Judge’s Frustration Mounts in "Sunday Ticket" Antitrust Case
LOS ANGELES -- The ongoing class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL took a dramatic turn Tuesday when U.S. District Judge Philip Gutierrez expressed his growing dissatisfaction with the plaintiffs' attorneys. Before Dallas Cowboys owner Jerry Jones testified for the second consecutive day, Gutierrez emphasized that the case's fundamental premise was straightforward.
Case Background
The lawsuit covers 2.4 million residential subscribers and 48,000 businesses who purchased the "Sunday Ticket" package of out-of-market games from the 2011 through 2022 NFL seasons. At the heart of the case is the claim that the NFL violated antitrust laws by selling its bundle of Sunday afternoon games broadcasted on CBS and Fox at inflated prices. Furthermore, the plaintiffs argue that the NFL stifled competition by offering "Sunday Ticket" exclusively through a satellite provider.
Conversely, the NFL insists it has the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. The plaintiffs contend this exemption applies only to over-the-air broadcasts and not to pay TV. If the NFL is found liable, the jury could award damages up to $7 billion, a sum that could triple to $21 billion under antitrust law provisions.
Judge's Criticisms
This week was not the first instance of Judge Gutierrez voicing his frustrations with the plaintiffs' approach. On Monday, he reprimanded their attorneys for reiterating past testimony, which he criticized as a waste of time. Before Jones resumed his testimony, Gutierrez questioned the relevance of the plaintiffs' reference to Jones' 1995 lawsuit against the NFL, which challenged the league's licensing and sponsorship procedures. That case eventually settled out of court.
Gutierrez underscored the simplicity of the case's premise by highlighting the legitimate grievance of a Seattle Seahawks fan living in Los Angeles who can only watch their favorite team by purchasing the entire package of out-of-market games.
Testimonies and Reactions
During his testimony, Jerry Jones argued against the notion that NFL teams should be able to sell their out-of-market television rights, asserting that such an action "would undermine the free TV model we have now." Jones' remarks reflect broader concerns about maintaining the league's established television revenue-sharing agreements.
Adding another layer to the case, retired CBS Sports chairman Sean McManus reiterated his long-standing opposition to "Sunday Ticket" and the NFL's Red Zone channel, accusing both of infringing on CBS's exclusive rights in local markets. McManus revealed that CBS and Fox both requested during negotiations that "Sunday Ticket" be sold as a premium package. It's important to note that DirecTV, not the NFL, set the prices during the class-action period.
The NFL's television contracts with CBS and Fox include stipulations that "Sunday Ticket" must be marketed as a premium product for avid fans, complementing the availability of in-market games. Additional contract language prohibits selling individual games on a pay-per-view basis.
From 1994 through 2022, the NFL received a rights fee from DirecTV for the package. However, starting last year, Google's YouTube TV acquired "Sunday Ticket" rights for seven seasons, marking a significant shift in how the service is distributed.
Market Comparisons and Revenue Sharing
During a deposition, DirecTV marketing official Jamie Dyckes highlighted how other major sports leagues like MLB, the NBA, and the NHL suggested retail prices for their out-of-market packages. Dyckes added that these leagues engage in revenue sharing with carriers, distributing their packages across multiple platforms, which is a contrast to the NFL's previous approach.
Up Next
Testimony will continue Thursday, with closing statements expected early next week. Judge Gutierrez mentioned he might consider invoking a rule allowing the court to find that a jury lacks sufficient evidence to rule for a particular party. As the proceedings advance, it remains to be seen whether the plaintiffs' attorneys can construct a compelling argument that aligns with the straightforward premise Judge Gutierrez initially outlined.
Quotes
Gutierrez candidly admitted, "I'm struggling with the plaintiffs' case." His comments throughout the proceedings reflect his mounting frustrations, stating, "The way you have tried this case is far from simple." He also remarked, "This case has turned into 25 hours of depositions and gobbledygook," adding, "This case has gone in a direction it shouldn't have gone."
With the case nearing its conclusion, the courtroom remains a focal point, as observers await a resolution and the potential transformative impact on how NFL games are marketed and sold nationwide.