Judge Expresses Frustration in NFL Sunday Ticket Class-Action Lawsuit
LOS ANGELES -- The class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL saw heightened tensions on Tuesday as U.S. District Judge Philip Gutierrez expressed his dissatisfaction with the plaintiffs' attorneys and how they are managing their side of the case.
Judge's Frustration
Prior to Dallas Cowboys owner Jerry Jones taking the stand for a second day of testimony, Judge Gutierrez made a pointed commentary on the straightforward nature of the case. He articulated that the dilemma faced by a Seattle Seahawks fan living in Los Angeles, who is unable to watch their favorite team without purchasing a subscription for all Sunday afternoon out-of-market games, was a simple and clear issue.
The lawsuit encompasses 2.4 million residential subscribers and 48,000 businesses, all of whom paid for the package of out-of-market games from the 2011 through 2022 seasons. The plaintiffs argue that the NFL broke antitrust laws by selling its package of Sunday games broadcast on CBS and Fox at inflated prices. Moreover, they contend that the league restricted competition by offering "Sunday Ticket" solely through a satellite provider.
Antitrust Exemption Debated
The NFL maintains that it has the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. However, the plaintiffs counter that this exemption only applies to over-the-air broadcasts and not to pay TV. If the NFL is found liable, a jury could award up to $7 billion in damages, an amount that could potentially triple to $21 billion due to the nature of antitrust cases.
This is not the first time Judge Gutierrez has voiced frustration with the plaintiffs' attorneys. On Monday, he admonished them for repeatedly describing past testimony, which he deemed a waste of time. Before Jones resumed his testimony, Gutierrez doubted the relevance of the plaintiffs' attorneys citing Jerry Jones' 1994 lawsuit against the NFL, which challenged the league's licensing and sponsorship procedures. That case was ultimately settled out of court.
Jones' Testimony
Jones, when questioned about whether teams should be allowed to sell their out-of-market television rights, replied that they should not, asserting that it "would undermine the free TV model we have now." The class-action lawsuit defendants, including Jones, argue that league control over television rights is essential for maintaining the current model that benefits all teams and markets.
Broadcasting Rights and Market Exclusivity
Retired CBS Sports chairman Sean McManus also took the stand, reiterating his long-standing opposition to "Sunday Ticket" and the NFL's Red Zone channel. McManus expressed that "Sunday Ticket" infringes on the exclusivity CBS has in local markets. During negotiations, both CBS and Fox requested that "Sunday Ticket" be sold as a premium package.
Despite the NFL's involvement, DirecTV set the prices during the class-action period. The league's television contracts with CBS and Fox dictate that "resale packages (Sunday Ticket) are to be marketed as premium products for avid league fans." The contracts also prohibit selling individual games on a pay-per-view basis. From 1994 through 2022, the NFL received a rights fee from DirecTV for the package. However, starting last year, Google's YouTube TV acquired "Sunday Ticket" rights for seven seasons.
Market Practices
During a deposition, DirecTV marketing official Jamie Dyckes mentioned that other major sports leagues such as MLB, the NBA, and the NHL had suggested retail prices for their out-of-market packages. Dyckes added that there was revenue sharing between the leagues and the carriers, with their packages being distributed across multiple platforms.
Testimony will continue on Thursday, with closing statements expected early next week. Judge Gutierrez hinted at the possibility of invoking a rule that allows the court to determine whether a jury lacks sufficient evidence to rule in favor of a party in the case.
Courtroom Reactions
Gutierrez candidly admitted, "I'm struggling with the plaintiffs' case." His comments have consistently reflected his mounting frustrations, stating, "The way you have tried this case is far from simple." He remarked further, "This case has turned into 25 hours of depositions and gobbledygook," adding, "This case has gone in a direction it shouldn't have gone."
As the proceedings continue, much attention will remain focused on whether the plaintiffs' attorneys can present a compelling argument that aligns with the straightforward premise initially outlined by Judge Gutierrez.