subscribers to reach the final damages amount. This method did not align with the expert testimonies of Dr. Daniel Rascher, who estimated damages at $7.01 billion using a college football model, or Dr. John Zona’s multiple-distributor model, which suggested $3.48 billion.

    Read more: Subscribers Defend $4.7 Billion Antitrust Verdict Against NFL in Court Filings

    NFL attorney Brian Stekloff criticized the damages as “indefensible,” while Marc Seltzer, representing the subscribers, defended the jury’s decision, stating that the evidence presented had consistently supported their case.

    The NFL has announced its intention to appeal the verdict, which could potentially escalate to the 9th Circuit Court of Appeals and possibly the Supreme Court. If the initial ruling stands, the NFL could face a liability of up to $14.1 billion, as damages in antitrust cases can be tripled.

    “Today we asked the district court to set aside the jury’s verdict in this case, which is contrary to the law and unsupported by the evidence presented at trial,” the NFL stated. They further emphasized the fan-friendly nature of their media distribution model, highlighting the availability of games on free over-the-air television alongside other viewing options.

    As the legal proceedings continue, all eyes are on Judge Gutierrez, who holds the authority to either rule in favor of the NFL, order a new trial, or uphold the jury’s verdict.

    Source: Fox News