The Jury Deliberates: NFL’s "Sunday Ticket" Class Action Lawsuit Enters Closing Stages
The jury in the class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL is poised to begin deliberations on Wednesday after both sides wrapped up their cases on Monday. The trial has been closely watched, as the outcome could have broad implications for sports broadcasting and the legality of exclusive distribution deals.
Judge Gutierrez to Finalize Instructions
U.S. District Judge Philip Gutierrez is scheduled to hold a conference with attorneys for both sides on Tuesday morning to finalize the jury instructions. Additionally, Gutierrez may hear a motion from the NFL on Tuesday afternoon, requesting the judge to grant judgment as a matter of law to the league, arguing that the plaintiffs failed to provide sufficient evidence. If the motion is denied, the case will proceed to the jury for deliberation.
Wednesday's Proceedings
On Wednesday morning, Gutierrez will present final instructions to the jury, composed of five men and three women, before final arguments commence. Both sides will have 1 hour and 10 minutes to make their closing statements, with the plaintiffs allocated an additional 20 minutes for rebuttal. The final instructions and closing arguments mark the culmination of a high-stakes trial that has captured considerable attention.
Key Witness Testimonies
The NFL’s final witness, Stanford economics professor B. Douglas Bernheim, concluded his testimony on Monday morning after beginning last Thursday. Bernheim 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.
Countering Bernheim's testimony, Harvard professor Einer Elhauge, the plaintiffs' rebuttal witness, argued that there are no significant links 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. Dallas Cowboys owner Jerry Jones also testified last week, stating he wouldn’t support a salary cap if he could sell his out-of-market rights independently.
The Plaintiffs' Claims
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 contend that the NFL's antitrust exemption for broadcasting applies only to over-the-air broadcasts, not pay TV. If the NFL is found liable, the jury could award damages totaling $7 billion, a figure that could triple to $21 billion due to the antitrust nature of the case.
The NFL’s Defense
The NFL has consistently argued that it retains the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting, maintaining that the deal benefits fans and promotes competitive balance. The league has underscored the importance of centralized content distribution to maximize overall viewership and maintain the competitive equity of the sport.
A Long Legal Battle
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 sanctioned the proceeding as a class action last year, allowing the case to represent the extensive group of subscribers and businesses.
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 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, all eyes remain focused on the courtroom, awaiting a verdict that could reshape the landscape of televised sports. The decision has the potential to set a precedent for how professional sports leagues can package and sell their broadcast rights, which could reverberate throughout the industry.