Legal Drama Unfolds in 'Sunday Ticket' Antitrust Lawsuit
LOS ANGELES -- The federal judge presiding over the class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL voiced his frustrations Tuesday with the plaintiffs' attorneys and how they are handling their side of the case. Before Dallas Cowboys owner Jerry Jones took the stand for a second day of testimony, U.S. District Judge Philip Gutierrez made it clear that the case's premise was straightforward.
Judge's Frustration Evident
Judge Gutierrez noted that it was easy to see the frustration of a Seattle Seahawks fan living in Los Angeles who cannot watch their favorite team without buying a subscription for all the Sunday afternoon out-of-market games. It’s a sentiment echoed by the 2.4 million residential subscribers and 48,000 businesses covered in this lawsuit, all of whom paid for the package of out-of-market games from the 2011 through 2022 seasons.
The lawsuit claims that the league broke antitrust laws by selling its package of Sunday games aired on CBS and Fox at an inflated price. Additionally, the subscribers argue that the league restricted competition by offering "Sunday Ticket" exclusively through a satellite provider. The NFL firmly maintains that it has the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. Plaintiffs counter, however, that this exemption only applies to over-the-air broadcasts and not pay TV.
Should the NFL be found liable, a jury could award up to $7 billion in damages, a figure that could balloon to $21 billion due to the potential for triple damages in antitrust cases.
Attorney Missteps
Tuesday was not the first time Judge Gutierrez expressed frustration with the plaintiffs' side. On Monday, he admonished their attorneys for repeatedly describing past testimony, which he deemed a waste of time. Before Jones resumed his testimony, Gutierrez questioned the relevance of plaintiffs' attorneys citing Jerry Jones' 1995 lawsuit against the NFL, which challenged the league's licensing and sponsorship procedures. Eventually, that case was settled out of court.
Jones had filed the 1994 lawsuit against the NFL, asserting that while he supported the league's model for negotiating television contracts and the existing revenue-sharing agreements, he contested its licensing and sponsorship procedures. When asked Tuesday if teams should be able to sell their out-of-market television rights, Jones replied that they should not, as it "would undermine the free TV model we have now."
Network Voices
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 believes that "Sunday Ticket" infringes on the exclusivity CBS has in local markets. Both CBS and Fox requested during negotiations that "Sunday Ticket" be sold as a premium package.
It was DirecTV, not the NFL, that set the prices during the class-action period. The league included language in its television contracts with CBS and Fox stipulating that the "resale packages (Sunday Ticket) are to be marketed as premium products for avid league fans that satisfy complementary demand to the offering of in-market games." Additional language prohibits selling individual games on a pay-per-view basis. From 1994 through 2022, the NFL received a rights fee from DirecTV for the package. Starting last year, Google's YouTube TV acquired "Sunday Ticket" rights for seven seasons.
During a deposition, DirecTV marketing official Jamie Dyckes stated that MLB, the NBA, and the NHL had a suggested retail price for their out-of-market packages. He added that there was revenue sharing between the leagues and the carriers, reflecting distribution across multiple platforms.
What's Next?
Testimony will continue Thursday, with closing statements scheduled for early next week. Judge Gutierrez mentioned he would consider invoking a rule allowing the court to find that a jury lacks sufficient evidence to rule for a party in a case.
Throughout the proceedings, Judge Gutierrez candidly admitted, "I'm struggling with the plaintiffs' case." His mounting frustrations became evident with comments like, "The way you have tried this case is far from simple," and "This case has turned into 25 hours of depositions and gobbledygook. This case has gone in a direction it shouldn't have gone."
As the case progresses, all eyes will remain on the courtroom, anticipating whether the plaintiffs' attorneys can present a compelling argument that aligns with the straightforward premise Judge Gutierrez initially outlined.