Deliberations Begin for Jury in NFL's "Sunday Ticket" Class-Action Lawsuit
As the class-action lawsuit filed by "Sunday Ticket" subscribers against the NFL reaches a critical juncture, the jury is expected to begin deliberations on Wednesday after both sides wrapped up their cases on Monday. This landmark case, involving millions of subscribers and billions of dollars, could reshape the landscape of televised sports depending on the verdict.
Final Steps Before Deliberations
U.S. District Judge Philip Gutierrez is scheduled to hold a conference with attorneys for both parties on Tuesday morning to finalize the jury instructions. Additionally, the NFL plans to file a motion on Tuesday afternoon, requesting judgment as a matter of law on the grounds that the plaintiffs failed to provide sufficient evidence.
On Wednesday morning, Judge Gutierrez will present the final instructions to the eight-member jury, composed of five men and three women. This will be followed by final arguments, where each side will have 1 hour and 10 minutes to make their closing statements. The plaintiffs are allocated an additional 20 minutes for rebuttal.
Key Testimonies and Rebuttals
The NFL's final witness, Stanford economics professor B. Douglas Bernheim, concluded his testimony on Monday morning. Bernheim, who began testifying last Thursday, reiterated the league's position 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 a competitive balance on the field.
In contrast, Harvard professor Einer Elhauge, serving as the plaintiffs' rebuttal witness, argued that there are no significant links between the league's constraints to make "Sunday Ticket" a premium package and fostering competitive balance. Elhauge testified that the approximately $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 provided testimony last week. Jones stated that he wouldn’t support a salary cap if he could sell his out-of-market rights independently, further complicating the arguments surrounding competitive balance and financial equity among NFL teams.
The Core of 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 plaintiffs claim that 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 contends that it retains the right to sell "Sunday Ticket" under its antitrust exemption for broadcasting. However, the plaintiffs argue that this exemption only applies to over-the-air broadcasts, not pay TV.
Potential Consequences
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 due to the antitrust nature of the case. This staggering sum underscores the high stakes of this litigation, both in terms of financial repercussions and the potential impact on sports broadcasting practices.
The lawsuit was originally filed in 2015 by the Mucky Duck sports bar in San Francisco. Although it faced initial dismissal in 2017, the 9th Circuit Court of Appeals reinstated the case two years later. Judge Gutierrez sanctioned the proceeding as a class action last year, broadening its scope to include a wider array of plaintiffs.
The Road Ahead
Regardless of the jury's decision, the losing party is expected to appeal the verdict. This could lead the case to be examined by the 9th Circuit Court of Appeals and potentially the Supreme Court, extending the legal battle and its implications for years to come.
The upcoming deliberations mark a pivotal moment in this long-standing legal dispute, casting a spotlight on the future of sports broadcasting and the legality of exclusive distribution deals. As the jury prepares to deliberate, the sports world watches closely, awaiting a decision that could fundamentally alter the landscape of televised sports.