NFL Scores Victory as Federal Judge Tosses Out $4.7 Billion ‘Sunday Ticket’ Lawsuit Verdict!

Body: In a critical battlefield turn-around for the National Football League (NFL), a federal judge has nullified an intense, multi-billion-dollar jury ruling in relation to the ‘Sunday Ticket’ lawsuit. Taking center stage in this legal drama was a whopping $4.7 billion which stood as the monumental restitution that hung over the NFL. However, as of the recent ruling, this sum has dramatically been overturned. The ‘Sunday Ticket’ which stirred the lawsuit, involves a package deal that allows customers to view any out-of-market game on Sundays. Until today, NBA, NHL, and MLB have never had exclusive contracts like the one between the NFL and DirecTV. National Football League games not shown on local television can only be seen via DirecTV’s Sunday Ticket package or in certain cases, on Amazon Prime. This deal has been exclusive since 1994, as both companies renewed their agreement right up to the year 2022. The legal dispute was set in motion when commercial entities like bars and restaurants, which subscribe to the package for the entertainment of their clients, felt disadvantaged by the exclusivity of the deal. They contended that exclusive contracts like this one lead to higher prices and filed a class-action lawsuit against the NFL and DirecTV in 2015. According to them, if not for the exclusivity clause, other broadcasting networks might have had the chance to broadcast out-of-market games, thereby invariably leading to a decrease in annual subscription fees. In 2017, the 9th U.S. Circuit Court of Appeals gave a go-ahead for the antitrust suit. Then, in September 2021, a Los Angeles jury sided with the plaintiffs, leading to the formidable $4.7 billion judgment against the NFL. However, in a twist of events, U.S District Judge R. Gary Klausner overruled this verdict on Feb. 28, 2023, marking a significant win for the league. In his judgment, the judge stated that the jury lacked substantial evidence to justify the cost overcharge their verdict implied. The plaintiffs failed to prove that the NFL’s pact with DirecTV led to broadcasters being unable to bid for games and, in turn, to overcharge. Klausner noted that, contrary to the plaintiffs’ assertions, there were numerous other factors that could account for the increases in the Sunday Ticket price, including inflation and rising programming costs. Furthermore, he stated that the plaintiffs did not prove with clear evidence that the elimination of exclusivity would have led to lower prices for DirecTV’s Sunday Ticket Package. The NFL has, over the years, made its mark as an entity known for evolving its broadcasting distribution models. Yet, with this recent ruling, it seems that the status quo will persist, at least for now. Overturning the colossal $4.7 billion jury verdict is significant not just for the National Football League and DirecTV, but for other key players in the sports, entertainment, and broadcasting industry, setting a precedent that could influence similar lawsuits and contracts in the future. While the decision has undeniably brought relief to NFL and DirecTV, it’s clear it marks a setback for bars, restaurants, and consumers hoping for more affordable and broader access to games. As legal battles continue to shape the industry, stakeholders will be closely watching this case for its potential implications in similar future disputes.