The Jury Deliberates in NFL "Sunday Ticket" Class-Action Lawsuit
The jury in the high-stakes class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL is poised to begin deliberations on Wednesday. This follows the conclusion of both sides presenting their cases on Monday.
Judge Finalizes Instructions as Deliberations Near
U.S. District Judge Philip Gutierrez is scheduled to meet with attorneys for both parties Tuesday morning to finalize jury instructions. Additionally, the judge may hear a motion from the NFL on Tuesday afternoon, requesting a judgment as a matter of law. The NFL will argue that the plaintiffs failed to provide sufficient evidence to support their claims.
On Wednesday morning, Judge Gutierrez will present final instructions to the jury, which consists of five men and three women, before both sides make their closing arguments. Each party will receive 1 hour and 10 minutes to deliver their final statements, with the plaintiffs granted an additional 20 minutes for rebuttal.
Testimonies and Their Impacts
The NFL's final witness, Stanford economics professor B. Douglas Bernheim, wrapped up his testimony on Monday morning after starting last Thursday. Bernheim reiterated the NFL's claim that their practice of selling out-of-market Sunday afternoon games on Fox and CBS to DirecTV from 1994 to 2022, and subsequently to Google YouTube TV, benefits fans and ensures competitive balance on the playing field.
Conversely, Harvard professor Einer Elhauge, the plaintiffs' rebuttal witness, argued there were no significant links between the league's choice to make "Sunday Ticket" a premium package and fostering competitive balance. Elhauge further testified that the roughly $62.5 million each NFL team receives annually from "Sunday Ticket" wouldn’t dramatically impact the league’s salary cap or individual teams' operating budgets.
Last week, Dallas Cowboys owner Jerry Jones also took the stand, stating he wouldn’t support a salary cap if he could sell his out-of-market rights independently.
The Charges in Detail
This class action includes 2.4 million residential subscribers and 48,000 businesses that purchased the out-of-market games package from the 2011 through 2022 seasons. The lawsuit claims the NFL broke antitrust laws by selling its package of Sunday games aired on CBS and Fox at inflated prices while limiting competition by exclusively offering "Sunday Ticket" through a satellite provider.
The NFL argues that it retains the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. However, the plaintiffs contend this exemption only applies to over-the-air broadcasts, not pay TV. If the NFL is found liable, the jury could award damages up to $7 billion, a figure that could triple to $21 billion due to the antitrust nature of the case.
A Long Legal Journey
Originally filed in 2015 by the Mucky Duck sports bar in San Francisco, the lawsuit faced initial dismissal in 2017. However, the 9th Circuit Court of Appeals, which has jurisdiction over California and eight other states, reinstated the case two years later. Judge Gutierrez sanctioned the proceeding as a class action last year.
Regardless of the decision, it is widely anticipated that the losing side will appeal the verdict, possibly escalating the case to the 9th Circuit and potentially the Supreme Court. This next phase marks a critical juncture in a long-standing legal battle, casting doubt on the future of sports broadcasting and the legality of exclusive distribution deals.
Implications for the Future
As the jury prepares to deliberate, all eyes remain focused on the courtroom, awaiting a verdict that could reshape the landscape of televised sports. This case highlights the tension between consumer rights and major sports leagues' control over broadcasting rights. Should the plaintiffs prevail, it could signal a shift towards increased competition and potentially lower prices for sports broadcasting packages.
The outcome of this trial will inevitably set a precedent, either bolstering the NFL's practices under their claimed broadcasting exemption or challenging long-held assumptions about exclusive rights and antitrust laws. For millions of subscribers and businesses, the verdict will be a pivotal turning point, directly impacting how fans across the nation access their favorite out-of-market games.
As we await the jury's decision, one thing is clear: the ramifications of this lawsuit will be felt well beyond the confines of the courtroom. The landscape of sports broadcasting hangs in the balance, with the potential to redefine how the NFL and other major leagues navigate the intersection of business practices and legal constraints.