The Jury Prepares to Deliberate in "Sunday Ticket" Class-Action Lawsuit
The class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL has reached a pivotal juncture as the jury is expected to begin deliberations on Wednesday. This follows the conclusion of both sides presenting their cases on Monday.
Final Preparations in Court
U.S. District Judge Philip Gutierrez is set to convene with attorneys from both sides on Tuesday morning to complete the jury instructions. Additionally, the afternoon will see Gutierrez addressing a motion from the NFL, which seeks judgment as a matter of law, arguing that the plaintiffs have not provided sufficient evidence to warrant a trial.
Judge Gutierrez will deliver the final jury instructions to the panel, consisting of five men and three women, on Wednesday morning. Following this, both sides will present their closing arguments, each allocated 1 hour and 10 minutes, with the plaintiffs granted an additional 20 minutes for rebuttal.
Closing Arguments and Key Testimonies
The NFL’s final witness, Stanford economics professor B. Douglas Bernheim, wrapped up his testimony after beginning last Thursday. Bernheim reinforced the NFL's position that the sale of out-of-market Sunday afternoon games on Fox and CBS to DirecTV (from 1994 to 2022) and then to Google YouTube TV benefits fans and boosts competitive balance on the field.
Countering this, the plaintiffs' rebuttal witness, Harvard professor Einer Elhauge, argued that there are no significant links between the NFL's constraints on "Sunday Ticket" and the promotion of competitive balance. Elhauge testified that the approximately $62.5 million each team receives annually from "Sunday Ticket" would not greatly influence the league’s salary cap or the operating budgets of individual teams.
Notably, Dallas Cowboys owner Jerry Jones also gave testimony last week. He emphasized that he would not support a salary cap if he were able to sell his out-of-market rights independently.
The Basis of the Lawsuit
This class action represents 2.4 million residential subscribers and 48,000 businesses that bought the "Sunday Ticket" out-of-market games package from the 2011 through 2022 seasons. The lawsuit alleges that the NFL violated antitrust laws by inflating the prices of its Sunday game package on CBS and Fox while limiting competition by exclusively offering "Sunday Ticket" through a satellite provider.
The NFL maintains that it has the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. Conversely, the plaintiffs argue that this exemption only applies to over-the-air broadcasts, not pay TV.
Potential Consequences
If the NFL is found liable, the jury could award damages amounting to $7 billion, a figure that could triple to $21 billion due to the antitrust nature of the case. This lawsuit was initially filed in 2015 by the Mucky Duck sports bar in San Francisco. Though it faced initial dismissal in 2017, the 9th Circuit Court of Appeals reinstated the case two years later. Judge Gutierrez authorized it as a class action last year.
Regardless of the outcome, the losing party is expected to appeal, possibly escalating the case to the 9th Circuit and even the Supreme Court. The upcoming deliberations mark a crucial point in this long-standing legal battle, which has the potential to reshape the future of sports broadcasting and the legality of exclusive distribution agreements.
Looking Ahead
As the jury prepares to deliberate, all eyes remain focused on the courtroom. The impending verdict could profoundly influence the landscape of televised sports. Whether the NFL's argument of benefit and competitive balance stands up against the allegations of antitrust violations remains to be seen. The outcome will undoubtedly be watched closely by fans, businesses, and the entire sports industry alike.