Class-Action Lawsuit Against NFL Goes to Jury
The jury in the class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL is expected to begin deliberations on Wednesday after both sides wrapped up their cases on Monday. 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, Gutierrez might hear a motion from the NFL on Tuesday afternoon to grant judgment as a matter of law to the league, arguing that the plaintiffs failed to provide sufficient evidence.
Final Instructions and Arguments
On Wednesday morning, Gutierrez will present final instructions to the jury, composed of five men and three women, before final arguments commence. Both sides will receive 1 hour and 10 minutes to make their closing statements, with the plaintiffs having an additional 20 minutes reserved for rebuttal. This time allocation underscores the intense and meticulous nature of this high-stakes legal battle.
Key Witness Testimonies
The NFL’s final witness, Stanford economics professor B. Douglas Bernheim, concluded his testimony on Monday morning after beginning last Thursday. Bernheim reiterated 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, Harvard professor Einer Elhauge, the plaintiffs' rebuttal witness, argued that no significant links exist between the league's constraints to make "Sunday Ticket" a premium package and fostering competitive balance. Elhauge testified that the roughly $62.5 million each team receives annually from "Sunday Ticket" wouldn’t dramatically impact the league’s salary cap or individual teams' operating budgets.
Dallas Cowboys owner Jerry Jones also testified last week, stating he wouldn’t support a salary cap if he could sell his out-of-market rights independently. His testimony provides a key insight into the inner workings of NFL team financial strategies and their impact on broader league policies.
The Core of the Lawsuit
This class action 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 lawsuit claims the NFL broke 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 plaintiffs argue that by restricting competition and inflating prices, the NFL violated consumer rights and antitrust laws.
The NFL argues that it retains 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, drawing a clear line between traditional broadcasting and modern digital distribution models.
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. Such a ruling would not only be a financial blow to the NFL but could also fundamentally change the dynamics of sports broadcasting rights and their sale strategies.
Historical Context and Potential Ramifications
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, with jurisdiction over California and eight other states, reinstated the case two years later. Judge Gutierrez sanctioned the proceeding as a class action last year, thereby amplifying its potential impact and bringing it to national attention.
Regardless of the decision, 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.
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 of this case will likely set a significant precedent, influencing not only the NFL but other sports leagues and broadcasting agreements around the world.