Jury Deliberations Loom in High-Stakes NFL 'Sunday Ticket' Lawsuit
The jury in the class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL is expected to begin deliberations on Wednesday. This follows the conclusion of both sides presenting their cases on Monday in a legal battle that scrutinizes the league's broadcast distribution strategies.
Final Preparations
U.S. District Judge Philip Gutierrez is set to convene with attorneys from both sides on Tuesday morning to finalize jury instructions. Additionally, Gutierrez is likely to consider a motion from the NFL on Tuesday afternoon, which seeks to grant judgment as a matter of law in favor of the league. The NFL argues that the plaintiffs have failed to provide adequate evidence to support their claims.
On Wednesday morning, Judge Gutierrez will present the final instructions to the jury, consisting of five men and three women, before the closing arguments commence. Each side will have 1 hour and 10 minutes to make their final statements with an additional 20 minutes reserved for the plaintiffs for rebuttal.
Expert Testimonies
The NFL’s last witness, Stanford economics professor B. Douglas Bernheim, concluded his testimony on Monday morning. Bernheim emphasized 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 subsequently to Google YouTube TV, has been beneficial for fans and has ensured competitive balance on the field.
Countering Bernheim’s assertions, Harvard professor Einer Elhauge, the plaintiffs' rebuttal witness, argued that there are no significant links between making "Sunday Ticket" a premium package and fostering competitive balance. Elhauge testified that the approximately $62.5 million each NFL team receives annually from "Sunday Ticket" does not have a significant impact on the league’s salary cap or the operating budgets of individual teams.
Testimonies from Stakeholders
Notably, Dallas Cowboys owner Jerry Jones also testified last week. Jones stated he would not support a salary cap if he were allowed to sell his out-of-market rights independently, a point that underscores the central tension in the lawsuit regarding the NFL's broadcasting rights and revenue distribution.
The Lawsuit
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 suit claims the NFL violated 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 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 services.
Potential Consequences
If the NFL is found liable, the jury could award damages amounting to $7 billion. Given the nature of antitrust cases, this figure could potentially triple to $21 billion. The damages' massive scale highlights the significant financial stakes and the potential impact on the NFL and its broadcasting partners.
The lawsuit was initially filed in 2015 by the Mucky Duck sports bar in San Francisco. Though it faced dismissal in 2017, the 9th Circuit Court of Appeals, which holds jurisdiction over California and eight other states, reinstated the case two years later. Last year, Judge Gutierrez certified the lawsuit as a class action, allowing the case to proceed on behalf of millions of affected subscribers.
Appeals and Future Implications
Regardless of the jury’s decision, the losing party is expected to appeal the verdict. This could lead the case to escalate to the 9th Circuit and potentially to the Supreme Court, extending the legal battle and its ramifications.
As the jury prepares for deliberation, the case stands at a critical juncture. The outcome could reshape the landscape of sports broadcasting and set significant precedents regarding the legality of exclusive distribution deals. Television networks, sports leagues, and millions of subscribers await a verdict that could redefine the broadcasting framework for professional sports.