The Jury Deliberates: NFL's "Sunday Ticket" Class-Action Lawsuit Reaches Critical Phase
The high-stakes class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL is approaching a decisive moment. The jury is expected to begin deliberations on Wednesday after both sides presented their final cases on Monday.
Preparation and Deliberation
U.S. District Judge Philip Gutierrez is set to hold a conference with attorneys from both sides on Tuesday morning to finalize the jury instructions. Additionally, Gutierrez might hear a motion from the NFL later that day to grant judgment as a matter of law in favor of the league, arguing that the plaintiffs failed to provide sufficient evidence.
The judge will present his final instructions to the jury, composed of five men and three women, on Wednesday morning before the closing arguments begin. Each side will be given 1 hour and 10 minutes to make their closing statements, with the plaintiffs receiving an additional 20 minutes for rebuttal.
Testimonies and Evidence
The NFL’s final witness, Stanford economics professor B. Douglas Bernheim, concluded his testimony on Monday morning. Bernheim, who started testifying last Thursday, reiterated the NFL's stance 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 contrast, Harvard professor Einer Elhauge, serving as the plaintiffs' rebuttal witness, testified that no significant links exist between the league's constraints to make "Sunday Ticket" a premium package and fostering competitive balance. Elhauge asserted that the approximately $62.5 million each team receives annually from "Sunday Ticket" wouldn’t dramatically impact the league’s salary cap or individual teams' operating budgets.
Adding to the controversy, Dallas Cowboys owner Jerry Jones testified last week that he wouldn’t support a salary cap if he could sell his out-of-market rights independently.
The Lawsuit and Its Impacts
This class action represents 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 alleges 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.
The NFL, however, argues that it retains the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. Conversely, the plaintiffs contend that this exemption only applies to over-the-air broadcasts, not pay TV. If the NFL is found liable, the jury could award damages of $7 billion, a figure that could triple to $21 billion due to the antitrust nature of the case.
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, with jurisdiction over California and eight other states, reinstated the case two years later. Judge Gutierrez certified the proceeding as a class action last year.
Future Implications
Regardless of the decision, the losing side is anticipated to appeal the verdict, potentially escalating the case to the 9th Circuit and possibly the Supreme Court. The upcoming deliberations mark a critical juncture in this long-standing legal battle, casting the future of sports broadcasting and the legality of exclusive distribution deals into question.
Awaiting a Verdict
As the jury prepares to deliberate, all eyes remain focused on the courtroom, awaiting a verdict that could reshape the landscape of televised sports. The decision will have far-reaching implications not only for the NFL and its broadcasting practices but also for sports fans and subscribers who have invested in the "Sunday Ticket" service over the years.
The outcome of this case could set a significant precedent for how sports leagues package and sell broadcasting rights in the future, potentially opening the door for more competitive and consumer-friendly options in the marketplace.