NFL Faces Retrial After 9th Circuit Rejects $4.7B Verdict

The 9th Circuit Court of Appeals ordered a new trial in a class-action lawsuit against the NFL on Friday. The court ruled that a lower court judge made an error in discarding the damages portion of a jury verdict from 2024. The case involves subscribers who alleged the league and its partners overcharged them for the Sunday Ticket out-of-market games package.

The appeals court upheld the jury's finding that the NFL violated antitrust laws. However, it rejected the specific monetary award issued by the Los Angeles jury in June 2024. That jury had ordered the NFL to pay $4.7 billion in damages. The 9th Circuit stated that the original verdict relied on an improper consideration of evidence. The court sent the case back to the district court for a new trial focused solely on determining financial penalties.

Judge Philip Gutierrez of the U.S. District Court for the Central District of California had previously vacated the $4.7 billion award. Gutierrez argued that the figure was based on guesswork or speculation. He ruled that testimony from expert witness Daniel Rascher was inadmissible. Rascher had speculated about potential earnings for individual NFL teams if they sold out-of-market rights separately, a method used by college sports conferences.

The 9th Circuit disagreed with that exclusion. The court found that the jury should have been allowed to hear Rascher's testimony. The ruling stated that the jury awarded damages based on evidence that was improperly weighed. This decision warrants a new proceeding to calculate the correct amount owed to the class.

An NFL spokesperson expressed disappointment in the decision. The spokesperson noted that the case has been ongoing for more than 11 years. The league continues to argue that its media distribution strategy is the most fan-friendly model in sports and entertainment. The spokesperson said the NFL is considering options for further appellate review. The league points to its offering of 100% of games on free over-the-air television in participating markets and national distribution of popular games.

The lawsuit was originally filed in 2015. It represents more than 2.4 million residential subscribers and more than 48,000 commercial establishments. These entities purchased the Sunday Ticket package when DirecTV was the distribution partner. DirecTV held the rights to the package from 1994 until the 2023-24 NFL season. Google then secured a seven-year deal to sell the package via YouTube.

The trial revealed details about the league's previous negotiation options. Disney's ESPN offered to acquire the rights starting with the 2023-24 season. That proposal would have priced the package at $70 per season for single-team viewing. The NFL did not agree to that plan. The current package includes all out-of-market Sunday regular-season games broadcast on Fox and CBS.

Pricing for the service has shifted under the new distribution deal. For the 2026 season, new subscribers with a YouTube TV plan pay $240 for Sunday Ticket. Returning customers on that same plan pay $378. For subscribers who buy Sunday Ticket through YouTube without the YouTube TV bundle, the cost is $240 for new customers and $480 for returning subscribers.