Jury to Deliberate in NFL "Sunday Ticket" Class-Action Lawsuit
The jury in the highly-anticipated class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL is set to begin deliberations on Wednesday. This follows the conclusion of both sides’ arguments on Monday.
Final Preparations and Motions
U.S. District Judge Philip Gutierrez will convene with attorneys from both sides on Tuesday morning to finalize jury instructions. Additionally, the NFL plans to file a motion on Tuesday afternoon requesting judgment as a matter of law, arguing that the plaintiffs have not presented sufficient evidence to support their claims.
Judge Gutierrez is expected to present the final instructions to the jury, which comprises five men and three women, on Wednesday morning. This will be followed by closing arguments, with each side allocated 1 hour and 10 minutes, and the plaintiffs receiving an additional 20 minutes for rebuttal.
Expert Testimonies
The NFL concluded its defense on Monday morning with the testimony of Stanford economics professor B. Douglas Bernheim. Bernheim supported the league’s position that selling out-of-market Sunday afternoon games on Fox and CBS to DirecTV from 1994 to 2022, and more recently to Google YouTube TV, benefits fans and promotes competitive balance in the league. He emphasized that the revenues generated from "Sunday Ticket" enhance financial equality among teams.
In contrast, Harvard professor Einer Elhauge, serving as the plaintiffs' rebuttal witness, argued against the NFL’s stance. Elhauge asserted that there are no significant links between the premium pricing of the "Sunday Ticket" package and the promotion of competitive balance within the league. He testified that the approximately $62.5 million each team receives annually from "Sunday Ticket" has a minimal impact on the salary cap or the operating budgets of individual teams.
Further complicating matters, Dallas Cowboys owner Jerry Jones testified last week, stating he would not support a salary cap if he were able to sell his out-of-market rights independently.
The Legal Battle
This class-action lawsuit 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 plaintiffs accuse the NFL of violating antitrust laws by selling its package of Sunday games broadcast on CBS and Fox at inflated prices, while restricting competition by exclusively offering "Sunday Ticket" through a satellite provider.
The NFL argues that it has 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.
Potential Implications and Damages
If the NFL is found liable, the jury could award damages amounting to $7 billion. Given the nature of the antitrust allegations, this figure could potentially triple to $21 billion. The case, which was originally filed in 2015 by the Mucky Duck sports bar in San Francisco, faced initial dismissal in 2017. However, the 9th Circuit Court of Appeals, which has jurisdiction over California and eight other states, reinstated the case in 2019. Judge Gutierrez sanctioned the proceeding as a class action last year.
Regardless of the outcome, the losing side is expected to appeal the verdict, possibly taking the case to the 9th Circuit Court of Appeals and potentially the Supreme Court. The deliberations mark a critical juncture in this long-standing legal battle, with implications that could significantly affect the future of sports broadcasting and the legality of exclusive distribution deals.
As the jury prepares to deliberate, the sports world is closely watching, eager to see a verdict that could reshape the landscape of televised sports. The decision will not only impact the NFL but could also set a precedent for how exclusive broadcasting rights are handled in the future.