The judge who presided over the class-action lawsuit brought by “Sunday Ticket” subscribers against the NFL criticized the jury for not following his instructions in determining damages. U.S. District Judge Philip Gutierrez expressed his concerns during the NFL’s post-trial motion, where the league requested a ruling in its favor if the plaintiffs failed to prove their case. Gutierrez emphasized that damages should not be based on guesswork or speculation, and that each assumption in the damages calculation must be reasonable. The jury, comprised of five men and three women, awarded $4.7 billion in damages to residential and commercial subscribers, finding the NFL guilty of violating antitrust laws in distributing out-of-market Sunday afternoon games on a premium subscription service.
Discrepancies in Damages Calculation
The damages awarded by the jury differed significantly from the calculations proposed by experts in the case. Daniel Rascher, an economist at the University of San Francisco, presented a model valuing damages at $7.01 billion, while John Zona, an expert witness, offered a figure of $3.48 billion. In contrast, the jury opted for a more simplistic approach by using the 2021 list price and subtracting the average price paid by residential subscribers, resulting in $191.26 as the perceived “overcharge.” The jury then multiplied this amount by the number of subscribers to arrive at the final damages figure. NFL attorney Brian Stekloff criticized the jury’s decision, labeling the damages amount as “indefensible.”
NFL’s Response and Plans for Appeal
In response to the verdict, the NFL issued a statement criticizing the jury’s decision as contrary to the law and unsupported by the evidence presented in the trial. The league defended its media distribution model as fan-friendly, highlighting the availability of free over-the-air television broadcasts of all games in addition to various other viewing options for fans. With the potential of damages being tripled under federal antitrust laws, the NFL could face a significantly higher liability of $14,121,779,833.92. The league has indicated its intention to appeal the verdict, a process that could involve the 9th Circuit Court of Appeals and potentially the Supreme Court. Any payment of damages, alterations to the “Sunday Ticket” package, or changes in how the NFL distributes Sunday afternoon games would be put on hold until all appeals have been exhausted.
The outcome of the NFL “Sunday Ticket” lawsuit highlights the complexities associated with calculating damages in antitrust cases. The discrepancies between the jury’s award and the expert models, as well as the judge’s criticism of the jury’s approach, underscore the challenges in reaching a fair and accurate determination of damages. As the legal proceedings continue through the appeals process, the future of the “Sunday Ticket” package and the NFL’s media distribution practices remain uncertain. Ultimately, this case serves as a reminder of the intricate legal issues surrounding antitrust law and the importance of thorough and well-supported damages calculations in such cases.
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