The Jury Deliberates on NFL "Sunday Ticket" Class-Action Lawsuit
The courtroom drama surrounding the NFL’s "Sunday Ticket" package is approaching a critical juncture, as the jury in the high-stakes class-action lawsuit filed by subscribers is expected to begin deliberations on Wednesday. This follows the conclusion of both sides' cases on Monday.
A Day of Final Preparations
Before deliberations begin, 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, on Tuesday afternoon, Gutierrez may hear a motion from the NFL to grant judgment as a matter of law to the league, arguing that the plaintiffs failed to provide sufficient evidence to support their claims.
Final Arguments and Jury Instructions
Wednesday morning will see Judge Gutierrez presenting the final instructions to the jury, composed of five men and three women. Following this, both sides will have the opportunity to make their closing statements, with 1 hour and 10 minutes allotted to each. The plaintiffs have an additional 20 minutes reserved for rebuttal.
Key Testimonies
On Monday morning, the NFL’s final witness, Stanford economics professor B. Douglas Bernheim, concluded his testimony. Bernheim supported 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 arguments, Harvard professor Einer Elhauge, the plaintiffs' rebuttal witness, testified that there are no significant links between making "Sunday Ticket" a premium package and fostering competitive balance. Elhauge pointed out that the approximately $62.5 million each team receives annually from "Sunday Ticket" revenue wouldn't significantly impact the league’s salary cap or individual teams' operating budgets.
Dissent Among Team Owners
Further complicating the NFL's position was testimony from Dallas Cowboys owner Jerry Jones. Last week, Jones stated he wouldn’t support a salary cap if he could sell his out-of-market rights independently, highlighting a potential rift in the league's united front.
The Lawsuit's Background
The 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 breaking 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 that this exemption only applies to over-the-air broadcasts, not pay TV.
Financial Stakes and Legal Precedents
If the NFL is found liable, the jury could award damages of up to $7 billion—a figure that could potentially triple to $21 billion, given the antitrust nature of the case. 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 case as a class action last year.
Potential Appeals and Future Implications
Regardless of the decision, it’s anticipated that the losing side will appeal the verdict. This could potentially escalate 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 outcome could have profound implications not just for the NFL and its fans, but for how professional sports leagues negotiate broadcasting rights in the future.