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NFL Faces New Trial Over Sunday Ticket Antitrust Verdict
Confirmed
In Short: A federal appeals court has ordered a new trial on damages in a class-action lawsuit accusing the NFL of antitrust violations over its Sunday Ticket package.
A federal appeals court has ordered a new trial on damages in a class-action lawsuit accusing the NFL of antitrust violations over its Sunday Ticket package, a ruling that could see the league face another multibillion-dollar penalty. The decision, issued Friday, upheld the jury's verdict against the NFL but mandated a new trial on damages, leaving the league's liability intact.
In 2024, a jury ruled in favor of the plaintiffs, a class of DirecTV subscribers, awarding them $4.7 billion. The verdict was based on expert testimony that the NFL’s anticompetitive agreements caused subscribers to pay inflated prices for the Sunday Ticket package, which broadcasts NFL games unavailable on local affiliates.
The district court, however, ordered a new trial on damages, arguing that the jury's calculations were not supported by the evidence. The appeals court agreed, stating that the district court acted within its discretion in granting the NFL’s motion for a new trial.
The ruling represents another setback for the NFL as it defends its Sunday Ticket distribution model. The league has been hounded by this class-action lawsuit for a decade, and the appeals court's decision ensures the NFL won't be rid of it anytime soon.
The NFL has yet to decide its next steps, with a spokesperson saying the league is evaluating its options for further appellate review. The league could seek a judgment notwithstanding the verdict, arguing that no reasonable jury could have reached the verdict given the evidence presented at trial.
The appeals court's decision also highlights the ongoing debate over the reliability of expert testimony in antitrust cases. Judge Anthony Johnstone wrote in a 64-page opinion that the district court exceeded its gatekeeping role under Federal Rule of Evidence 702 by inquiring beyond the reliability of the expert’s method and the sufficiency of their data.
The NFL's media distribution strategy, which includes broadcasting 100 percent of NFL games on free over-the-air television in the markets of the participating teams and national distribution of its most popular games, remains a point of contention. The league maintains that its model is the most fan-friendly in sports and entertainment.
As the litigation continues, the NFL inked a seven-year, $14 billion deal with YouTube TV in 2023, putting Sunday Ticket on streaming. This move underscores the league's ongoing efforts to adapt its distribution model in the face of antitrust challenges.
Background
NFL Sunday Ticket is an out-of-market sports package that broadcasts National Football League (NFL) regular season games unavailable on local affiliates. Launched on September 4, 1994, It carries all the regional Sunday afternoon games produced by Fox and CBS.
What's confirmed
- Meanwhile, the NFL said it’s evaluating its options for further appellate review.
- “We continue to believe that our media distribution strategy – which features 100 percent of NFL games broadcast on free over-the-air television in the markets of the participating teams and national distribution of our most popular games, supplemented by many additional choices including RedZone, Sunday Ticket and NFL Plus – is by far the most fan-friendly distribution model in all of sports and entertainment,” that league spokesperson added.
What's still developing
- In a ruling issued Friday by the three-judge Ninth Circuit panel that heard oral arguments in March, the NFL is once again liable for violating antitrust law through its Sunday Ticket practices.
- “I listened to the hearing. To me, it sounds like the Ninth Circuit is ready to reverse the judge and revive the case,” Gardner said at the time.
- To paraphrase Super Bowl LXI halftime show headliner Jay Z, the NFL may or may not have 99 problems but a new trial over the long alleged and much litigated Sunday Ticket antitrust violation is now one.
- According to journalist and trial observer Meghann Cuniff, the residential class has been awarded $4.7 billion, while the commercial class was awarded another $96 million.
- The NFL could also seek “remittitur,” where the league would argue the damages are so excessive it would constitute a miscarriage of justice to maintain the dollar amount.
- “Reasonable jurors may debate whether college and professional football telecasts are sufficiently similar or how out-of-market NFL games would have become available in the absence of the NFL’s anticompetitive conduct,” the court wrote.
- Gutierrez ultimately found that Rascher’s work was too speculative.