A Landmark Lawsuit Nears Conclusion: The Future of "Sunday Ticket" Hangs in the Balance
The jury in the class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL is expected to begin deliberations on Wednesday after both sides wrapped up their cases on Monday. U.S. District Judge Philip Gutierrez will be overseeing the pivotal moments before the jury begins its discussions.
Final Preparations
Judge Gutierrez scheduled a conference with attorneys from both sides on Tuesday morning to finalize the jury instructions. Additionally, the court might hear a motion from the NFL on Tuesday afternoon to grant judgment as a matter of law to the league, arguing that the plaintiffs failed to provide sufficient evidence.
Wednesday will see the judge presenting final instructions to the jury, composed of five men and three women, before final arguments commence. Each side will have 1 hour and 10 minutes to make their closing statements, with the plaintiffs having an additional 20 minutes reserved for rebuttal.
The Core Arguments
The NFL’s final witness, Stanford economics professor B. Douglas Bernheim, concluded his testimony on Monday morning, reiterating the NFL's stance. Bernheim argued 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. Bernheim contended that the arrangement fostered competitive equity across the league.
Countering Bernheim was Harvard professor Einer Elhauge, the plaintiffs' rebuttal witness, who argued that no significant links exist between the league's constraints to make "Sunday Ticket" a premium package and fostering competitive balance. Elhauge testified that the roughly $62.5 million each team receives annually from "Sunday Ticket" wouldn’t dramatically impact the league’s salary cap or individual teams' operating budgets.
Testimonies and Stakes
Last week, Dallas Cowboys owner Jerry Jones testified, stating he wouldn’t support a salary cap if he could sell his out-of-market rights independently. His testimony illuminated the potential financial and operational flexibility individual teams might gain if the NFL’s current distribution system were altered.
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 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 plaintiffs argue that this arrangement unfairly hindered consumer choice and kept prices artificially high.
The NFL maintains that it retains the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. Conversely, the plaintiffs contend this exemption only applies to over-the-air broadcasts, not pay TV. This legal nuance could define the case's outcome and impact future broadcasting agreements.
Potential Consequences
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. The enormous financial implications underscore the stakes for both parties. 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 reinstated the case two years later, setting the stage for the current proceedings.
Judge Gutierrez sanctioned the proceeding as a class action last year, broadening its 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. This protracted legal battle could thus extend for several more years, impacting not just the involved parties but the broader sports broadcasting landscape.
A Moment of Anticipation
The upcoming deliberations mark a critical juncture in a long-standing legal battle, casting the future of sports broadcasting and the legality of exclusive distribution deals into question. As the jury prepares to deliberate, the sports world remains focused on the courtroom, awaiting a verdict that could reshape the landscape of televised sports.