The Jury Deliberates in the "Sunday Ticket" Class-Action Lawsuit Against the NFL
The much-anticipated deliberations in the class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL are set to begin on Wednesday. This follows both sides wrapping up their cases on Monday.
Pre-Deliberation Conference and Jury Instructions
U.S. District Judge Philip Gutierrez is scheduled 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 on Tuesday afternoon seeking judgment as a matter of law, arguing that the plaintiffs have failed to present sufficient evidence.
On Wednesday morning, Gutierrez will provide the jury, composed of five men and three women, with the final instructions before the parties deliver their closing arguments. Each side will have 1 hour and 10 minutes to make their closing statements, while the plaintiffs will have an additional 20 minutes reserved for rebuttal.
Final Witnesses
The NFL's final witness, Stanford economics professor B. Douglas Bernheim, concluded his testimony on Monday morning after starting last Thursday. Bernheim reaffirmed the NFL's position 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.
However, Harvard professor Einer Elhauge, the plaintiffs' rebuttal witness, contested Bernheim's claims. Elhauge argued that no significant links exist between the league's decision to make "Sunday Ticket" a premium package and fostering competitive balance. He testified that the approximately $62.5 million each team receives annually from "Sunday Ticket" would not significantly impact the league’s salary cap or the operating budgets of individual teams.
Dallas Cowboys owner Jerry Jones also took the stand last week, stating that he would not support a salary cap if he could sell his out-of-market rights independently.
Class Action Details
This class action affects 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 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 contends that it retains the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. Conversely, the plaintiffs argue this exemption applies only 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.
Legal Proceedings and Context
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, 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.
Regardless of the outcome, 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.
Implications for Sports Broadcasting
As the jury prepares to deliberate, the sports world is on edge, awaiting a verdict that could reshape the landscape of televised sports. The case's outcome could have far-reaching implications, particularly regarding how sports leagues package and sell broadcasting rights in the future.
The plaintiffs maintain that the NFL's exclusive agreements with satellite providers have stifled competition and led to inflated prices, disadvantaging consumers and local businesses alike. On the other hand, the NFL argues that its approach has fostered a competitive balance and ensures that fans have wide access to games, particularly those involving out-of-market teams.
Whatever the outcome, this case will likely serve as a landmark decision in the realm of sports broadcasting and antitrust law, influencing how leagues and broadcast partners negotiate rights packages moving forward.
All eyes remain focused on the courtroom as we await a decision that may significantly impact the viewing experience of sports fans across the nation.