LEGAL TOUCHDOWN REVERSED: COURT NIXES BILLION-DOLLAR WIN FOR NFL FANS

LEGAL REVERSAL IMPACTS NFL PROGRAMMING PACKAGE LAWSUIT

August 2, 2024 — A significant legal development has occurred in the class action lawsuit concerning the NFL Sunday Ticket programming package. U.S. District Judge Philip Gutierrez has overturned the previous jury award of $4.7 billion to subscribers.

The judge granted the National Football League's request to dismiss the award, citing several reasons for his decision. According to Gutierrez, the jury did not adhere to his instructions, resulting in what he termed an "overcharge." Furthermore, he found fault with the economic models presented during the trial, which attempted to project subscription fees in a hypothetical market without NFL Sunday Ticket.

In his order, Judge Gutierrez stated that these models were "not the product of sound economic methodology." Consequently, he determined that the damages awarded were more akin to "guesswork or speculation" rather than figures based on "evidence and reasonable inferences.

The original jury instructions had directed the calculation of damages to be based on the difference between the actual prices paid by plaintiffs for Sunday Ticket and the hypothetical prices they would have paid without any agreement to restrict output.

For context, DirecTV offered the NFL Sunday Ticket from 1994 to 2022, with residential subscription costs typically ranging from $300 to $400. In 2023, Google began offering the package via YouTube, with current prices for NFL Sunday Ticket ranging from $349 to $449.

The initial jury verdict, delivered on June 27, had awarded over $4.7 billion in damages to individual subscribers and nearly $97 million to commercial subscribers such as bars and restaurants.

This legal reversal marks a significant turn in the ongoing dispute over the NFL's distribution of out-of-market games. The case highlights the complex intersection of sports broadcasting rights, antitrust laws, and consumer interests in the evolving landscape of sports media distribution.

As the legal proceedings continue, stakeholders in both the sports and media industries will be closely monitoring any further developments in this high-profile case.

LEGAL COMPLEXITY EMERGES IN NFL BROADCASTING CASE

August 2, 2024 — The recent court decision in the NFL Sunday Ticket lawsuit has highlighted the intricate nature of sports media distribution and antitrust law. The case, which began in 2015, centers on the distribution model of out-of-market NFL games.

The plaintiffs' legal team argued that the NFL, along with major networks and a satellite provider, had created what they termed a "single, monopolized product" through the Sunday Ticket package. Their contention was that this exclusive distribution led to inflated prices for consumers over the years.

In contrast, the NFL maintained that their distribution model was legitimate, describing the programming package as a premium product. Following the judge's recent ruling, the NFL expressed gratitude and reiterated their belief that their media distribution model offers fans various options to follow the sport, including free over-the-air television broadcasts of local games.

The case has potentially far-reaching implications, involving an estimated 2.4 million residential subscribers and 48,000 businesses who purchased the package between June 2011 and February 2023. Earlier this year, the plaintiffs had suggested they were entitled to damages of up to $7.01 billion.

The judge's decision to overturn the jury award stemmed from concerns about the jury's adherence to instructions and the economic models presented during the trial. This ruling came after a hearing where the NFL argued for the reversal of the jury's decision.

Legal representatives for the subscribers have indicated that jurors should have some flexibility in determining damages, provided they fall within an evidence-supported range.

As this complex legal battle continues to unfold, it raises important questions about the intersection of sports broadcasting, consumer rights, and antitrust regulations in the evolving landscape of media distribution. The outcome of this case could potentially influence future sports media deals and consumer options for accessing out-of-market games.

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