Insurance Daily News

Appeals Court Reinstates NFL Sunday Ticket Antitrust Verdict

A federal appeals court in San Francisco has reinstated a jury verdict against the National Football League in an antitrust case concerning its Sunday Ticket broadcast package. The 9th US Circuit Court of Appeals overturned a 2024 decision by a California district judge, who had previously dismissed a $4.7 billion verdict against the league.

The lawsuit, brought by residential subscribers and commercial establishments like bars and restaurants, alleged that the NFL artificially inflated prices for Sunday Ticket to limit subscriptions and protect local broadcast rights fees. In the original trial, a Los Angeles jury awarded $4.6 billion to residential subscribers and $96.9 million to commercial entities. However, the district judge subsequently threw out the verdict, citing issues with expert testimony and insufficient evidence regarding damages.

The appeals court ruled that the district judge erred in rejecting the plaintiffs' expert witnesses, stating that a jury verdict should remain intact unless it lacks evidentiary support. Despite reinstating the verdict, the appellate panel determined that the jury’s calculation of damages did not follow the district court's instructions, necessitating a new trial specifically on the issue of damages. The NFL, which maintains that its distribution model is fan-friendly, expressed disappointment with the ruling and is currently evaluating options for further legal review.

For the insurance sector, this development highlights the complexities of antitrust litigation and the potential for massive liability exposure in high-profile class actions. Stakeholders should monitor how the upcoming damages trial unfolds, as it may influence future risk modeling and underwriting considerations for professional liability and antitrust coverage.

Why it matters

The ruling underscores the significant financial risks associated with antitrust litigation and the potential for large-scale damage awards in class-action disputes.

FAQ

What was the core allegation against the NFL?
Plaintiffs alleged the NFL inflated Sunday Ticket prices to limit subscriptions and protect fees paid by broadcast networks for local market rights.

Did the appeals court uphold the original damages amount?
No, while the court reinstated the verdict, it ordered a new trial on damages, finding the jury did not follow the district court's instructions when calculating the award.

Why did the district judge initially overturn the verdict?
The judge found that evidence did not support the damages and threw out testimony from two key witnesses.

Source: Insurance Journal. See the original source for full details.