Judge Expresses Frustrations in 'Sunday Ticket' Class-Action Lawsuit
LOS ANGELES -- U.S. District Judge Philip Gutierrez, presiding over the class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL, voiced his frustrations Tuesday regarding the handling of the case by the plaintiffs' attorneys.
The Context
Before Dallas Cowboys owner Jerry Jones took the stand for a second day of testimony, Judge Gutierrez clarified that the case's premise was straightforward. He acknowledged the frustration of a Seattle Seahawks fan living in Los Angeles who cannot watch their preferred team without purchasing a subscription that includes all the Sunday afternoon out-of-market games.
This lawsuit affects 2.4 million residential subscribers and 48,000 businesses who paid for the package of out-of-market games from the 2011 through 2022 seasons. The plaintiffs claim that the league violated antitrust laws by selling its package of Sunday games aired on CBS and Fox at inflated prices. Additionally, they argue that the league restricted competition by offering "Sunday Ticket" exclusively through a satellite provider.
NFL's Defense
The NFL firmly maintains that it has the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. However, the plaintiffs counter that this exemption should apply only to over-the-air broadcasts and not pay TV. Should the NFL be found liable, a jury could award up to $7 billion in damages. This figure could triple to $21 billion, as antitrust cases can result in triple damages.
Tuesday's session was marked by Judge Gutierrez's continued frustration with the plaintiffs' side. On Monday, he admonished their attorneys for repeatedly recounting past testimonies he deemed unnecessary. Before Jones resumed his testimony, Gutierrez expressed doubts about the plaintiffs' attorneys citing Jones' 1995 lawsuit against the NFL, which challenged the league's licensing and sponsorship procedures. That case was eventually settled out of court.
Jerry Jones and Sean McManus Testify
When asked Tuesday if teams should be able to sell their out-of-market television rights, Jones replied that they should not, as it "would undermine the free TV model we have now." Retired CBS Sports chairman Sean McManus also took the stand, reiterating his opposition to "Sunday Ticket" and the NFL's Red Zone channel. McManus argued that "Sunday Ticket" infringes on the exclusivity CBS has in local markets.
CBS and Fox both requested during negotiations that "Sunday Ticket" be sold as a premium package. DirecTV, not the NFL, set the prices during the class-action period. The league has language in its television contracts with CBS and Fox, which stipulates that "resale packages (Sunday Ticket) are to be marketed as premium products for avid league fans that satisfy complementary demand to the offering of in-market games." Additional 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. Starting last year, Google's YouTube TV acquired "Sunday Ticket" rights for seven seasons. During a deposition, DirecTV marketing official Jamie Dyckes stated that MLB, the NBA, and the NHL had suggested retail prices for their out-of-market packages. Dyckes added that there was revenue sharing between the leagues and the carriers, as their packages were distributed across multiple platforms.
Ongoing Proceedings
Testimony will continue Thursday, with closing statements scheduled for early next week. Judge Gutierrez mentioned he might consider invoking a rule allowing the court to conclude that a jury lacks sufficient evidence to rule for a party in a case.
Judge Gutierrez's Quotes
Gutierrez candidly admitted, "I'm struggling with the plaintiffs' case." Throughout the proceedings, his comments have reflected 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."
As the case progresses, all eyes will remain on the courtroom, anticipating whether the plaintiffs' attorneys can present a compelling argument that aligns with the straightforward premise Judge Gutierrez initially outlined.