Jury in NFL 'Sunday Ticket' Lawsuit Prepares for Deliberation
The long-standing legal battle involving the NFL’s "Sunday Ticket" is reaching a critical juncture as the jury in the class-action lawsuit filed by subscribers begins deliberations. The deliberations are set to start on Wednesday after both sides completed their cases on Monday. With high stakes involved, including potential damages amounting to billions of dollars, the verdict could have profound implications for sports broadcasting and exclusive distribution deals.
Judge's Conference and Legal Motions
U.S. District Judge Philip Gutierrez is scheduled to meet with attorneys from both sides on Tuesday morning to finalize jury instructions. Additionally, Gutierrez may hear a motion from the NFL on Tuesday afternoon, requesting a judgment as a matter of law. The league argues that the plaintiffs failed to provide sufficient evidence to support their claims.
On Wednesday morning, Judge Gutierrez will present the final instructions to the jury, composed of five men and three women. Following this, both sides will have the opportunity to make their closing statements. Each side is allocated 1 hour and 10 minutes for their statements, with the plaintiffs having an additional 20 minutes reserved for rebuttal.
Economic Testimonies and Arguments
Stanford economics professor B. Douglas Bernheim, the NFL’s final witness, concluded his testimony on Monday morning. Bernheim, who began his testimony last Thursday, reinforced the NFL's argument that 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.
In opposition, Harvard professor Einer Elhauge, the plaintiffs' rebuttal witness, testified that there are no significant links between the league's constraints to designate "Sunday Ticket" as a premium package and the promotion of competitive balance. Elhauge argued that the roughly $62.5 million each team receives annually from the "Sunday Ticket" package wouldn’t substantially impact the league’s salary cap or individual teams' operating budgets.
Key Testimonies and Class Action Details
Notably, Dallas Cowboys owner Jerry Jones testified last week, stating that he wouldn’t support a salary cap if he were allowed to sell his out-of-market rights independently. This testimony underlined the plaintiffs' argument against the league's current distribution arrangement.
The 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 contends that the NFL violated 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.
Antitrust Exemption Debate
The NFL defends its actions by asserting that it retains the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. However, the plaintiffs counter this by arguing that the exemption only applies to over-the-air broadcasts, not pay TV. If the jury finds the NFL liable, damages could amount to $7 billion, a figure that could potentially triple to $21 billion due to the antitrust nature of the case.
History and Appeals
Originally filed in 2015 by the Mucky Duck sports bar in San Francisco, the lawsuit faced an 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.
No matter the outcome, the losing side is expected to appeal the verdict, potentially escalating the case to the 9th Circuit and possibly the Supreme Court. This class action has become a landmark case, raising critical questions about the future of sports broadcasting and the legality of exclusive distribution arrangements.
The Road Ahead
As the jury prepares to deliberate, all eyes remain focused on the courtroom. The impending verdict could reshape the landscape of televised sports, with sweeping consequences for how fans access and view out-of-market games. The upcoming deliberations in this high-stakes lawsuit mark a pivotal moment in the ongoing debate over sports broadcasting rights and antitrust laws.