Judge Overturns $4.7 Billion Verdict Against NFL in ‘Sunday Ticket’ Antitrust Case

On August 1, 2024, a California judge overturned a $4.7 billion jury verdict against the National Football League (NFL) in a high-profile antitrust case concerning the league’s “Sunday Ticket” package. The original verdict, delivered in June, accused the NFL of violating antitrust laws by bundling out-of-market games into a single package, forcing consumers to pay for games they did not wish to watch.

The lawsuit, initially filed in 2015, claimed that the NFL’s distribution strategy unfairly inflated the cost of the “Sunday Ticket” package, leaving consumers with no option but to purchase the entire bundle. Plaintiffs argued that if teams were allowed to sell their games individually, prices would be more competitive, benefiting consumers who only wanted access to specific games.

Judge Philip Gutierrez of the U.S. District Court in California nullified the jury’s decision, pointing to what he identified as flawed methodologies in the expert testimonies provided by the plaintiffs. He stated that the evidence presented did not sufficiently prove class-wide injury or damages, labeling the jury’s award as speculative.

The case involved millions of subscribers who had purchased the “Sunday Ticket” package through DirecTV, and later through Google’s YouTube, between June 2011 and February 2023. The original jury award included $4.6 billion for residential subscribers and $96 million for commercial subscribers like bars and restaurants. Under federal antitrust law, these damages could have been tripled to $14.1 billion had the verdict stood.

In response to the ruling, the NFL expressed relief, stating that its media distribution model offers fans a wide array of options to watch their favorite teams, including free local broadcasts. The league has consistently maintained that the “Sunday Ticket” package is a premium product that enhances fans’ access to out-of-market games.

The plaintiffs, representing over 2.4 million residential customers and 48,000 commercial entities, may still appeal the decision, potentially prolonging the legal battle. The outcome of this case could have significant implications for how sports leagues structure and sell broadcast rights in the future, especially in an era where digital streaming is transforming traditional viewing habits.

The case highlights the ongoing tension between consumer rights and the business models of major sports leagues. With the verdict now overturned, the future of the “Sunday Ticket” package and its pricing structure remains uncertain.