NFL’s $4.7 Billion Verdict Overturned Amid Methodology Concerns
In a significant legal development, U.S. District Judge Philip Gutierrez has overturned the $4.7 billion verdict against the National Football League (NFL), citing substantial flaws in the methodologies employed by the plaintiffs' expert witnesses. The decision, handed down on a Thursday, followed a pivotal hearing held the previous day in Los Angeles.
Judge Gutierrez’s ruling came as a relief for the NFL, which faced potentially crippling financial penalties under the initial verdict. Crucially, the judge’s decision hinged on the exclusion of critical testimonies from the plaintiffs' expert witnesses, Dr. Daniel Rascher and Dr. Roger Zona, whose methodologies were deemed flawed.
"The court agrees that Dr. Rascher's and Dr. Zona's testimonies based on their flawed methodologies should be excluded," stated Judge Gutierrez. With these testimonies excluded, the plaintiffs’ case lost vital support for proving class-wide injury and damages, prompting the judge to rule in favor of the defendants. "And because there was no other support for the class-wide injury and damages elements of the plaintiffs' claims, judgment as a matter of law for the defendants is appropriate," he emphasized.
The initial jury had been tasked with deliberating on three financial models presented during the trial. However, rather than relying on these models, they devised their own formula, ultimately determining the verdict amount of $4.7 billion. This figure, under federal antitrust laws, could have been tripled to a staggering $14.1 billion in damages.
Judge Gutierrez criticized the jury's approach, stressing that damages must be grounded in reasonable assumptions rather than conjecture. "Damages may not be based on guesswork or speculation. Plaintiffs must prove the reasonableness of each of the assumptions upon which the damages calculation is based," he remarked. He further noted the jury's failure to adhere to court instructions: "There's no doubt about what they did. They didn't follow the instructions."
Despite this judicial reversal, the ruling did not entirely clear the NFL of antitrust accusations. Nevertheless, the voiding of the massive financial penalties allows the league to move forward without an immediate financial overhang.
The NFL expressed its relief through an official statement, conveying gratitude for the judge’s decision. "We are grateful for today's ruling in the Sunday Ticket class-action lawsuit. We believe the NFL's media distribution model provides our fans with an array of options to follow the game they love, including local broadcast of every single game on free over-the-air television. We thank Judge Gutierrez for his time and attention to this case and look forward to an exciting 2024 NFL season," the statement read.
The timing of Judge Gutierrez’s ruling coincided with the start of the 2024 pre-season, marked by the Hall of Fame game in Canton, Ohio. This favorable outcome allows the NFL to proceed with its operations unimpeded by the specter of a monumental financial burden. The league's media distribution model, which offers diverse viewing options for fans, was highlighted as a key factor in its defense strategy.
As the legal dust settles, the NFL can now shift focus back to the field, where the anticipation for the upcoming season builds among fans and stakeholders alike.