The $4.7 billion verdict against the National Football League for colluding to raise prices for its Sunday Ticket television package was overturned late Thursday by a federal judge, who disqualified expert testimony used by the jury to determine damages.
The judge, Philip Gutierrez of U.S. District Court in Los Angeles, ruled a day after lawyers for the N.F.L. had asked him to exclude testimony from key witnesses for plaintiffs representing thousands of customers who bought Sunday Ticket, a season-long package that showed all out-of-town games and was sold by DirecTV.
The jury’s verdict five weeks ago in favor of those plaintiffs threatened to upend the league’s strategy of selling exclusive television packages to broadcasters.
In his 16-page decision, Judge Gutierrez said the plaintiffs’ two economic witnesses had used flawed methodology in their attempts to show that the league overcharged Sunday Ticket customers. The jury’s calculations of damages were thrown out because they were based on the witnesses’ testimony, which included comparisons to how college games are broadcast and unsubstantiated speculation on how the N.F.L. might sell games individually, the judge said.
Advertisement
SKIP ADVERTISEMENT
“The court finds that the jury’s damages awards were not based on the ‘evidence and reasonable inferences’ but instead were more akin to ‘guesswork or speculation,’” he wrote.
Judge Gutierrez also said the jury had not followed his instructions for calculating damages, which in antitrust cases like this one are tripled and would have led to a $14.1 billion verdict against the league.
“We are grateful for today’s ruling in the Sunday Ticket class action lawsuit,” the league said in a statement. “We believe that the N.F.L.’s media distribution model provides our fans with an array of options to follow the game they love, including local broadcasts of every single game on free over-the-air television.”
Calls and text messages to Bill Carmody, a lawyer representing the plaintiffs, were not immediately returned.
Before the judge’s decision, the N.F.L. said it was prepared to appeal the jury’s verdict. The plaintiffs can potentially appeal the decision to the U.S. Court of Appeals for the Ninth Circuit.
The monthlong trial featured testimony from the N.F.L.’s commissioner, Roger Goodell; Jerry Jones, the owner of the Dallas Cowboys; and Sean McManus, who recently retired as the chairman of CBS Sports.
Last season, the N.F.L. ended its relationship with DirecTV and sold the rights to the Sunday Ticket package to YouTube for as much as $2.5 billion annually.
The judge, Philip Gutierrez of U.S. District Court in Los Angeles, ruled a day after lawyers for the N.F.L. had asked him to exclude testimony from key witnesses for plaintiffs representing thousands of customers who bought Sunday Ticket, a season-long package that showed all out-of-town games and was sold by DirecTV.
The jury’s verdict five weeks ago in favor of those plaintiffs threatened to upend the league’s strategy of selling exclusive television packages to broadcasters.
In his 16-page decision, Judge Gutierrez said the plaintiffs’ two economic witnesses had used flawed methodology in their attempts to show that the league overcharged Sunday Ticket customers. The jury’s calculations of damages were thrown out because they were based on the witnesses’ testimony, which included comparisons to how college games are broadcast and unsubstantiated speculation on how the N.F.L. might sell games individually, the judge said.
Advertisement
SKIP ADVERTISEMENT
“The court finds that the jury’s damages awards were not based on the ‘evidence and reasonable inferences’ but instead were more akin to ‘guesswork or speculation,’” he wrote.
Judge Gutierrez also said the jury had not followed his instructions for calculating damages, which in antitrust cases like this one are tripled and would have led to a $14.1 billion verdict against the league.
“We are grateful for today’s ruling in the Sunday Ticket class action lawsuit,” the league said in a statement. “We believe that the N.F.L.’s media distribution model provides our fans with an array of options to follow the game they love, including local broadcasts of every single game on free over-the-air television.”
Calls and text messages to Bill Carmody, a lawyer representing the plaintiffs, were not immediately returned.
Before the judge’s decision, the N.F.L. said it was prepared to appeal the jury’s verdict. The plaintiffs can potentially appeal the decision to the U.S. Court of Appeals for the Ninth Circuit.
The monthlong trial featured testimony from the N.F.L.’s commissioner, Roger Goodell; Jerry Jones, the owner of the Dallas Cowboys; and Sean McManus, who recently retired as the chairman of CBS Sports.
Last season, the N.F.L. ended its relationship with DirecTV and sold the rights to the Sunday Ticket package to YouTube for as much as $2.5 billion annually.
